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Shriram Properties’ net profit dips 17.35% in Q3 FY24

Shriram Properties' net consolidated total income stood at Rs 240.57 crore in Q3 FY24, a growth of 8.36 per cent from Rs 222.01 crore it recorded in the similar quarter last year.

Shriram Properties (SPL) has reported a dip of 17.35 per cent in its net consolidated profit during the quarter ended December 31, 2023. Its profit after tax stood at Rs 18.48 crore in Q3 FY24 as against Rs 22.36 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.

The company’s net consolidated total income stood at Rs 240.57 crore in Q3 FY24, a growth of 8.36 per cent from Rs 222.01 crore it recorded in the similar quarter last year.

For Q3FY24, the company achieved sales volumes of 1.1 million sq ft. Muted growth in Q3 is due to certain adversities that led to delay/deferral of certain launches in Chennai and Bengaluru. Unprecedented rains and floods in Tamil Nadu and plan approval delays in certain projects in Bengaluru led to delay/deferral of launches that have now been moved to Q4FY24. The company
expects to recoup lost momentum in Q4 FY24.

M Murali, chairman and managing director of the company said, “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 Q4 FY24. We thus remain confident on the full year FY24 and our growth over the next few years.”

As part of its growth strategy, SPL is planning an entry into the Pune region, and has signed a development management (DM) agreement for the development of a residential project in Undri. It proposes the development of over 1.7 million sq ft of residential area and 0.3 million sq ft of commercial area and has sales value potential of over Rs 1,300 crore and is to be executed over the next 3-4 years.

For 9M FY24, the company has achieved sales volumes of 3.03 million sq ft reflecting a growth of 12% year-on-year. Customer collections stood at Rs 1,055 crore.

Its average realisation has grown by 15% so far in FY24, against an average price increase of 7% and 4% in Bangalore and Chennai markets respectively.

The company handed over 1,600 units to customers, compared to 2,000 units handed over in FY23. It remains confident of targeted handover of about 3,000 units in FY24.

Finance costs are higher by 15%, but interest expenses are nearly flat on year-on-year basis. This is despite absorption of interest associated with the re-acquisition of JV economic interest in Park63 from Mitsubishi Corporation and one-time cost associated with the acquisition of Shriram 122 West.

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