Shriram Properties down 5% after slipping into loss in Q2; rev down 32%

Shriram Properties shares slipped 4.9 per cent on Monday and logged an intraday low at Rs 96.4 per share, which was Rs 5.25 away from its 52 week low of Rs 91.15 on BSE. The scrip declined after the company posted a consolidated net loss (attributed to owners) of Rs 0.99 crore as compared to a net profit of Rs 20.15 crore a year ago. 

 

Around 11:18 AM, Shriram properties shares were down 2.02 per cent at Rs 99.4 per share on BSE. In comparison, the BSE Sensex was down 0.57 per cent at 77,138.88. The market capitalisation of the company stood at Rs 1,698.42 crore. The 52-week high of the stock was at Rs 147.5 per share on BSE.

 

The realty player on Thursday after market hours reported its September quarter results. The company's revenue from operation also fell 31.8 per cent to Rs 141 crore as compared to Rs 206.08 crore a year ago.

 

Meanwhile, Earnings before interest, tax, and depreciation amortisation (Ebitda) loss for the quarter under review stood at Rs 1 crore as compared to profit of Rs 40 crore a year ago. The Ebitda margins stood at -0.9 per cent as compared to 19.4 per cent a year ago. 

 

“Q2 FY25 is short-term aberration for the sector that witnessed reduced launches. Long term prospects for the sector remains positive and our strong market presence and success of our strategic initiatives will enable us in maintaining growth and delivering on promises even in the coming years," said Murali M, CMD, Shriram Properties.

 

Murali M added: Our solid project pipeline, a strong execution platform, and unwavering focus on costs and quality will contribute towards profitable growth even in the future.

 

Management commentary

 

As per the management, the company is on a steady growth path, focused on leveraging its strong operational base for profitable progress. Market conditions are rebounding well, particularly in the mid-market and midmarket premium segments, which offer promising long-term opportunities for sustainable growth. 

 

"With a strong project pipeline, the company is prepared for successful launches in core markets in the coming quarters and targeting strong growth in FY25, as per guidance. Continued efforts supported by timely project completions and handovers and steady revenue recognition, should further strengthen growth momentum," the filing read.

 

It added: The company's focus on cost control and scaling benefits is expected to sustain margins and profitability. It aims to continue its growth trajectory and create substantial value for stakeholders.

 

In the past one year, Shriram Properties shares have lost 4.6 per cent against Sensex's rise of 18 per cent.