Shriram Properties Targets Doubling Net Profit and Sales Bookings by FY29
Shriram Properties Sets Ambitious FY29 Growth Targets
Realty developer Shriram Properties Ltd is targeting doubling its net profit and sales bookings by FY29, as it ramps up project completions and expands its development pipeline, CMD Murali M said on Wednesday.
Financial Targets and Revenue Recognition
The company, which reported a consolidated net profit of Rs 100.81 crore on sales bookings of Rs 2,354 crore in FY26, is targeting doubling realisable income of around Rs 3,000 crore by FY29, up from about Rs 1,400 crore in FY26. The higher profit target is expected to be supported by a substantial increase in revenue recognition as projects currently under construction move towards completion.
Development Pipeline and Scale
Shriram Properties has a construction pipeline of around 50 million sq ft through FY29, with about 20 million sq ft planned for development over the next 18 months. The company currently has a major presence in Chennai, Bengaluru and Pune and has started exploring the Mumbai market.
Bengal Operations and Commercial Expansion
Its Bengal business is anchored by the Shriram Grand City township at Uttarpara in Hooghly district. The company had acquired the land parcel from Hindustan Motors for around Rs 290 crore nearly two decades ago. Following a legal settlement with the West Bengal government involving transfer of 42 acres, the company has about 272 acres in the parcel, of which around 65 acres have so far been utilised across five projects. These include two mass residential projects comprising around 5,700 units, 198 villas and about 300 plots.
The company has around 140 acres available for incremental mixed-use commercial development, with potential development of 10-11 million sq ft and an estimated investment of around Rs 6,000 crore. In a potential shift from its traditional business model of developing and selling properties, Shriram Properties is also considering developing and owning a premium shopping mall at Uttarpara, which could create a rental-income stream.
Company Profile and Track Record
Shriram Properties was founded in 1995 and is headquartered in Bengaluru, India. With a portfolio of 51 thoughtfully developed projects spanning over 31.5 million square feet, primarily in Bengaluru, Chennai, and Kolkata, the company recently also entered the Pune market to explore new growth opportunities.