Shriram Properties Ltd. has reported a consolidated net profit of ₹10.48 crore for the quarter ended June on better sales.
The firm had posted a net loss of ₹3.67 crore in the year-earlier period.
Total income more than doubled to ₹145.11 crore in the first quarter of this fiscal, from ₹60.9 crore in the corresponding period of the previous year, according to a regulatory filing.
In a statement, the company said it had reported 20% growth on a year-on-year basis 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.
Sales bookings rose 26% to ₹313 crore during April-June, from ₹248 crore in the year-earlier period.
The construction spend was higher by 52% year-on-year at ₹137 crore.
Price improvement was seen across all product segments. The company expects the price curve to improve further on the back of strong demand, cost considerations and impact of industry consolidation.
The company’s gross debt dropped 6% quarter-on-quarter to ₹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 prepaid debt of about ₹200 crore and refinanced about ₹265 crore, apart from JV debt refinancing activities,” the company said in the statement.
With all its ongoing projects nearly on track, the company said it expected to handover about 10 million square feet during FY23-25.
“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,” CMD M. Murali said. He said the company would remain focused on profitable growth by leveraging the strong project pipeline and market opportunities.
The company has added eight projects to pipeline, aggregating to about 7 million square feet development potential since March 2022.
Shriram Properties Ltd. is one of South India’s leading residential real estate development companies, primarily focused on the mid-market and affordable housing categories.
Its key markets include Bengaluru, Chennai and Kolkata, which together account for more than 85% of its development activities.
It has delivered 32 projects with a saleable area of 19 million square feet.
The company has a strong development pipeline comprising 53 projects, with an aggregate development potential of 53 million square feet as of June 30, 2022.