Shriram Properties Record High Sales Volume, Value, Collections in FY24

Bengaluru, May 29, 2024: Shriram Properties Limited (“SPL”) announced its audited financial results for the quarter (Q4FY24) and the full year (FY24) ended March 31, 2024. 

Operational Highlights

SPL has clocked record high sales volumes of 4.59 msf, supported by 6 project launches that provided new supplies of around 3 msf in FY24. Sales values hit a new high of Rs.2,362 crores in FY24, up 28% YoY, supported by higher volumes and better realization. Sales momentum remained strong despite external factors led launch deferrals witnessed during Q2 & Q3. 

FY24 gross collections stood at Rs.1,391 crores, up 16% YoY, reflecting strong construction progress and consequent milestone-led customer collections over the quarters. SPL achieved completion in 8 ongoing projects with aggregate development area of 3.8 msf, several of them ahead of RERA timelines. SPL handed over 3,000+ homes/plots during FY24 (+50% YoY).

Overall portfolio average realisation improved 12% YoY, while average realisation for mid-market units were higher by 20% YoY. 

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Q4 sales stood at 1.56 msf (+19% YoY) and sales value rose to Rs.708 crores (+43% YoY) in Q4FY24. Gross collections grew by 10% YoY to Rs. 336 crores and customer handovers stood at 1,396 homes/plots in Q4FY24. 

During the last quarter, SPL launched 2 projects viz., “Shriram Sapphire” (a 400-unit residential project with 0.5 msf aggregate saleable area near Electronic City, Bangalore) and “Shriram Shubham” (a 0.46 msf plotted development opportunity at Chennai). Shriram Sapphire was launched under the codename “Ultimate” that received exceptional response with nearly 70% of project area sold within first week of launch and ~80% of project area sold within a month. 

Financial Performance Highlights

Summary of significant highlights of FY24 results are as follows:

• Total Revenues have grown 21% YoY to Rs. 987 crores on the back of successful completion and revenue recognition in certain key projects viz., Shriram Liberty Square (Bangalore), Shriram Park 63 – 1B (Chennai), Shriram Chirping Woods T5 (Bangalore) Shriram Grand One (Kolkata). 
• EBITDA for the full year stood at Rs. 223 crores, compared to Rs.183 crs in FY23, reflecting a growth of 22% YoY.  EBITDA margins remained stable at 23% in FY24. 
• Interest expenses remained flat at Rs.74 crores, despite absorption of interest costs associated with the re-acquisition of JV economic interest in Shriram Park63 from Mitsubishi Corporation during Q3FY24. Overall finance cost however is higher by 11% YoY, due to certain one-time interest costs associated with the acquisition of Shriram 122 West in Q1FY24. 
• SPL’s cost of debt dropped further to 11.6%, as compared to 11.9% in FY23. It compares favourably with average cost of 13.7% in FY21 and such steep reduction is despite the RBI rate hike impact (approx. 200bps) during this period. The cost of incremental debt is now in the 10.0% – 10.5% range, which is encouraging. 
• Net debt remained almost flat at Rs. 441 crores and debt-equity declined marginally to 0.35:1, which is amongst lowest in the industry.
• Net profit improved to Rs.75 crores in FY24, compared to Rs. 68 crores in FY23, up 10% YoY. 

• Consolidated cashflows from operations nearly doubled to Rs.227 crores in FY24. The Company has realised free cashflows (FCF) before new project investments of Rs. 156 crores in FY24, compared to Rs.116 crores in FY23. Notably, supported by project completions, the Company has unlocked free cashflows of around Rs.272 crores in last two years, which has played significant role in augmenting new projects towards sustaining growth momentum in the future. 

On a quarterly basis, Total Revenues have more than doubled to Rs.358 crores while EBTIDA has grown by an impressive 45% YoY to Rs.66 crores in Q4FY24. Net profit for the quarter stood at Rs. 20 crores, up 28% YoY in Q4FY24.  

Summary financial highlights are as below:

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Commenting on the performance, Murali M, CMD, Shriram Properties said: “Our record-breaking results are a testament to our commitment to growing the business profitably, year-after-year. We have achieved significant milestones during the year, notwithstanding certain external-led delays in receipt of approvals and OCs. Our teams have worked diligently to overcome challenges and deliver on promises. Supported by our strong market presence and success of strategic initiatives, we are confident of sustaining growth and profitability in the coming years. Our robust launch pipeline, strong execution platform coupled with continued focus on cost management and commitment to delivering quality will support towards this end”.