Release Date: May 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PSP Projects Ltd (BOM:540544, Financial) achieved its highest ever outstanding order book of INR6,029 crores, marking a 20% year-on-year growth.
- The company received its highest ever order inflow of INR3,498 crores, excluding GST, surpassing its guidance.
- PSP Projects Ltd successfully raised INR244 crores through a qualified institutional placement, showing strong investor confidence.
- The company completed 17 projects during the year, including significant ones like the Reliance Corporate Office and Adani International School.
- PSP Projects Ltd reported its highest ever revenue of INR2,262 crores for FY24, reflecting a 28% year-on-year growth.
Negative Points
- Revenue from operations for Q4 FY24 decreased by 11% year-on-year to INR649 crores.
- EBITDA for Q4 FY24 fell by 33% year-on-year to INR52 crores, with EBITDA margin dropping to 7.98% from 10.67%.
- Net profit for Q4 FY24 declined by 67% year-on-year to INR15 crores, with PAT margin reducing to 2.3% from 6.3%.
- The company faced increased finance costs and depreciation, impacting profitability.
- PSP Projects Ltd experienced delays and additional costs in its UP projects, affecting overall margins.
Q & A Highlights
Q: Can you provide guidance on revenue and margin for the upcoming quarters, especially given the 8% EBITDA margin in Q4 FY24?
A: We expect to maintain margins between 10% and 11% due to operational variations in EPC contracts. Revenue growth is projected at around 15% for FY25. (P. S. Patel, Chairman, Managing Director and CEO)
Q: What is the status of the SDB settlement and expected payments?
A: We expect to receive INR100 crores within 30 days and the remaining amount within FY25, totaling INR225 crores including GST. (P. S. Patel, Chairman, Managing Director and CEO)
Q: How much revenue was generated from UP projects in FY24, and what is the pending receivable?
A: Revenue from UP projects was INR741 crores for FY24. The pending receivable from UP Medical Colleges and hospitals is around INR80 crores. (Hetal Patel, CFO)
Q: What is the expected impact of the QIP on other expenses in Q1 FY25?
A: The QIP expenses will not significantly impact the P&L numbers. (Hetal Patel, CFO)
Q: What is the status of the Gujarat Biotechnology Project and its execution timeline?
A: The project is now on track after resolving issues related to basement construction. Excavation has started, and we expect to proceed with the project as planned. (P. S. Patel, Chairman, Managing Director and CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
