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Shriram Properties sess 58.74% growth in Q1 FY24 net profit
Real Estate

Shriram Properties sess 58.74% growth in Q1 FY24 net profit

Shriram Properties (SPL) has announced a substantial 58.74% growth in its net consolidated profit for the quarter ending June 30, 2023. The company reported a profit after tax of Rs 16.62 billion in Q1 FY24, compared to Rs 10.47 billion in the corresponding quarter of the previous fiscal, according to a BSE filing.

During Q1 FY24, the net consolidated total income of the company reached Rs 157.17 billion, marking an 8.31% increase from Rs 145.11 billion recorded in the same quarter the previous year.

M Murali, the chairman and managing director of SPL, stated that the company aims to complete and deliver more than 10 million sq ft within the next three years. He expressed confidence in maintaining margins and profitability in the upcoming quarters through sustained revenue recognition and cost management.

The board of directors approved the appointment of Ashish P Deora as additional director, who is the founder of Aurum Ventures, the parent company of Aurum PropTech. Aurum recently acquired 14.37% equity capital in Shriram Properties.

During Q1 FY24, SPL achieved sales volumes of 0.78 million sq ft (+17% YoY) and sales values of Rs 459 billion (+47% YoY). The plotted development share was ~21%, while the DM model constituted 12% of sales volumes. The blended average realization for constructed units was higher at Rs 5,463 per sq ft in Q1 FY24 compared to Rs 4,694 per sq ft in Q1 FY23 (+16% YoY). Plotted unit realization averaged Rs 3,045 per sq ft.

Operating expenses decreased 5% YoY to Rs 103.8 billion, with lower cost of revenues and employee costs. SPL expects the cost of debt to decrease to ~11.5% levels in Q2 FY24. The company's gross debt decreased 12% to Rs 488 billion, while net debt was Rs 403 billion as of June 2023.

SPL-ASK Co-investment Platform's second investment, Shriram 122 West, is set to be completed by August 2023 with an investment of about Rs 205 billion. The platform has utilized 60% of its committed capital and is exploring further investment opportunities in FY24.

Shriram Properties (SPL) has announced a substantial 58.74% growth in its net consolidated profit for the quarter ending June 30, 2023. The company reported a profit after tax of Rs 16.62 billion in Q1 FY24, compared to Rs 10.47 billion in the corresponding quarter of the previous fiscal, according to a BSE filing.During Q1 FY24, the net consolidated total income of the company reached Rs 157.17 billion, marking an 8.31% increase from Rs 145.11 billion recorded in the same quarter the previous year.M Murali, the chairman and managing director of SPL, stated that the company aims to complete and deliver more than 10 million sq ft within the next three years. He expressed confidence in maintaining margins and profitability in the upcoming quarters through sustained revenue recognition and cost management.The board of directors approved the appointment of Ashish P Deora as additional director, who is the founder of Aurum Ventures, the parent company of Aurum PropTech. Aurum recently acquired 14.37% equity capital in Shriram Properties.During Q1 FY24, SPL achieved sales volumes of 0.78 million sq ft (+17% YoY) and sales values of Rs 459 billion (+47% YoY). The plotted development share was ~21%, while the DM model constituted 12% of sales volumes. The blended average realization for constructed units was higher at Rs 5,463 per sq ft in Q1 FY24 compared to Rs 4,694 per sq ft in Q1 FY23 (+16% YoY). Plotted unit realization averaged Rs 3,045 per sq ft.Operating expenses decreased 5% YoY to Rs 103.8 billion, with lower cost of revenues and employee costs. SPL expects the cost of debt to decrease to ~11.5% levels in Q2 FY24. The company's gross debt decreased 12% to Rs 488 billion, while net debt was Rs 403 billion as of June 2023.SPL-ASK Co-investment Platform's second investment, Shriram 122 West, is set to be completed by August 2023 with an investment of about Rs 205 billion. The platform has utilized 60% of its committed capital and is exploring further investment opportunities in FY24.

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