Shriram Properties revenue nearly tripled to ₹122cr in Q1 on strong sales

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Residential developer of the Shriram Group, Shriram Properties recorded a consolidated net profit of 10.47 crores in the quarter ending June 30, 2022, compared to a loss of 36.74 crores in the same quarter of the prior year. However, the latest quarterly PAT was down 83.85% from 64.83 crores in the previous quarter. On an annual basis, the company’s revenue and EBITDA nearly tripled in the quarter. While sales volumes experienced double-digit growth. Shriram Properties will continue to focus on profitable growth by leveraging a strong pipeline of projects and market opportunities.

Consolidated revenue from operations amounted to 122.17 crore in the June quarter of 2022, up 2.90x from 42.13 crore in the corresponding period last year thanks to revenue recognition in two key projects and 62% YoY growth in DM fees in Q1FY23. However, revenue plunged 40.43% from 205.08 crores in the March 2022 quarter.

During the quarter, EBITDA more than tripled to reach 35.5 crore compared to the first quarter of FY22, reflecting an increase in revenue recognition, an increase in DM expense share and lower growth in total expenses. EBITDA margins increased to 24.5% from 18.9% in Q1FY22.

In the first quarter of FY23, the company reported 20% year-over-year growth in sales volumes to 0.66 million, supported by strong sustaining sales across all projects and the launch of a new phase of an ongoing project. For the quarter, the overall value of sales was 313 crore, against 248 crores in Q1FY22, up 26% YoY. Meanwhile, overall collections were 34% higher year-on-year at Rs. 324 crores in Q1FY23. Construction expenditure also increased by 52% year-on-year to Rs 137,000,000, demonstrating continued focus on project execution.

Murali M, President and CEO, said, “The continued momentum in earnings and turnaround is reassuring and demonstrates the strength of our team and operating platform. The current strong performance reinforces confidence in our strategy and execution plan.”

In addition, the company recorded 4% higher achievement, with actual growth of between 1% and 9% across all projects, compared to levels seen in March 22. The company also recorded higher average achievement around 8% during S2FY22.

“Price improvement was seen across all product segments. The Company expects the price curve to improve further due to strong demand, cost considerations and the impact of the industry consolidation,” Shriram Properties said in its statement.

Additionally, the company’s gross debt fell 6% quarter-on-quarter to 451.2 crore in Q1FY23, while net debt stood at 364.1 crores in the quarter. The leverage ratio at 0.32x is among the lowest in the industry. The Company remains focused on reducing debt and interest costs over the next few quarters.

Post-IPO, the Company has a prepaid debt of ~ 200 crore and refinanced~ 265 crore, excluding JV debt refinancing activities.

Going forward, the Chairman said, “We will remain focused on profitable growth by leveraging the strong pipeline of projects and market opportunities. We believe we are on track to deliver superior shareholder value in the years to come.

On the BSE, shares of Shriram Properties stabilized at 73.05 each Friday. The market capitalization of the company is approximately 1,241.59 crores.

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