Shriram Properties Ltd reported an increase in sales for the quarter ending June that resulted in a consolidated net profit of Rs 10.48 crore. The company had reported a net loss of Rs 3.67 crore in the corresponding period of the preceding fiscal.
The company's first-quarter income more than doubled from Rs 60.9 crore in the year-ago period to Rs 145.11 crore this year. The company reported a 20 percent year-over-year growth in sales volumes at 0.66 million on sustained sales across projects and the launch of a new phase in an ongoing project.
Shriram Properties' sales bookings jumped 26 percent to Rs 313 crore during the quarter under review, from Rs 248 crore in the previous fiscal. The construction spend surged 52 percent year-on-year to Rs 137 crore.
Price improvement was report across segments. The company expects the price curve to improve further on the back of strong demand, cost considerations and the impact of industry consolidation. The company's gross debt dropped 6 percent from the previous quarter to Rs 451.2 crore at the end of the June quarter.
"The company remains focused on reducing debt and interest costs further in the coming quarters. Post IPO, the company has a prepaid debt of around Rs 200 crore and refinanced about Rs 265 crore, apart from JV debt refinancing activities," the company said in a statement. It expects to hand over about 10 million square feet during FY23-25.
Chairman and Managing Director of , Murali M, Shriram Properties, said, "The continued robust earnings and turnaround momentum is reassuring and demonstrates the strength of our team and the operating platform. Strong current performance reinforces confidence in our strategy and execution."
He added that the company would remain focused on profitable growth by leveraging the strong project pipeline and market opportunities. The company has added eight projects in the pipeline, aggregating to about 7 million square feet of development potential since March 2022.
A leading residential real estate developer in South India, Shriram Properties Ltd is primarily focused on middle-market and affordable housing. Over 85 percent of its development activities are focused on Bengaluru, Chennai, and Kolkata.
The company has delivered 32 projects with a total saleable area of 19 million square feet. As of June 30, 2022, the company's development pipeline contained 53 projects with an aggregate development potential of 53 million square feet.
First Published: Aug 13, 2022 6:50 PM IST
