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

In Q1FY23, the company 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. (Shriram Properties Website)Premium
In Q1FY23, the company 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. (Shriram Properties Website)

  • On a year-on-year basis, the company's revenue and EBITDA nearly tripled during the quarter. While sales volumes witnessed double-digit growth. Shriram Properties will continue to be focused on profitable growth by leveraging a strong project pipeline and market opportunities.

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Shriram Group's residential developer, Shriram Properties posted a consolidated net profit of 10.47 crore in the quarter ending June 30, 2022, compared to a loss of 36.74 crore in the same quarter of the previous fiscal. However, the latest quarterly PAT declined by 83.85% from 64.83 crore in the preceding quarter. On a year-on-year basis, the company's revenue and EBITDA nearly tripled during the quarter. While sales volumes witnessed double-digit growth. Shriram Properties will continue to be focused on profitable growth by leveraging a strong project pipeline and market opportunities.

Consolidated revenue from operations stood at 122.17 crore in June 2022 quarter rising by 2.90 folds from 42.13 crore in the corresponding period last year on the back of income recognition in two key projects and 62% YoY growth in DM fee during Q1FY23. However, revenue plunged by 40.43% from 205.08 crore in March 2022 quarter.

During the quarter, EBITDA has more than tripled to 35.5 crore 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.

In Q1FY23, the company 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 313 crore, against 248 crore in Q1FY22, up 26% YoY. Meanwhile, aggregate collections were higher by 34% YoY at Rs. 324 crores in Q1FY23. Construction spend was also higher by 52% YoY at Rs.137 crores, demonstrating continued focus on project execution.

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."

Also, the company registered 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," Shriram Properties said in its statement.

Further, the company's gross debt dropped 6% QoQ to 451.2 crore in Q1FY23, while net debt stood at 364.1 crore in the quarter. The 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 a prepaid debt of ~ 200 crore and refinanced ~ 265 crore, apart from JV debt refinancing activities.

Going forward, the Chairman said, "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."

On BSE, Shriram Properties shares settled flat at 73.05 apiece on Friday. The company's market cap is around 1,241.59 crore.

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