Shriram Properties Results: Latest Quarterly Results & Analysis

Realty company Shriram Properties announced H1FY25 results

• Total revenues are marginally lower at 366.0 crore.
• Deferral of income recognition in Q2 had impact on H1FY25.
• EBIDTA of 66.9 crore and consolidated PAT of Rs 16.7 crore for H1FY25.

Murali M, CMD, Shriram Properties, said: “Q2FY25 is short-term aberration for the sector that witnessed reduced launches. Long term prospects for the sector remains positive and our strong market presence and success of our strategic initiatives will enable us in maintaining growth and delivering on promises even in the coming years. Our solid project pipeline, a strong execution platform, and our unwavering focus on costs and quality will contribute towards profitable growth even in the future”.

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Realty company Shriram Properties announced Q1FY25 results:    

• Revenue from operations grew by 14% YoY and Total Revenues by 34% YoY to Rs 210.9 crores. Revenue recognition in recently completed projects viz., Shriram Liberty Square (Bangalore), Shriram Park 63 - 1B (Chennai), Shriram Chirping Woods T5 (Bangalore) Shriram Grand One (Kolkata) accounted for most of revenues. Gain of early exit of ASK has also helped. 
• EBITDA for the quarter stood at Rs 53.6 crores, compared to Rs 53.3 crores in Q1FY24, flat YoY. Change in mix of projects handovers (low margin legacy projects) and higher employee costs reflecting annual revisions impacted margins.
• EBITDA margins thus stood at 25% in Q1FY25, compared to 34% in Q1FY24. Gross margins remained healthy at 31% during the quarter.
• Overall finance cost dropped 19% YoY to Rs 26.7 crores in Q1FY25. Interest costs declined from Rs 27.8 crores in Q1FY24 to Rs 22.8 crores during Q1FY25. Non-cash interest charges too dropped from Rs 5.1 crores to Rs 3.9 crores respectively during this period.
• Net debt was only a shade higher at Rs 482.0 crores in Q1 and debt-equity ratio stood low at 0.37:1, which is amongst lowest in the industry.
• Profit before taxes for Q1 stood at Rs 27.3 crores. Net profit at Rs 17.5 crores in Q1FY25 reflected a modest growth compared to Rs 16.6 crores in Q1 last year. 
• Cashflows remained strong even during the quarter. Cash from Operations remained positive at Rs 30 Crore, but free cashflow turned marginally negative reflecting debt repayment during the quarter. The Company made new project investments of Rs 44 crores during Q1 FY25, thereby ending the quarter with Cash & Cash equivalents of Rs 128 crores.

Commenting on the performance, Mr Murali M, CMD, Shriram Properties said: “Our strong market presence and success of our strategic initiatives give us confidence in maintaining growth and delivering on promises in the years to come. Our solid project pipeline, a strong execution platform, and our unwavering focus on costs and quality will contribute towards profitable growth even in the future”. 

Result PDF

Realty company Shriram Properties announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• On a quarterly basis, Total Revenues have more than doubled to Rs 358 crore while EBTIDA has grown by an impressive 45% YoY to Rs 66 crore in Q4FY24.
• Net profit for the quarter stood at Rs 20 crore, up 28% YoY in Q4FY24.

FY24 Financial Highlights:

• Total Revenues have grown 21% YoY to Rs 987 crore on the back of successful completion and revenue recognition in certain key projects viz., Shriram Liberty Square (Bangalore), Shriram Park 63 - 1B (Chennai), Shriram Chirping Woods T5 (Bangalore) Shriram Grand One (Kolkata). Revenue recognition with handover of units in certain other projects continued as well.
• EBITDA for the full year stood at Rs 223 crore, compared to Rs 183 crore in FY23, reflecting a growth of 22% YoY. EBITDA margins remained stable at 23% in FY24.
• Interest expenses remained flat at Rs 74 crore, despite absorption of interest costs associated with the re-acquisition of JV economic interest in Shriram Park63 from Mitsubishi Corporation during Q3FY24. Overall finance cost however is higher by 11% YoY, due to certain one-time interest costs associated with the acquisition of Shriram 122 West in Q1FY24.
• SPL’s cost of debt dropped further to 11.6%, as compared to 11.9% in FY23. It compares favourably with average cost of 13.7% in FY21 and such steep reduction is despite the RBI rate hike impact (approx. 200bps) during this period. The cost of incremental debt is now in the 10.0% - 10.5% range, which is encouraging.
• Net debt remained almost flat at Rs 441 crore and debt-equity declined marginally to 0.35:1, which is amongst lowest in the industry.
• Net profit improved to Rs 75 crore in FY24, compared to Rs 68 crore in FY23, up 10% YoY
• Consolidated cashflows from operations nearly doubled to Rs.227 crore in FY24. The Company has realised free cashflows (FCF) before new project investments of Rs 156 crore in FY24, compared to Rs 116 crore in FY23. Notably, supported by project completions, the Company has unlocked free cashflows of around Rs 272 crore in last two years, which has played significant role in augmenting new projects towards sustaining growth momentum in the future.

