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Bengaluru-based real estate player Shriram Properties witnessed a 58.73 per cent surge in net profit at ₹16.62 crore for the quarter ended June., against ₹10.47 crore recorded during the corresponding quarter in the previous year.
The company also revealed the appointment of Ashish Deora as director.
The company’s revenue from operations grew 10.5 per cent to ₹135 crore (₹122.17 crore). Profit before tax saw a 40 per cent growth at ₹24.37 crore (₹17.39 crore).
According to the company, its total operating expenses declined 5 per cent y-o-y to ₹103.8 crore. The decline was bolstered by a 15 per cent reduction in the cost of revenues and a 2 perc ent decrease in employee costs. Reflecting improved revenue recognition and cost control, EBITDA margins stood strong at 34 per cent against 24 per cent in Q1FY24.
“We are encouraged by the continuing strong operating and financial performance. Our results are a resounding testament to our unwavering dedication and strategic approach. Looking ahead, with our launches, we remain positive in our commitment to, delivering homes and contributing meaningfully to the growth of the company,” said M Murali, CMD, Shriram Properties.
Consistent sales
Sales volumes increased 17 per cent year-on-year to 0.78 million square feet (msf), while sales value stood at ₹459 crore – a 47 per cent improvement compared to the previous year. “This growth was driven by consistent sales in ongoing projects and the successful launch of two projects during Q1FY24. The improved sales value can be attributed to an enhanced product mix and more favourable pricing. Plotted development represented 21 per cent of sales, while the DM model contributed 12 percent of sales volumes during the quarter,” the company said.
The company remains confident of its outlook, supported by positive market trends and robust opening stock in ongoing projects and planned launches for forthcoming quarters, and expects a strong outlook for volumes and pricing.
With a pipeline comprising 49 projects and a combined saleable area of 52 million square feet (msf), including 23 msf in ongoing projects (75 per cent of which has already been sold), Shriram Properties is strategically positioned to capitalise on the ongoing industry consolidation.
Additionally, the company aims to complete and deliver over 10 msf in the next three years. The strategic move supports income recognition and free cash flows and sustains growth momentum, delivering substantial value to stakeholders, it added.
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