Shriram Properties Announces Strong Quarterly Performance

Shriram Properties (“SPL”) has announced its financial results for the quarter (“Q3FY25) and nine months ended December 31, 2024 (“9M FY25”).

Operational Highlights

SPL reported resilient quarterly sales volumes of 1.26 msf (+22% QoQ +14% YoY) and sales values of  Rs. 670  crores  (+18%  QoQ  +14%  YoY)  in  Q3FY25.  Overall  encouraging  sales performance, viewed in the context of external-led challenges for the second consecutive quarter that resulted in deferred launches. SPL achieved sales volumes of 3.0 msf in 9MFY25 and are set to grow strongly in Q4, on the back of new launches in Pune and Bangalore.

Sequentially strong growth in sales during Q3 is driven by impressive contribution from new projects launched towards end of Q2 (viz., Shriram Serenity at Bengaluru, Shriram Swargam at Chennai and Shriram Symphony at Kolkata) and robust sustenance sales in ongoing projects. With new project approvals progressing well now, the Company expects strong momentum in Q4.

Gross collections were stable at Rs. 346 crores in Q3 and Rs. 1,030 crores for 9MFY25. While collections benefitted from strong construction momentum, growth would have been stronger but for the impact of deferred collection from handovers and new launches.

On customer handovers, that enable income recognition, SPL achieved 630+ unit handover in Q3 and 1750+ units in 9MFY25. Overall handover momentum and resultant revenue recognition was below expectation during Q3, due to delay in receipt of regulatory clearances (OC/CC) for certain key projects. With these nearly resolved, SPL expects to handover record number of units during Q4, which should fuel robust income recognition during Q4FY25.

On the business development front, the Company concluded 3 new projects during Q3. SPL acquired development rights in a land near Yelahanka in North Bangalore, a land near Electronic City, Bangalore and a land parcel in Koyambedu, Chennai with an aggregate development potential of over 1.1 msf and gross development value of around Rs.850-1,000 crores. The Company is focused on near doubling of its new project pipeline over the next 12-18 months.

Significant highlights of Q3 FY25 Results are as follows:

• Satisfactory financial performance despite deferred revenue recognition in 2 key projects due to delayed receipt of regulatory clearances (OC/CC). These projects carry income recognition potential of over Rs. 500 cores and is now deferred to Q4, thus impacting revenues and earnings.
• SPL reported total revenues of Rs. 179.9 crores in Q3, driven by handovers in recently completed projects. Revenue growth would have been strong but for deferment two project handover/revenue recognition to Q4.
• Despite constrained revenue base, overall profitability remained stable – with gross margins at around 31%, EBIDTA margins of 24%, PBT margins of 8% and PAT margins of 7%. This reflects the strong profitability profile of ongoing/recently completed projects.
• Net debt dropped to Rs. 401.0 crores at the end of Q3, and net debt-equity ratio stood low at 0.31:1, which is amongst the lowest in the industry.
• Cashflows remained strong during the quarter. Cash from operations positive at Rs. 59

Crores and the Company made new project investments of Rs. 42 crores during Q3 FY25.

On a YTD basis, SPL reported revenues of Rs. 545.9 crores. Deferral of certain project handovers and resultant income recognition had impact on growth during the period. The Company reported EBIDTA of Rs. 110.8 crores and consolidated PAT of Rs. 29.6 crores for 9M FY25.