Shriram Properties Ltd, which is celebrating 25 years, expects to quadruple its net profit to over ₹200 crore in FY27. It reported profit of ₹75 crore in FY24.
It will double annual sales to ₹5,000 crore by FY27 and triple revenue (income from unit handovers) to ₹3,000 crore, according to the company’s Executive Director and Group CEO, J Gopalakrishnan.
The company will scale up annual sales to 8-9 million sq ft (MSF) annually from 4.5 MSF by 2027, he told newspersons. “We are targeting to double future project inventory to 35 MSF in the next 18-24 months,” he added.
In FY24, the company’s annual sales value has grown by 5X to ₹2,362 crore and annual handover by 4X to over ₹3,000 crore, he said. The Return on Capital Employed has increased to 11 per cent from 3 per cent, he said on Friday.
The company plans capex of nearly ₹2,000 crore in the 3-4 years of which around 25 per cent will be the company’s contribution and the balance from partners, he said.
On the Chennai market, Gopalakrishnan said the company has completed over 7 MSF of development in the last decade.
Over the next three years, the company expects to sell 5-6 MSF in the city. The company built the largest multi-use project - Shriram Gateway - in Tamil Nadu with 4.60 MSF of commercial; 2.2 MSF of residential and 0.65 MSF of retail/hospital assets - all in one campus, he said.
Recently, the company launched Shriram 122 West at Mangadu near Porur, and launching three new projects under the code names Pudiya Chennai near Thirumazasai; Jackpot near Shriram OneCity at Valarpuram and 24 Carat as an integral part of Shiram Shankari.
Among these recent and upcoming launches, the company has over 4 MSF of saleable area and Gross Development Value of ₹2,500 crore to be sold in three years. “We will invest over ₹400 crore on construction of the three projects over the next 3 years and expect construction spending of over ₹750 crore across all projects in Chennai,” he added.
Across India, the company plans construction spending of ₹2,000 crore of which nearly 25 per cent will be from the company and the balance from external partners, he added.
The company’s Chairman and Managing Director, M Murali, said the company would soon foray in to Pune to enter the western market. It also plans to develop senior living space. There are plans to develop large projects like Shriram Gateway, he said.
Shriram Properties will embrace the new era under the banner SPLNxT to reposition the brand; enhance focus on mid-market and mid-premium segments, and accelerate growth, he said. “With the Centre’s vision of Viksit Bharat, and a strong economic growth, the next few years is going to be exciting as demand for residential houses will increase significantly,” he said.