Commenting on the performance, Murali M, CMD, Shriram Properties said: “Our recordbreaking results are a testament to our commitment to growing the business profitably, year-afteryear. We have achieved significant milestones during the year, notwithstanding certain external-led delays in receipt of approvals and OCs. Our teams have worked diligently to overcome challenges and deliver on promises. Supported by our strong market presence and success of strategic initiatives, we are confident of sustaining growth and profitability in the coming years. Our robust launch pipeline, strong execution platform coupled with continued focus on cost management and commitment to delivering quality will support towards this end”.

Result PDF

Realty company Shriram Properties announced 9MFY24 results:

• Total Revenues remained nearly flat at Rs 629 crore in 9MFY24. DM Fee contributed approximately 10% of total revenues, indicating the stabilization of the DM business model.
• Total Operating Expenses decreased by 7% YoY to Rs 472 crore, despite normal increases in employee costs and higher other expenses, mainly related to marketing activities.
• EBITDA increased by 14% YoY to Rs 157 crore, and EBITDA margins stood strong at 25%, compared to 21% in 9MFY23. Improved margins reflect the benefits of the changed product mix and higher price realization, surpassing the industry average growth during this period.
• Finance costs rose by 15%, but interest expenses remained nearly flat on a YoY basis. This is despite absorbing interest associated with the re-acquisition of JV economic interest in Park63 from Mitsubishi Corporation and one-time costs related to the acquisition of Shriram 122 West.
• Gross debt stood at Rs 508 crore compared to Rs 553 crore in Mar’23. The stabilization of the cost of debt at 11.5% to 12%, despite the impact of RBI rate hikes, is encouraging.
• Net Profit reached Rs 55 crore, compared to Rs 52 crore in 9MFY23 and Rs 68 crore in FY23.
• The Company reported a Return on Capital Employed (ROCE) of 11%, which is among the highest in the sector.

Commenting on the performance, M Murali, CMD of Shriram Properties said: “We are excited to announce our entry into the Pune markets. Given the strong familiarity to the “Shriram” brand and our proven track record, we are confident of successful entry and expansion into this large, growth market.

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 Q4FY24. We thus remain confident on the full yearFY24 and our growth over the next few years. Given the positive market dynamics and strong pipeline, we remain confident of sustaining profitable growth and delivering superior returns to our stakeholders”

Result PDF

Realty company Shriram Properties announced Q1FY24 results:

• Sales volume at 0.78 MSF ( 17% YoY) and Sales values at Rs 459 crore ( 47% YoY)
• Revenue from Operations grew 10% YoY to Rs 135.0 crore, reflecting continued handover and registration momentum in recently completed projects. Total Revenues grew by 8% YoY to Rs 157.2 crore and DM Fee income accounted for 12% of Total Revenues.
• Total Operating Expenses declined 5% YoY to Rs 103.8 crore, supported by a 15% lower cost of revenues and 2% lower employee costs. Reflecting improved revenue recognition and cost control, EBITDA margins stood strong at 34%, against 24% in Q1FY24.
• Interest expenses were down 14% YoY at Rs 16.0 crore (vs. Rs 18.7 crore in Q1FY23). In addition, the Company has provided for a non-cash finance charge of Rs 5.1 crore (same on a YoY basis and relates to 4% NCF on Bengal) and non-recurring interest cost of Rs 6.9 crore associated with the acquisition of a new project in Chennai during May’23.
• Remarkable reduction in recurring interest expenses reflects the success of our ongoing efforts to reduce absolute debt and cost of debt. SPL expects the cost of debt to drop to ~11.5% levels in Q2FY24, from 11.9% in FY23 and 13.7% in FY21, amidst rising benchmark rates.
• Profit Before Tax and JV Income stood at Rs 18.3 crore, up 134% YoY, in Q1FY24.
• The Company’s share of profits from JVs stood at Rs 6.1 crore reflecting sustained revenue recognition momentum at Shriram Park63 Chennai, a JV with Mitsubishi Corporation of Japan. The impact was partly offset by SPL’s share of marketing and refinancing costs at three other JVs that have not yet reached revenue recognition thresholds.
• Net Profit stood at Rs 16.6 crore in Q1FY24, compared to Rs 10.5 crore in Q1FY23, reflecting a growth of 59% YoY.
• The Company has strong visibility on income recognition from projects scheduled for completion and handover during the remainder of the year and thus remains confident of strong earnings momentum for the full year.
• The Company’s gross debt stood 12% lower at Rs 488 crore, while net debt stood at Rs 403 crore as of June 30, 23.

