BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
PSP Projects Ltd. reported result much below estimates except Ebitda margin inline. The company posted marginal growth of 2.4% YoY in revenue to Rs 5.0 billion, whereas Ebitda/adjusted profit after tax were down by 16.8%/ 24.8% YoY to Rs 616 million/ Rs 353 million in Q3 FY23.
Ebitda margin down 286 basis points YoY to 12.4% primarily due to higher construction expenses and other expenses, which was partially offset by lower raw material cost and employee cost.
PSP Projects won orders worth Rs 18 billion/ Rs 36.4 billion (including level one of Rs 3.5 billion) in FY22/ year-to-date FY23. The current order book of Rs 64.2 billion (Rs 50.8 billion as on Dec-22) provides revenue visibility for 3.7 times trailing twelve months revenue.
PSP Projects has bid pipeline of Rs 45 billion of which 60%/ 25% is from private projects/ Gujarat. We factor our order inflow estimates of Rs 37.9 billion (versus earlier Rs 25 billion)/ Rs 35 billion (versus earlier Rs 30 billion)/ Rs 40 billion (versus earlier Rs 30 billion) for FY23E/ FY24E/ FY25E.
We decrease our revenue/ Ebitda/adjusted profit after tax estimates by 7.9%/ 6.6%/ 11.1% for FY23E factoring nine months-FY23 numbers. However, we maintain our estimates for FY24E, whereas we increase our revenue/ Ebitda/adjusted profit after tax estimates by 9.6%/ 9.6%/ 8.4% for FY25E factoring higher order inflow in FY23E/ FY24E.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
Siemens Q2, DLF, JK Cements Q4 Results Review: HDFC Securities
May 15, 2024
IRB Infra Q4 Results Review - Inline Performance; Order Pipeline Remains Robust: Motilal Oswal
May 09, 2024
JSW Infra Q4 Results Review - Robust Quarter Led By Higher Third-Party Volumes; Outlook Bright: Motilal Oswal
May 05, 2024
Paytm Receives Nod On User Migration to PSP Banks Handles
Apr 17, 2024
POPULAR