Shriram Properties Ltd on Wednesday reported a 17 per cent decline in profit after tax at Rs 18.48 crore in the quarter ended December 2023 and announced its entry into the Pune market with a real estate project worth Rs 1,300 crore. The company's net profit stood at Rs 22.36 crore in the year-ago period.

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The total income rose to Rs 240.57 crore in the third quarter of this fiscal, from Rs 222.01 crore in the corresponding period of the previous year, according to a regulatory filing.

Shriram Properties said it is planning an entry into the Pune region, and has signed a Development Management (DM) agreement for the development of a residential project in Undri, Pune.

The company has secured development rights under the DM model, and the project envisages the development of over 1.7 million square feet of residential area and 0.3 million square feet of commercial area.

The project has sales value potential of over Rs 1,300 crore and is to be executed over the next 3-4 years, Shriram Properties said.

"We are excited to announce our entry into the Pune markets. Given the strong familiarity to the 'Shriram' brand and our proven track record, we are confident of successful entry and expansion into this large, growth market," said M Murali, CMD of Shriram Properties.

Murali further noted that "our performance for the year so far is satisfactory. The third quarter witnessed muted growth due to certain adversities but are fully equipped to recoup lost impact during Q4, FY24". Murali expressed confidence regarding the company's growth this fiscal and over the next few years.

"Given the positive market dynamics and strong pipeline, we remain confident of sustaining profitable growth and delivering superior returns to our stakeholders," he added.

Shriram Properties Ltd is one of South India's leading residential real estate development companies, primarily focused on the mid-market and affordable housing categories.

Its key markets include Bangalore, Chennai and Kolkata which together account for nearly 85 per cent of its development activities. The company has delivered 40 projects with a saleable area of 22.4 million square feet, mostly in the cities of Bengaluru and Chennai.

Shriram Properties has a strong pipeline of 49 projects with an aggregate development potential of 52.7 million square feet as of December 31, 2023.

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