Shriram Properties Limited (“SPL”), a leading residential real estate developer in South India, announced its financial results for the third quarter ended December 31, 2021. The Company has reported sales volumes of 1.03 msf for the quarter ended December 31, 2021 (“Q3FY22”), supported successful launches. Quarterly collections have grown 29% year-on-year (“YoY”) to Rs.314 crs while construction spending has gone up 94% YoY in Q3FY22, demonstrating focus on project execution.
The Company has reported strong financial performance for the quarter as well. Total revenues have gone up 38% YoY to Rs.130.1 crs in Q3FY22. EBITDA at Rs. 53.2 crs reflects a growth of 147% YoY during this period. In its maiden quarterly results post listing, the Company has reported turnaround in profitability and has reported positive net profit of Rs. 13.2 crs.
On aggregate basis, for the first nine months of FY22 (“9MFY22”), sales volumes stood at 2.58 msf, up 56% YoY, collections up 64% YoY at Rs. 843.6 crs and construction spending up 158% YoY to Rs. 422.8 crs. Projects under the Development Management (DM) model accounted for 38% of sales volumes, while share of plotted development in overall sales stood at ~25% during 9MFY22.
Commenting on the Company’s performance, Murali M, Chairman and Managing Director, SPL, said: “It is encouraging to see positive earnings momentum in the Company. Our focused efforts to ramp-up and build scale, leveraging strong operating platform built in recent years is yielding results.
Despite macro headwinds, the team has delivered strong volumes and stable quarterly sales run-rate, apart from ramp-up in execution levels significantly. Sector outlook is encouraging and we are well positioned to reap benefits of consolidating industry environment. Supported by strong project pipeline, we are confident of sustained growth momentum. Improving scale, operating leverage and rising share of DM income should help in improving profitability. We believe, we are on the right
