Bengaluru-based real estate developer Shriram Properties Limited (SPL) on August 14 reported a profit of Rs 16.6 crore for the first quarter of the current financial year, up 59 percent from the year-ago period.
The company's revenue dipped about 8 percent to Rs 157.2 crore from Q4FY23, the company said in a regulatory filing.
SPL clocked Q1 sales of Rs 459 crore, up 47 percent year on year (YoY), by selling 0.78 million square feet (msf). The share of plotted development stood at about 21 percent, while the development management model accounted for 12 percent of sales volumes during the quarter.
SPL launched Shriram Esquire, a premium residential project in Koramangala and Shriram Hebbal 1 in Bengaluru.
It has lined up two launches in Chennai and
another launch in Bengaluru during Q2 and is targeting three launches during Q3 FY24, the company said.
The average cost realisation for constructed units was higher at Rs 5,463 per sq ft, up from Rs 4,694 in the year-ago period. On a comparable basis, mid-market units clocked 1-6 percent higher realisation across projects and averaged at Rs 6,525 a sq ft.
The affordable units registered 8 percent YoY growth at Rs 4,711 per sq ft in Q1FY24, while the plotted unit realisation averaged at Rs 3,045 per sq ft.
During the quarter, SPL completed three projects — Shriram Blue, Shriram Rainforest and Eden144 — with an aggregate development area of 1.36 msf.
The company said it is on track to hand over 3,000 units in FY24.
Alternate investment fund
SPL's gross debt was 12 percent lower at Rs 488 crore, while net debt stood at Rs 403 crore at the end of June 2023.
"This was despite the assumption of debt related to the acquisition of a new project at Chennai in May which is being launched as Shriram 122 West. With the proposed transfer of Shriram 122 West to the ASK co-investment platform by end-August 2023, SPL's gross debt would drop materially during Q2 FY24," the company said.
Shriram 122 West will be the second investment by the SPL-ASK co-investment Platform, set up with a commitment of Rs 500 crore in November 2022.
For Shriram 122 West, the co-investment platform will put in invest about Rs 205 crore and the transaction is expected to be closed by the end of August.
With this, SPL-ASK platform would have used 60 percent of its committed capital and is evaluating further opportunities for investment during FY24, the company said.
The platform’s maiden investment was launched as premium plotted development, under the brand Shriram Pristine Estates.
The stock closed at Rs 68.40 on the National Stock Exchange, down 2.56 percent from the previous close.
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