Shriram Properties Ltd share Price Today

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