Any current/future new fundraising through debt or equity?

No explicit mention of new fundraising through debt or equity in the current quarter. The company has successfully lowered gross debt marginally from INR 631 crores to INR 610 crores. Debt-equity ratio is low at 0.37, expected to be further reduced to 0.25-0.3 levels by year-end through cash from operations and land monetization. Land monetization efforts, such as West Bengal transaction resolution (INR 240-250 crores liability) and Chennai Mall land monetization, aim to positively impact cash flow. Company completed two project acquisitions investing about INR 44 crores. No direct announcemen

Any current/future capex/capital investment/strategic investment?

Shriram Properties is focusing on expanding its project pipeline aggressively to support a 25% CAGR over the next three years. They plan to add another 15 to 18 million square feet of pipeline in the next 18-24 months to ensure robust launch capability. Two new projects concluded recently: one JDA in North Bangalore and one own project near Electronic City, with a combined saleable area of 0.78 million sq.ft worth around INR 600 crores. Pune project launch is deferred due to approval delays but expected earliest by late Q2 or Q3 FY25. Capital investment is aligned with launching new projects a

Future growth expectations in sales/revenue/volumes?

Targeting 20%-25% CAGR growth over the next three years (FY25-FY27). Planning to scale sales volume to approximately 7.5 to 8 million square feet by FY27-28. Expect to sell around 15 to 17 million square feet total volume in the next 30-36 months. Will add an additional 15 to 18 million square feet to the project pipeline in the next 18-24 months to support launches. Confident of achieving INR 2,750 to 3,000 crores in sales value and INR 1,700 to 1,800 crores in collections for the full year. Anticipating robust income recognition from ongoing and sold projects over the next three years. Expec

Future growth expectations in earnings/operating earnings/profits/EPS?

Shriram Properties targets a 25% CAGR growth over the next three years, focusing on mid-market and premium mid-market segments. They aim to achieve 7.5 to 8 million square feet in development volume by FY27-28. Sales volume over the next 30-36 months is expected to be 15-17 million square feet with plans to add 15-18 million square feet of pipeline. About 70% of income over the next three years will come from projects already sold as of March 31, 2024. EBITDA margins are expected to stabilize in the mid-20% range. PAT margins are projected to be stable at 9%-11%. Income recognition and handove

Current/ Expected Orderbook/ Pending Orders?

The current project pipeline stands at approximately 42 million square feet. Within this, about 24 million square feet are ongoing projects and around 18 million square feet are upcoming launches. To sustain a 20% CAGR and robust launch capacity, the company aims to add another 15 to 18 million square feet of new pipeline over the next 18-24 months. Several projects are at advanced negotiation stages, expected to be announced in the coming quarters. The company plans to sell around 15 to 17 million square feet over the next 30-36 months. This pipeline addition is critical to support the target

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Shriram Properties LtdQ2 FY24Realty

Shriram Properties Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹91.6P/E: 20.2Market Cap: ₹1.4K CrSector: Realty

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→Targeting 20%-25% CAGR growth over the next three years (FY25-FY27).
→Planning to scale sales volume to approximately 7.5 to 8 million square feet by FY27-28.
→Expect to sell around 15 to 17 million square feet total volume in the next 30-36 months.
→Will add an additional 15 to 18 million square feet to the project pipeline in the next 18-24 months to support launches.
→Confident of achieving INR 2,750 to 3,000 crores in sales value and INR 1,700 to 1,800 crores in collections for the full year.
→Anticipating robust income recognition from ongoing and sold projects over the next three years.
→Expect steady growth and improved profitability focused on mid-market and mid-market premium segments.
→New project launches and handovers are expected to contribute to revenue momentum in Q2 onwards.

Margin guidance

Category 3

→Shriram Properties targets a 25% CAGR growth over the next three years, focusing on mid-market and premium mid-market segments.
→They aim to achieve 7.5 to 8 million square feet in development volume by FY27-28.
→Sales volume over the next 30-36 months is expected to be 15-17 million square feet with plans to add 15-18 million square feet of pipeline.
→About 70% of income over the next three years will come from projects already sold as of March 31, 2024.
→EBITDA margins are expected to stabilize in the mid-20% range.
→PAT margins are projected to be stable at 9%-11%.
→Income recognition and handovers will gain momentum especially in Q2-Q4 of FY25.
→New launches and strong pipeline add growth visibility, with continued focus on operational excellence to meet market expectations.

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Fundraise plans

→No explicit mention of new fundraising through debt or equity in the current quarter.
→The company has successfully lowered gross debt marginally from INR 631 crores to INR 610 crores.
→Debt-equity ratio is low at 0.37, expected to be further reduced to 0.25-0.3 levels by year-end through cash from operations and land monetization.
→Land monetization efforts, such as West Bengal transaction resolution (INR 240-250 crores liability) and Chennai Mall land monetization, aim to positively impact cash flow.
→Company completed two project acquisitions investing about INR 44 crores.
→No direct announcement of raising fresh equity or debt; focus is on generating free cash flow (~INR 300 crores over next three years) from ongoing projects and monetizations for operational needs.

Order book

→The current project pipeline stands at approximately 42 million square feet.
→Within this, about 24 million square feet are ongoing projects and around 18 million square feet are upcoming launches.
→To sustain a 20% CAGR and robust launch capacity, the company aims to add another 15 to 18 million square feet of new pipeline over the next 18-24 months.
→Several projects are at advanced negotiation stages, expected to be announced in the coming quarters.
→The company plans to sell around 15 to 17 million square feet over the next 30-36 months.
→This pipeline addition is critical to support the target volume growth, moving from 4.5 million sq. ft. last year to 7.5–8 million sq. ft. by FY27-28.
→Project launches have been impacted by delays, especially Pune where approvals are awaited, likely pushing launch to Q3 FY25.

Capex plans

Yes

→Shriram Properties is focusing on expanding its project pipeline aggressively to support a 25% CAGR over the next three years.
→They plan to add another 15 to 18 million square feet of pipeline in the next 18-24 months to ensure robust launch capability.
→Two new projects concluded recently: one JDA in North Bangalore and one own project near Electronic City, with a combined saleable area of 0.78 million sq.ft worth around INR 600 crores.
→Pune project launch is deferred due to approval delays but expected earliest by late Q2 or Q3 FY25.
→Capital investment is aligned with launching new projects after achieving sales visibility (around 30% pre-sales before starting construction).
→Free cash flow of about INR 300 crores is anticipated over FY25-FY27 period after considering project investments.
→No current plans to enter new geographies like Mumbai, but Pune market is being actively developed.

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