Shriram Properties eyes 25% growth in housing sales in FY’24, says CMD

Real estate firm Shriram Properties is targeting 25 per cent growth in sales bookings in this financial year from a record Rs 1,846 crore in the previous year due to strong housing demand, CMDM Murali said.

In an interview with PTI, the company’s Chairman and Managing Director M. Murali said housing demand has been strong across all price categories, which has helped the company post record sales bookings in the 2022-23 fiscal year.

Shriram Properties achieved high all-time sales bookings of Rs.1,846 crore in the last financial year, up by 25 per cent from Rs.1,482.4 crore in the previous year, driven by higher volumes, better realization and change in product mix.

Asked about the target for sales bookings for this fiscal year, Murali said, “We are looking at growth of 20 percent in volume and 25 percent in value.”

Sales volume was 4.02 million square feet last fiscal year, a new record, compared to 3.8 million in 2021-22.

Average annual sales achieved grew 8 percent annually over the past fiscal year.

He added that the company will launch multiple housing projects in this fiscal year to take advantage of the increase in housing demand.

“The market is really good. There has been a very good demand for the middle-income and affordable segment. So, I expect the demand to continue for 3-5 years comfortably due to various factors. The macroeconomic situation is very good and the overall stability in the country is good,” Murali said. “.

Note that continuous growth in all industries helps the real estate sector to grow in an exceptional way.

On the financial performance front, the company’s net profit nearly quadrupled to Rs. 68.2 crore in the last financial year, from Rs. 18.03 crore in the previous year.

Total income grew to Rs.813.92 crore in the last financial year, from Rs.517.8 crore in the 2021-22 financial year.

Bengaluru based Shriram Properties, which was listed on stock exchanges in December 2021, is one of the leading residential property developers in South India. It has raised around Rs 600 crore through initial public offering (IPO).

Major markets for Shriram Properties include Bengaluru, Chennai and Kolkata which together account for approximately 85 per cent of its development activities.

Shriram Properties has delivered 36 projects so far, mostly in Bengaluru and Chennai. It is currently in development of 26 projects/phases and has another 25 projects in the pipeline.