PSP Projects (PSPPROJECT) Q4 19/20 earnings summary

Executive summary

• FY20 standalone revenue reached a record ₹1,499.26 crore, up 44% YoY; EBITDA and PAT also hit all-time highs at ₹190.98 crore and ₹129.13 crore.

• The year closed with an order book of ₹3,073.56 crore across 47 projects, while operations expanded into five Indian states.

• Execution and financial growth came amid a construction slowdown and the initial COVID-19 disruption; the lockdown’s FY20 impact was described as negligible, with a substantial impact expected in Q1 FY21.

Financial highlights

• Standalone revenue from operations was ₹1,499.26 crore versus ₹1,044.01 crore in FY19; EBITDA was ₹190.98 crore versus ₹148.94 crore.

• Standalone PAT rose 43% YoY to ₹129.13 crore from ₹90.22 crore; PBT was ₹174.42 crore, up 26% YoY.

• Consolidated revenue from operations was ₹1,499.26 crore; total income rose 42% to ₹1,523.43 crore and PAT increased 44% to ₹128.03 crore.

• Standalone operating cash flow was ₹19.04 crore, compared with ₹27.70 crore in FY19; closing cash and cash equivalents were ₹41.21 crore.

Outlook and guidance

• The ₹3,073.56 crore order book included expected contract revenue of ₹1,089.72 crore in FY21, ₹1,557.69 crore in FY22 and ₹426.15 crore in FY23.

• Management expected operations to approach normal by Q2 FY21; by end-July 2020, 80% of labour strength had returned to sites and ~90% of projects had resumed by end-June.

• Surat Diamond Bourse completion, initially targeted for March 2021, could be delayed one or two months due to COVID-19 restrictions, finishing-material approvals and labour shortages.

• The first phase of a precast concrete plant near Sanand, with 1 Mn sq. ft. annual capacity, was slated to start by May 2021; planned full capacity is 3 Mn sq. ft. annually.

• Growth plans include expanding beyond Gujarat, pursuing airport construction and entering precast and pre-engineered building segments.