February 15, 2024: Real estate developer Shriram Properties Limited (SPL) reported 17% decline in its profit after tax (PAT) at Rs 18.48 crore in the third quarter of the current financial year (Q3FY24) . The net profit for the same period a year ago was Rs 22.36 crore.
The company saw total revenue growth of 8% YoY at Rs 240.6 crore from Rs 222 crore in Q3FY23. For the three-month period ended December 31, 2023, the company achieved sales volumes of 1.1 msf (+6% YoY). The company’s total revenues was at Rs 629 crore in 9M FY24 as compared to Rs 643 crore in 9MFY23.
The company pointed that the muted growth in Q3 is due to certain adversities that led to delay/deferral of certain launches in Chennai and Bangalore. Unprecedented rains and floods in Tamil Nadu and plan approval delays in certain projects in Bangalore led to delay/deferral of launches that have now been moved to Q4FY24. The company expects to recoup lost momentum in Q4 FY24.
As part of its growth strategy, the builder is entering the Pune market. The company has signed a management agreement for the development of a residential project in Undri, Pune. The decision to explore this opportunity aligns seamlessly with the company’s asset-light growth strategy.
The project envisages the development of over 1.7 million square foot (msf) of residential area and 0.3 msf of commercial area. According to Shriram Properties, the project has sales value potential of over Rs 1,300 crore and is planned to be executed over the next 3-4 years. The project is awaiting final leg of plan approvals and subsequent RERA ahead of the launch targeted for Mar’24 / Apr’24.
M Murali, CMD of Shriram Properties, said, “We are excited to announce our entry into the Pune markets. Given the strong familiarity to the Shriram brand and our proven track record, we are confident of successful entry and expansion into this large, growth market. Our performance for the year so far is satisfactory. Current quarter witnessed muted growth due to certain adversities but are fully equipped to recoup lost impact during Q4FY24. We thus remain confident on the full year FY24 and our growth over the next few years. Given the positive market dynamics and strong pipeline, we remain confident of sustaining profitable growth and delivering superior returns to our stakeholders. ”
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With 16+ years of experience in various sectors, of which more than ten years in real estate, Anuradha Ramamirtham excels in tracking property trends and simplifying housing-related topics such as Rera, housing lottery, etc. Her diverse background includes roles at Times Property, Tech Target India, Indiantelevision.com and ITNation. Anuradha holds a PG Diploma degree in Journalism from KC College and has done BSc (IT) from SIES. In her leisure time, she enjoys singing and travelling.
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