Shriram Properties sees 20 per cent revenue growth in FY24

May 30, 2023

Shriram Properties expects to post 20 per cent revenue growth in FY24 on the back of higher revenue recognition, as projects launched two-four years back are completed and delivered.

The company also expects to launch 11-13 projects in the current fiscal year, about 5 million square feet in pre-sales.

“The current financial year is looking very good. With projects launched 3-4 years ago coming up for completion, revenue recognition will be good for the year,” Chairman and Managing Director MM Murali told businessline.

The Bengaluru-based real estate developer ended FY23 with a near four-time growth in net profit at Rs 68.3 crore, while revenue went up 57 per cent to Rs 814 crore. It recorded pre-sales of 4 msf in the year, up 7 per cent, with sales value rising a fourth to Rs 1,846 crore. Its collections for the year were at Rs 1,194 crore, lower than the Rs 1,263 crore collected a year ago.

Also read: Shriram Properties sees no impact of job losses, high mortgage rates, on housing demand

Despite a strong pipeline, the company launched only seven projects during the year under review, with two launches deferred to the current fiscal year. It has a pipeline of 51 projects, with 53 msf of development potential.

The company reported a steep fall in net profit and revenue for the fourth quarter of FY23 on lower revenue recognition. Murali said it was difficult to recognise revenue on a quarterly basis in the real estate sector, and the right way to look at it would be the performance for the entire year.

He said housing sector demand was still buoyant, with conversion rates of 18-20 per cent compared to 12-14 per cent in the past.

The company took price increases ranging from 3 to 22 per cent across projects and the average price realisation was 8 per cent higher on year. The company expects to take another 10 per cent price increase in the current year.

On being asked whether a rise in property tax rates by the new Congress government in the state would have an impact on demand, Murli said Bengaluru is a city ‘which is beyond political influences’. He affirmed that it would not have any significant impact on housing demand.

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