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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”
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