Shriram Properties to invest Rs 750 cr on construction of housing projects

Shriram Properties will invest around Rs 750 crore this financial year in the construction of its ongoing and new residential projects as it looks to expand the business amid strong housing demand, said CMD M Murali.

Bengaluru-based Shriram Properties spent Rs 500 crore in the last financial year on construction work.

In an interview with PTI, Shriram Properties Chairman and Managing Director M Murali asserted that the company achieved a 25 per cent growth in sales bookings to reach an all-time high of Rs 1,846 crore in the last financial year, thanks to large turnover volumes. and achieve better prices.

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 volumes were 4.02 million square feet last fiscal year, a new record, versus 3.8 million square feet in 2021-22.

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

Murali said Shriram Properties is currently developing several housing projects and plans to launch multiple housing projects in this financial year to take advantage of the increase in housing demand.

Asked about construction spending, he said, “In the last financial year, we spent Rs. 500 crores and this year we are aiming for around Rs. 750 crores. This will be mostly in existing projects and some new projects that we will launch.”

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.

“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.

Shriram Properties, which was publicly listed in December 2021, is one of the leading residential property developers in South India. It has raised around Rs 600 crore through its 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.