An impressive 58.74% growth in net consolidated profit was recorded for Q1 FY24 by Shriram Properties, a well-known real estate company. In comparison to the same quarter the prior fiscal year, the company's profit after tax increased to Rs 16.62 crore from Rs 10.47 crore. At Rs 157.17 crore, net consolidated total income increased by 8.31%. In the third quarter, Shriram Properties sold 0.78 million square feet for a total of Rs 459 crore. The company's gross debt dropped by 12% to Rs 488 crore, and the acquisition of Shriram 122 West is likely to be completed.
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Shriram Properties has reported a remarkable 58.74% surge in its net consolidated profit during Q1 FY24. The company's profit after tax rose to Rs 16.62 crore, a significant increase from the Rs 10.47 crore it registered in the corresponding quarter of the previous fiscal. Its net consolidated total income stood at Rs 157.17 crore in Q1 FY24, reflecting an 8.31% growth compared to Rs 145.11 crore in the similar quarter last year.
The company's board of directors approved the appointment of Ashish P Deora as an additional director (non-executive-non-independent). Deora is the founder of Aurum Ventures, the parent company of Aurum PropTech. This acquisition has enabled Aurum Ventures to acquire 14.37% of the equity capital in Shriram Properties.
During Q1 FY24, Shriram Properties achieved sales volumes of 0.78 million sq ft, marking a 17% year-on-year increase, with sales values amounting to Rs 459 crore, a significant 47% year-on-year growth. The quarter saw a 21% contribution from plotted development and 12% from the DM (Development Management) model in terms of sales volumes. The average realization for constructed units experienced an upsurge, reaching Rs 5,463 per sq ft in Q1 FY24, reflecting a 16% year-on-year increase from Rs 4,694 per sq ft in Q1 FY23. The average realization for plotted units stood at Rs 3,045 per sq ft.
The company's total operating expenses saw a 5% year-on-year decrease, amounting to Rs 103.8 crore. This reduction was supported by a 15% decrease in the cost of revenues and a 2% decrease in employee costs. Shriram Properties anticipates a decline in the cost of debt to approximately 11.5% in Q2 FY24, a drop from 11.9% in FY23 and 13.7% in FY21, given the upward trajectory of benchmark rates. The company's gross debt demonstrated a 12% decrease, amounting to Rs 488 crore, while the net debt stood at Rs 403 crore by the end of June 2023.
Shriram 122 West is poised to become the second investment made by the SPL-ASK Co-investment Platform, established with a capital commitment of Rs 500 crores in November 2022. For the Shriram 122 West acquisition, the co-investment platform will invest approximately Rs 205 crore. This transaction is projected to be finalized by the end of August 2023. With this development, the SPL-ASK platform will have utilized 60% of its committed capital and will continue to evaluate further investment opportunities throughout FY24.
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