PSP Projects (PSPPROJECT) Q4 21/22 earnings summary

Executive summary

• FY22 standalone revenue reached ₹1,748.76 crore, up 40.93% YoY and 16.64% above the pre-pandemic FY20 high; revenue guidance was exceeded.

• EBITDA rose 90.27% to ₹256.51 crore and standalone net profit before OCI rose 101.02% to ₹162.40 crore.

• The March 31, 2022 order book was ₹4,324 crore across 43 projects; 62.62% was outside Gujarat and 92% comprised EPC and turnkey projects.

• Strategy centers on larger, more complex pan-India projects, EPC/turnkey delivery, digital controls and precast manufacturing.

Financial highlights

• Standalone revenue from operations rose 40.93% to ₹1,748.76 crore; total income was ₹1,770.01 crore, up 40.72%.

• Standalone EBITDA increased 90% to ₹256.51 crore; EBITDA margin expanded to 14.67% from 10.86%.

• Standalone PAT was ₹162.40 crore, up 101.02%; EPS was ₹45.11 versus ₹22.44. Consolidated PAT was ₹166.27 crore and EPS ₹46.29.

• Revenue growth reflected increased construction activity after COVID recovery; expenses rose 35.27%, including finance costs up 79.67% and other expenses up 91.34%.

Outlook and guidance

• Revenue is expected to compound 20–25% over the next two years, supported by a focus on ₹500 crore private-sector and ₹1,000 crore public-sector projects.

• FY23 priorities include larger projects across sectors and geographies, customer experience, capability building, technology adoption and precast manufacturing.

• Remaining performance obligations totaled ₹4,323.51 crore; indicative revenue conversion: ₹2,431.33 crore in FY23, ₹1,261.34 crore in FY24 and ₹630.84 crore in FY25.

• Precast capacity is planned to scale from 1 million sq. ft. in Phase I toward 3 million sq. ft. annually at full operation.