Shriram Properties · tone and specificity signals across the available quarters.
Language signals
We are almost end of that curve once we complete the Shankari in Chennai and Kolkata Grand One and Sunshine One... all the projects that we launched post-COVID or around 2019-20 onwards are projects where we have consistently moved away from low ticket size or a low pricing environment to a better pricing environment where our selling prices are about ₹7,600-7,700 is our average selling price for our midmarket product.
We might go up on the gearing levels... Our long-term comfort zone will be about 0.5x. Temporarily it might go up to support aggressive growth and pipeline addition.
Market somehow we believe is not giving us full credit for what we have delivered so far... We will try our best but we take your feedback as a very fair comment. With regard to the surprise, I don't think any surprise has been built in in our earnings here.
We thought it appropriate to put a number as a guidance which are more conservative more prudent and then as the market picks up as the market stabilizes try and optimize the number than trying to put a big number and then scale back.
The markets are looking at not more than 5-6% annual upside in the existing projects. That will cover an inflationary pressure of what 8 to 10% in the construction cost side. So margin expansion may not happen due to price hikes. Margin protection is a real margin enhancement happen only through new project, new micro market portfolio upgrades.
We have consistently maintained that we are looking at net PBT margins of about 10 to 11% as we go in future. On a normalized basis over a period of 3 years, 8% plus PAT margin would be a safe number.