PSP Projects (PSPPROJECT) Q4 16/17 earnings summary

Executive summary

• Standalone FY17 sales and other income were ₹41,395.73 lakh vs ₹46,824.36 lakh; operating revenue fell 12.49% as client-supplied materials were excluded from contract value, while PBT rose 62.27% to ₹6,393.79 lakh.

• Standalone PAT rose to ₹4,130.97 lakh from ₹2,513.07 lakh, reflecting a more profitable project mix; shares began trading on BSE and NSE on May 29, 2017.

Financial highlights

• Consolidated FY17 sales and other income were ₹47,014.74 lakh vs ₹48,629.46 lakh; PBT was ₹6,400.33 lakh vs ₹3,470.96 lakh, and PAT attributable to shareholders was ₹4,120.49 lakh vs ₹2,283.21 lakh.

• Standalone other income increased to ₹1,320 lakh from ₹1,026.71 lakh, mainly due to higher interest income, investment income and gains on investment sales.

• Standalone finance costs rose to ₹753.16 lakh from ₹307.09 lakh, reflecting higher working-capital loan use, term loans for vehicles and equipment, and bank-guarantee costs.

Outlook and guidance

• Construction-industry growth was expected to benefit from residential, infrastructure and energy investment, urbanization, affordable housing initiatives, and improved transport and logistics.

• Operations remained concentrated in Gujarat, with a wider geographic portfolio and bids across India; project services span planning and design through construction and post-construction work.

• Industry outlook cited a construction-sector value of INR 11,954 billion by 2017; talent shortages were identified as a continuing source of project cost and execution risk.