PSP Projects – Construction Company

con call-November
Order Book and Order Inflow:

• PSP Projects Limited was awarded 9 projects in Q2FY24 and 14 projects in H1FY24.
• The outstanding order book as of September 30, 2023, was Rs.4,898 crore, with private projects comprising 48% and government projects comprising 52%.
• The company received an order inflow of Rs.175 crore during the quarter and Rs.934 crore during H1FY24.
• The company expects an order inflow of nearly Rs.3,000 crore in FY24.
• The company has a bid book of approximately Rs.6,500 crore.

Projects and Awards:

• The company completed 2 projects during the quarter, including a Surat Smart City Development Command Center and Adani Group’s school in Ahmedabad.
• PSP Projects Limited received awards for “Contractor of the year” and “Excellence in Construction Sector” during the quarter.
• Major projects in the bid book include AIIMS at Rewari, a museum project in Madhya Pradesh, and a commercial building in Delhi.
• The UP projects are expected to be completed by March 2024.
• The company aims to diversify its projects beyond Gujarat and has opportunities in states like Delhi and UP.

Financial Performance:

• The financial performance during Q2FY24 showed a 70% increase in revenue from operations, a 91% increase in EBITDA, and a 71% increase in net profit compared to the same period last year.
• The company expects to maintain a margin of 11% to 13%.
• The company has invested approximately Rs.165 crore in the precast facility.
• The cash and bank balance, including FDs, is approximately Rs.285 crore.

Closing Order Book:

• The order inflow for FY24 is expected to be Rs.3,000 crore.
• The closing order book is estimated to be around Rs.5,500 crore to Rs.6,000 crore.