Shriram Properties aims for Rs.5,000 crore Annual Sale with Rs.250 crore Profit

Bengaluru based realty firm Shriram Properties, aims to double its sales to Rs.5,000 crore, triple its income to Rs.3,000 crore, and quadruple its profits to over Rs.250 crore within the next three years, by FY27, according to a statement from the company's top executive on August 21.

Gokul Krishnan, the Executive Director and Group CEO of Shriram Properties, stated that they planned to increase their annual sales from 4.5 million square feet the previous year to 8-9 million square feet. He mentioned that, over the course of three years, they would have sold close to 20 million square feet cumulatively. Of this total, he noted that Bengaluru would account for 7-8 million square feet, Chennai would contribute about 5-6 million square feet, and Kolkata would represent approximately 3-4 million square feet. 

In the fiscal year 2023-24, Shriram Properties reported a net profit of Rs.75 crore and a total income of Rs.987.35 crore. During this 12-month period, the sales value reached Rs.2,362 crore.

As Shriram Properties approaches its 25th anniversary, it introduced a new brand identity—SPLNxT—with a renewed emphasis on the mid-market and mid-premium segments. Moving forward, more than 90% of the brand’s portfolio, up from 67% previously, will consist of mid-market and mid-premium projects, while the company will also maintain its focus on luxury projects.

Shriram Properties classifies the mid segment as homes priced between Rs.50 lakh and Rs.1.5 crore, while the mid-premium bracket covers homes priced between Rs.1.5 crore and Rs.2 crore.

Gokul Krishnan commented, “Competition has become more intense. To thrive in this environment, we must change. SPLNxT therefore represents the essence of this transformation that we’re embarking on.”

He said, that the company has expanded its presence to five cities, delivering about 44 projects spanning 24.4 million square feet. The realty firm is targeting on delivering about 44 projects spanning 24.4 million square feet. Currently they are eyeing on western market with the first project slated to be launched in Pune.

The company informed that they are planning to launch two mobile applications, namely Shriram Parivaar and Shriram Synergy for the company’s customers and channel partners, respectively.

Akash Murali, AVP of Strategy at Shriram Properties, indicated that the apps are anticipated to be launched within the current quarter.

Currently, Shriram Properties has 42 projects in the pipeline, offering a development potential of 42 million square feet, with 24 million square feet already in various stages of development. Krishnan emphasized that the company aims to double its future project inventory from 18 million square feet to over 35 million square feet within the next 18-24 months.

The company estimates needing Rs.300-500 crore for its three-year growth plan and believes that internal funds will be sufficient to cover this requirement. According to a company spokesperson, the joint development model could represent 50% of the company's portfolio during this period.

Additionally, Shriram Properties is set to launch three projects in Bengaluru within the current quarter.