November 10, 2023: Shriram Properties today announced its financial results for the second quarter and half year ended September 30, 2023 (Q2FY24 and H1FY24). The company has reported yet another quarter with strong growth in key operating and financial metrics, both on sequential (QoQ) and year-on-year (YoY) basis, it said.
Operational highlights
Total revenue increased 47% QoQ to Rs 231.2 crore while total operating expenses increased by 60% QoQ to Rs 166.1 crore, reflecting changed product mix and increase in employee cost associated with normal increments. The company achieved Q2 sales volumes of 1.15 million square foot (msf, showcasing 48% growth QoQ and a 14% increase YoY.
Q2 sales value at Rs 608 crore was up 32% QoQ and 40% YoY, on the back of strong sustenance sales and contribution from new phases launched during the quarter. Remarkably higher sales values reflect the change in product mix and improved pricing. For H1FY24, SPL has achieved sales volumes of 1.9 msf (over 14% YoY) and sales values of Rs 1,066 crore (over 43% YoY). At Rs 20.2 crore, Net profit grew 21% QoQ in Q2FY24.
The company’s average realisation has grown by 14% so far in H1FY24, on top of 8% growth in FY23. On a comparable basis, realisation in the affordable category averaged Rs 4,868/sqft while mid-market unit realisation averaged at Rs 6,378/sqft in H1FY24. The current average realisation in mid-market category has grown remarkably from sub-Rs 5,000/sqft levels in FY21, reflecting the success of SPL’s conscious efforts to move up the price curve over the years.
Gross collections stood strong at Rs 430 crore in Q2FY24, showing 48% QoQ and 37% YoY growth in Q2FY24. Consequently, aggregate gross collections rose to the highest-ever half-yearly collection levels of Rs 721 crore ( over 13% YoY) in H1FY24.
The company handed over more than 470 units during Q2, pushing aggregate customer handover to over 830 units during H1FY24. The company is on-track to hand over nearly 3,000 units in FY24, supported by targeted completion of 5 key projects/phases during H2FY24.
Launch activity
During the quarter, the company launched two new phases in ongoing projects, Shriram Imperial Heights, premium towers in Shriram 107 South East, and Sovereign Plots in Shriram Pristine Estate. Both launches have received encouraging initial response and achieved intended price appreciation and desired product differentiation.
The company successfully pre-launched Shriram Paradiso (1 msf residential project in Chennai) towards the end of September. Ongoing efforts have received an encouraging initial response and should positively impact sales volumes in H2FY24.
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