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SPL reports good Q2 sequential growth 

Bengaluru, November 3, 2022: Shriram Properties (“SPL”) reported strong growth in sales for the quarter ended September 30, 2022 (“Q2FY23”).

The Company has achieved sales volumes of 1.01 msf in Q2FY23, up 52% QoQ. Aggregate sales value stood at Rs. 435 crores in Q2, reflecting a growth of 39% QoQ, compared to Rs. 313 crores in Q1FY23. Projects under the Development Management (DM) accounted for 30% of sales volume while share of plotted development stood at 32% in Q2.

On a half yearly basis, for H1FY23, the Company reported sales volumes of 1.67 msf, compared to 1.56 msf in H1FY22, reflecting a growth of 7% YoY. Aggregate sales value grew 27% YoY to Rs.747 crores in H1FY23.  

Aggregate collections stood at Rs.315 crores for the quarter, while construction spending stood at Rs.135 crores in Q2. On half yearly basis, aggregate collections were higher by 13% YoY at Rs.639 crores in H1, while aggregate construction spending remained nearly flat at Rs. 272 crores, amidst stronger and unseasonal monsoon rains during H1FY23. Activity levels remain robust and overall spending is expected to rise strongly in the traditional strong periods of H2FY23.

The Company has handed over 700 completed units to customers during H1 and is on-track to complete and handover more than 2,000 units to customers during FY23.

Average realisation for constructed units was higher at Rs.4,924/sqft in Q2FY23 as compared to Rs.4,897/sqft in Q1FY22 and materially above Rs.4,622/sqft achieved in FY22. Average realisation for plotted development were marginally lower at Rs.3,011/sqft, largely reflecting change in geographical mix of plotted units.

Commenting on the performance, M Murali, Chairman and Managing Director, Shriram Properties Limited said: “We are encouraged by the strong performance on key operating parameters and expect to see further momentum in the seasonally strong periods of H2FY23. We are on track to deliver full year targets in terms of sales volumes, collection and construction, apart from profitability in line with guidance.”