Shriram Properties jumps 5% after land parcel sale to healthcare group

Shares of Shriram Properties rose 5 per cent at Rs 109.45 a piece on the BSE in Tuesday’s intraday trade. Shriram Properties share price jumped after sale of 3.9 acre land parcel in Chennai to a large healthcare and educational group in South India.

 

The company, through its wholly-owned subsidiary SPL Shelters Private Limited, owns a 3.9-acre land parcel approved for retail space development.  Strategically located on GST Road, this land is adjacent to a fully operational 4.0 msf office complex and a 2.0 msf residential development, "Shriram Park 63," presenting substantial opportunities for retail and commercial expansion, the company said in a statement on Monday.

 

 

However, given the company’s predominant focus on residential real estate development activities, SPL has decided to monetise the land through divestment of its equity holding in the wholly owned subsidiary. 

 

“This transaction marks a significant step in the company's plan to unlock value from existing non-core land parcels and redeploy capital for growth funding needs. We believe this move reinforces our commitment to prudent financial management and allows us to focus on accelerating growth in the residential projects across our portfolio," said Murali M, CMD of SPL.

 

Shriram Properties reported a consolidated net loss of Rs 0.99 crore for the September quarter of financial year 2024-25, a significant decline from a net profit of Rs 20.15 crore in the same period last year. Revenue from operations also dropped 31.8 per cent to Rs 141 crore compared to Rs 206.08 crore a year ago. 

 

The quarter's EBITDA showed a loss of Rs 1 crore, in contrast to a profit of Rs 40 crore in the previous year, with EBITDA margins slipping to -0.9 per cent from 19.4 per cent year-on-year.

 

At 9:44 AM, the stock price of the company advanced by 2.64 per cent at Rs 106.95 a piece on the BSE. By comparison, the BSE Sensex was down 0.67 per cent to 77,721.93 level.

 

Shriram Properties specialises in real estate construction and property development services, focusing on mid-market and affordable housing. It is a leading residential real estate developer in South India, ranking among the top five in terms of units launched across major cities such as Bengaluru, Chennai, and Hyderabad.