PSP Projects (PSPPROJECT) Q1 24/25 earnings summary

Executive summary

• Order book stood at ₹5,890 crore as of June 30, 2024, up 11% YoY, with 56 ongoing projects and 224 completed projects; Q1 order inflow was ₹297 crore, including a major ₹229 crore mall project in Surat.

• Revenue for Q1 FY25 was ₹612 crore (₹62,306.21 lakh), a 20% YoY increase, with EBITDA at ₹73 crore (up 14% YoY) and EBITDA margin at 12%.

• Net profit declined 7% YoY to ₹34 crore (₹3,468.44 lakh), with PAT margin at 5.56% versus 7.13% last year.

• Incorporated in 2008 and listed in 2017, the company has a 7-year revenue CAGR of 29.61%, EBITDA CAGR of 21.76%, and PAT CAGR of 16.93%.

• In April 2024, ₹244 crore was raised via QIP, primarily for debt repayment, increasing paid-up equity capital from ₹36 crore to ₹39.64 crore.

Financial highlights

• Q1FY25 revenue from operations grew 20% YoY to ₹612 crore; EBITDA rose 14% YoY to ₹73 crore; PAT declined 7% YoY to ₹34 crore.

• FY24 revenue from operations increased 28% YoY to ₹2,462 crore; EBITDA up 16% YoY to ₹262 crore; PAT down 7% YoY to ₹124 crore.

• SDB project contributed ₹64 crore in revenue and ₹54 crore to EBITDA, with ₹104 crore received in July as part of settlement.

• Consolidated revenue from seven UP projects was ₹10 crore in Q1; cumulative revenue ₹1,469 crore.

• Total fixed deposits at ₹264 crore, with ₹47 crore lien-free.

Outlook and guidance

• Management maintains FY25 revenue target of ₹2,008 crore and order inflow guidance of ₹3,500 crore.

• EBITDA margin guidance for the rest of FY25 is 10%-11%, with Q1 margin impacted by one-off UP project costs.

• The company is eligible to bid for larger value projects after completing the Surat Diamond Bourse.

• Ongoing capacity addition in precast manufacturing to meet rising demand in civil and infrastructure segments.

• Expectation of 10%-15% annual growth in revenue and stable margins for FY26 and beyond.