Shriram Properties reports record financial performance in FY24

Shriram Properties Limited (SPL) has announced its audited financial results for the fourth quarter (Q4FY24) and the full year (FY24), marking a period of significant operational and financial achievements. For FY24, SPL achieved a record-high sales volume of 4.59 million square feet (msf), with sales values reaching a new peak of Rs.2,362 crores, a 28% year-over-year increase. This performance was bolstered by the launch of six projects, adding approximately 3 msf to the market.

Shriram Properties Financial Highlights and Strategic Growth

The company reported gross collections of Rs.1,391 crores for the year, reflecting a 16% increase from the previous year, driven by strong construction progress and customer collections tied to project milestones. Notably, SPL completed eight ongoing projects totaling 3.8 msf, several ahead of RERA timelines, and handed over more than 3,000 homes and plots, marking a 50% increase year-over-year.

The strategic move to upscale market segments over the past two years has yielded results, with overall portfolio average realisation improving by 12% year-over-year, and mid-market units seeing a 20% increase. The positive market undercurrent has encouraged SPL to continue enhancing its pricing strategies in its core markets.

Quarterly performance for Q4FY24 was equally impressive, with sales volumes of 1.56 msf, up 19% year-over-year, and sales values rising to Rs.708 crores, a 43% increase. Gross collections for the quarter grew by 10% to Rs.336 crores, and customer handovers reached 1,396 homes and plots.

Shriram Properties reports record financial performance in FY24

Notable Project Launches and Market Response

During Q4, SPL launched two major projects: “Shriram Sapphire” near Electronic City, Bangalore, a 400-unit residential project, and “Shriram Shubham,” a 0.46 msf plotted development in Chennai. Shriram Sapphire, launched under the codename “Ultimate,” saw nearly 70% of its project area sold within the first week of launch, and about 80% within a month, indicating strong market demand.

Fiscal Strength and Market Optimism

SPL’s financial metrics for FY24 showed robust growth, with total revenues increasing by 21% year-over-year to Rs.987 crores, driven by successful project completions and revenue recognition in key projects like Shriram Liberty Square and Shriram Park 63 – 1B. EBITDA for the year stood at Rs.223 crores, up 22% from the previous year, maintaining stable margins of 23%.

The company’s net profit rose to Rs.75 crores, a 10% increase from FY23, and consolidated cash flows from operations nearly doubled to Rs.227 crores. Notably, SPL has realized free cash flows of Rs.156 crores before new project investments, up from Rs.116 crores in FY23, underlining its financial resilience and capability to fund future growth.

Leadership’s Perspective

Murali M, Chairman and Managing Director of Shriram Properties, commented on the results: “Our record-breaking results are a testament to our commitment to growing the business profitably. Despite certain external challenges, our teams have delivered on promises, and with our strong market presence and strategic initiatives, we are well-positioned to sustain growth and profitability.”