Strong operational performance by Shriram Properties for Q1

21 Jul 2022 , 12:51 PM

For the quarter that ended on June 30, 2022 Q1, Shriram Properties (SPL) announced impressive growth in sales, collections, and construction.

The company increased its sales by 20% year over year (YoY) to 0.66 million square feet in the first quarter of FY23 from 0.55 million square feet in the first quarter of FY22. In Q1, total sales value increased from Rs248 crore in Q1FY22 to Rs313 crore, a 26% YoY increase.

In comparison to Q1FY22, when total collections were Rs242 crore, they increased by 34% year over year to Rs324 crore in Q1FY23. Strong collections are a reflection of the company's focus on execution progress on the ground.

The total amount spent on construction increased by 52% YoY to R137 crore from Rs90 crore in Q1 FY22. With 4,000 laborers on the job, the overall construction momentum remained robust and should support the prompt completion of ongoing projects and collection momentum moving forward.

In Q1FY23, the average realization increased to Rs4,694 per sq ft from Rs4,363 in Q1FY22, an increase of 8% year-on-year. In Q1FY23, unit realization for plotted developments increased by 6% year over year while it was practically unchanged for constructed units.

The company often experiences a slow start to its fiscal year and picks up steam later on thanks to favourable months and the holiday season. The tendency is especially pronounced in the company's primary markets of mid-market and inexpensive homes.

Throughout the remaining months of FY23, SPL plans to launch 16 projects totalling 8.0 million square feet in saleable space, comprising 13 new projects and 3 new phases of its ongoing projects.

As of the conclusion of the quarter, SPL had almost no inventory of finished projects. In its ongoing initiatives, around 85% of the inventories have already been sold. In order to maintain its growth pace and release remaining inventories in ongoing projects, the company is therefore concentrating on fresh releases.

The Company is concentrating on quickening ramp-up and finishing its ongoing projects on schedule. With a total saleable area of 51msf across 50 projects, it has a robust pipeline. Over the next three years, SPL plans to complete and deliver more than 10 msf.