Shriram Properties reports turnaround Q2 performance, sales volume rises 52%

On a consolidated basis, Shriram Properties' net profit stood at Rs 19.5 crore in Q2 FY23 as against net loss of Rs 23.2 crore in Q2 FY22.

Revenue from operations surged 240.13% to Rs 258.5 crore in Q2 FY23 over Q2 FY22, supported by increased handover momentum in completed projects and receipt of OC in certain key projects.

The company has reported sales volumes1 of 1.01 msf in Q2, up 52% QoQ, supported by two new launches and strong sustenance sales. Aggregate sales value stood at Rs.435 crore, up 39% QoQ, in Q2FY23. Aggregate collections and construction spend remained robust at Rs 315 crore and Rs 135 crore respectively.

Pre-tax profit was at Rs 18.1 crore in Q2 FY23 as against pre-tax loss of Rs 24.1 crore in Q2 FY22. EBITDA for the quarter stood at Rs 51.3 crore, a growth of 44% QoQ and 138% YoY. Sharp rise in revenue recognition on completion and handover of projects and slower growth in operating expenses helped.

Total expense rose 205.6% YoY to Rs 226.46 crore in Q2 FY23. Employee expenses stood at Rs 20.8 crore (up 15.87% YoY) in the second quarter.

Net cash generated from operating activities stood at Rs 5.7 crore in six months ended 30 September 2022 compared with Rs 54.6 crore in six months ended 30 September 2021.

Murali M, chairman and managing director, said: "We are encouraged by the strong operational and financial growth as well as sustained earnings growth momentum seen since listing. This is reassuring and demonstrates the strength of our team and the operating platform. We will remain focused on profitable growth by leveraging the strong project pipeline and market opportunities. Improving operating leverage and stabilised DM business model should add further strength. We believe, we are on the right path to delivering superior shareholder value in the coming years."

Shriram Properties is one of South India's leading residential real estate development companies, primarily focused on the mid-market and affordable housing categories.

The scrip was down 0.07% to Rs 76.60 on the BSE.

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