Commenting on the performance, M Murali, CMD, of Shriram Properties said, “We are encouraged by the continuing strong operating and financial performance. Our impressive results achieved by Shriram Properties serve as a resounding testament to our unwavering dedication and strategic approach. These favourable results not only validate our relentless pursuit of excellence but also fortify our resolve to continuously enhance the Company’s landscape. Looking ahead, with our launches we remain positive in our commitment to, delivering homes and contributing meaningfully to the growth of the Company."

Result PDF

Realty company Shriram Properties announced Q4FY23 & FY23 results:

• Sales value reached a new high of Rs 1,846 crore, up 25% YoY
• Gross collections stood strong at ~Rs 1,200 crore, despite delayed launch impact
• On a quarterly basis, Q4FY23 performance was impressive as well. Quarterly sales stood at 1.31 msf, up 26% QoQ and 12% YoY. Gross collections grew by 24% QoQ to Rs 307 crore in Q4FY23.
• Total Revenues have grown 57% YoY to Rs 814 crore in FY23
• EBITDA stood at Rs 183 crore in FY23. EBITDA margins stood at 22%.
• Net profit soared to Rs 68.3 crore, reflecting 3.8x growth compared to Rs 18 crore in FY22
• The Company’s gross debt stood at Rs 553 crore and net debt at Rs 432 crore in Mar’23. Debt-Equity ratio at 0.36x is among the lowest in the sector.
• SPL assigned “A-/Stable” by CRISIL Ratings

Commenting on the performance, M Murali, CMD, Shriram Properties said: “We are encouraged by the strong improvement in operating and financial performance, consistent with our promises. Our operating platform remains robust and resilient and is fully geared to leverage our strength in the consolidating industry environment. FY23 Earnings turnaround is encouraging and are confident of sustained improvement in earnings and profitability. SPL is emerging as one of the fastest growing and profitable residential real estate company”.

Result PDF

Realty firm Shriram Properties announced Q3FY23 results:

Q3FY23:

• Revenue from operations up 60% YoY, reflects impact of new projects reaching revenue recognition.
  • Completion certificate (OC) received in Southern Crest (Bangalore) and Grand-1 (Kolkata)
  • Greater handover momentum in Temple Bells and Summit 
• LO settlements and gain on transfer of development rights in an upcoming project to JV partner added Rs 297 million. Routine project income but classified as other income due AS requirements.
• EBITDA margins at 22.9% in Q3, compared to 18.6% in Q2FY23 and 40.9% in Q3FY22.
  • Absolute EBITDA growth YoY is muted, due to higher base of last year
  • Higher base of last year (Q3FY22) attributed to income recognition in a high margin JDA plotted development project (Santorini)
• Overall finance cost lower 25% YoY; Interest expense down 42% YoY at Rs 145 million in Q3FY23
  • Unwinding impact of Bengal 4% GoWB liabilities stable at Rs 57 million in Q3
  • Despite refinancing costs associated with Shankari (shifted from NBFC to Bank, delivering interest savings of 4.30% p.a.)
• PBT higher by 20% YoY at Rs 260 million
• Share of JV negative - Positive contribution from income recognition at Park63 (residential JV with Mitsubishi Corpn.) masked by renewed campaign/marketing costs at 2 other JVs (WYTfield & 107 South East) that have not reached income recognition threshold.
• Net profit at Rs 224 million, up 69% YoY and 14% higher sequentially. The rising trend over the quarters continued.

