Shriram Properties (SPL) has reported a growth of 58.74 per cent in its net consolidated profit during the quarter ended June 30, 2023. Its profit after tax stood at Rs 16.62 crore in Q1 FY24 as against Rs 10.47 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 157.17 crore in Q1 FY24, a growth of 8.31 per cent from Rs 145.11 crore it recorded in the similar quarter last year.
M Murali, chairman & managing director of the company said, “SPL intends to complete and deliver over 10 million sq ft over the next three years. Continuing revenue recognition momentum and relentless focus on costs should help sustain margins and profitability even in the coming quarters.”
The board of directors have approved the appointment of Ashish P Deora as an additional director (non-executive- non independent), of the company. Deora is the founder of Aurum Ventures, the parent company of Aurum PropTech. Aurum has recently acquired 14.37% of equity capital in Shriram Properties.
The company has achieved Q1 sales volumes of 0.78 million sq ft (+17% year-on-year) and sales values of Rs 459 crore (+47% year-on-year). The share of plotted development stood at ~21%, while the DM model accounted for 12% of sales volumes during the quarter. Blended average realisation for constructed units was higher at Rs 5,463 per sq ft in Q1 FY24 versus Rs 4,694 per sq ft in Q1 FY23 (+16% year-on-year). Plotted unit realisation averaged was at Rs 3,045 per sq ft.
Total operating expenses declined 5% year-on-year to Rs 103.8 crore, supported by 15% lower cost of revenues and 2% lower employee costs. SPL expects cost of debt to drop to ~11.5% levels in Q2 FY24, from 11.9% in FY23 and 13.7% in FY21, amidst rising benchmark rates.
The company’s gross debt stood 12% lower at Rs 488 crore, while net debt stood at Rs 403 crore as at the end of June 2023.
Shriram 122 West will be the second investment by the SPL-ASK Co-investment Platform, set up with a capital commitment of Rs.500 crores in Nov’22. For Shriram 122 West acquisition, the co-investment platform will invest about Rs.205 crore, and the transaction is expected to be closed by the end of August 2023. With this, the SPL-ASK platform would have used 60% of its committed capital and is evaluating further opportunities for investment during FY24.