Shriram Properties announces Q1’23 results

Bengaluru, August 13, 2022: Shriram Properties Ltd (“SPL”), announced its financial results for the first quarter ended June 30, 2022 (“Q1FY23”).

The Company has 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 Rs.313 crore, against Rs.248 crore in Q1FY22, up 26% YoY. Aggregate collections were higher by 34% YoY at Rs. 324 crores in Q1FY23. Construction spend were higher by 52% YoY at Rs.137 crores, demonstrating continued focus on project execution. 

The company has clocked 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. 

Q1 Revenue from operations nearly tripled on YoY basis to Rs. 122 crores on the back of income recognition in two key projects and 62% YoY growth in DM fee during Q1FY23. Total revenues also more than doubled to Rs.145.1 crores in Q1FY23, despite delayed revenue recognition in one key projects in Bengaluru. 

EBITDA has more than tripled to Rs.35.5 crores in Q1FY23 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. 

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Overall finance costs were lower by 13% YoY, reflecting reduced debt levels and ongoing refinancing efforts. Share of profits from JVs was remarkably higher, reflecting the start of revenue recognition on completion and handover at one of the JV projects in Chennai. 

The company was able to sustain the turnaround momentum seen in H2FY22. Net profit for the quarter stood at Rs.10.5 crores against full year profit of Rs.18 crores in FY22. 

The Company’s gross debt dropped 6% QoQ to Rs.451.2 crores in Jun’22, while net debt stood at Rs. 364.1 crores in Jun’22. Debt-Equity ratio stood at 0.32x. Post IPO, the Company has prepaid debt of ~Rs.200 crores and refinanced ~Rs.265 crores, apart fro m JV debt refinancing activities. 

Commenting on the company’s performance, 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. 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”.

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