Result PDF

Shriram Properties announced Q2FY23 results:

• Q2FY23:
  • For the quarter, total revenues stood at Rs 275.8 crore, up 90% QoQ and 193% YoY
  • EBITDA for the quarter at Rs 51.3 crore reflected a growth of 44% QoQ and 138% YoY
  • The company reported net profit of Rs 19.6 crore in Q2FY23
• H1FY23:
  • The company reported a tripling of revenue from operations to Rs 380.7 crore, compared Rs 118.2 crore in H1FY22
  • Total revenues were nearly 2.7x higher at Rs 420.9 crore
  • EBITDA for the period stood higher at Rs 86.8 crore in H1FY23, reflecting a growth of 162% YoY
  • Net profit for the period stood strong at Rs 30.1 crore in H1FY23, against Rs 18 crores for the full year in FY22

Murali M, Chairman and Managing Director, said: “We are encouraged by the strong operational and financial growth as well as sustained earnings growth momentum seen since listing. This is reassuring and demonstrates the strength of our team and the operating platform. We will remain focused on profitable growth by leveraging the strong project pipeline and market opportunities. Improving operating leverage and stabilising DM business model should add further strength. We believe we are on the right path to delivering superior shareholder value in the coming years”.

Result PDF

Realty firm Shriram Properties announced Q1FY23 Result :

• Revenue and EBIDTA more than doubled; Earnings turnaround momentum continue.
• The Company has reported 20% YoY growth in sales volumes at 0.66 million, supported by strong sustenance sales across projects and the launch of a new phase in an ongoing project. For the quarter, aggregate sales value stood at Rs.313 crore, against Rs.248 crore in Q1FY22, up 26% YoY. Aggregate collections were higher by 34% YoY at Rs. 324 crores in Q1FY23. Construction spend were higher by 52% YoY at Rs.137 crores, demonstrating continued focus on project execution.
• The Company has clocked 4% higher realisation, with actual growth ranging between 1% to 9% across projects, compared to levels seen in Mar’22. The Company witnessed ~8% higher average realisation in H2FY22 as well. Price improvement was seen across all product segments. The Company expects the price curve to improve further on the back of strong demand, cost considerations and impact of industry consolidation.
• The Company has reported excellent financial performance for the quarter as well. Revenue from operations nearly tripled on YoY basis to Rs. 122 crores on the back of income recognition in two key projects and 62% YoY growth in DM fee during Q1FY23. Total revenues also more than doubled to Rs.145.1 crores in Q1FY23, despite delayed revenue recognition in one key projects in Bengaluru.
• EBITDA has more than tripled to Rs.35.5 crores in Q1FY23 vis-à-vis Q1FY22, reflecting higher revenue recognition, increased share of DM fee and lower growth in total expenses. EBITDA margins were higher at 24.5% against 18.9% in Q1FY22
• Overall finance costs were lower by 13% YoY, reflecting reduced debt levels and ongoing refinancing efforts. Share of profits from JVs was remarkably higher, reflecting the start of revenue recognition on completion and handover at one of the JV projects in Chennai.
• The Company was able to sustain the turnaround momentum seen in H2FY22. Net profit for the quarter stood at Rs.10.5 crores against full year profit of Rs.18 crores in FY22. This reinforces confidence on earnings potential for the full year.
• The Company’s gross debt dropped 6% QoQ to Rs.451.2 crores in Jun’22, while net debt stood at Rs. 364.1 crores in Jun’22. Debt-Equity ratio at 0.32x is among the lowest in the sector. The Company remains focused on reducing debt and interest costs further in the coming quarters. Post IPO, the Company has prepaid debt of ~Rs.200 crores and refinanced ~Rs.265 crores, apart from JV debt refinancing activities.

Commenting on the Company’s performance, Mr Murali M, Chairman and Managing Director, said: “The continued strong earnings and turnaround momentum is reassuring and demonstrates the strength of our team and the operating platform. Strong current performance reinforces confidence on our strategy and the execution plan. We will remain focused on profitable growth by leveraging the strong project pipeline and market opportunities. We believe, we are on the right path to delivering superior shareholder value in the coming years”.

Result PDF