PSP Projects (PSPPROJECT) Q4 18/19 earnings summary

Executive summary

• FY2018-19 delivered record standalone revenue of ₹1,044.01 crore, up 43% YoY, and PAT of ₹90.22 crore, up 40% YoY.

• Work on hand reached a record ₹2,978 crore at March 31, 2019, supporting revenue visibility across 46 projects; 21 projects were completed during the year.

• Industrial and institutional work contributed ~85% of revenue, aligning the order pipeline with the areas identified as core strengths.

Financial highlights

• Standalone revenue from operations was ₹1,044.01 crore versus ₹729.83 crore in FY2017-18; PAT was ₹90.22 crore versus ₹64.34 crore.

• Standalone EBITDA reached ₹148.94 crore, up 47% YoY; EBITDA margin was 14.27% versus 13.88% in FY2017-18.

• Consolidated revenue from operations was ₹1,050.41 crore versus ₹751.65 crore; PAT was ₹89.21 crore versus ₹66.00 crore.

• Consolidated PBT rose 34% to ₹137.43 crore; consolidated EPS was ₹24.84 versus ₹18.78 in FY2017-18.

Outlook and guidance

• Management expects SDB execution to lift project prequalification, with eligible government-project bidding capacity projected to rise from ₹5–6 billion to above ₹15 billion after completion.

• SDB revenue was expected at ₹6.5–7 billion in FY2019-20, with the balance in FY2020-21; peak execution and higher site inventory could temporarily stretch working capital.

• Targeted revenue mix is at least 70% Gujarat and 30% outside Gujarat over the next 2–3 years; bidding beyond Gujarat will remain selective.

• Potential demand drivers cited include Gujarat industrialization, GIFT City and DREAM City development, Smart Cities, Housing for All, and healthcare and education infrastructure.