Buzzing Stock: PSP Projects soars 22% in 5 sessions after posting robust Q3 results

The stock has hit its all-time high of Rs 627.95 today.

Shares of the multi-disciplinary construction company, PSP Projects Limited were up 6% on Monday today, continuing its rally from last week on the back of a strong set of Q3 numbers.

In the quarter ended December 2021, PSP Project’s revenue grew by 24.47% YoY to Rs 485.62 crore from Rs 390.16 crore in Q3FY21. On a sequential basis, the top-line was up by 24.38%. PBIDT (Ex OI) was reported at Rs 76 crore, up by 69.46% as compared to the year-ago period and the corresponding margin was reported at 15.65%, expanding by 416 basis points YoY. The operating margins were supported by associated revenue from the completion of a project. PAT was reported at Rs 50.3 crore, up by 76.18% from Rs 28.55 crore in the same quarter for the previous fiscal year. The PAT margin stood at 10.36% in Q3FY22 expanding from 7.32% in Q3FY21. 

PSP’s order book stands at Rs 4,008 crore, with 2.36x TTM revenues and provide good revenue visibility for the next couple of years. During 9MFY22 the company has thus far secured orders worth Rs 978 crore and further expects to secure another order worth Rs 1600 crore in FY22E. PSP Projects now has a robust bid pipeline of Rs 3,500 crore, which should support strong order inflow. The bid pipeline includes projects such as the government’s Central Vista project (Rs 1,175 crore), sports complex project (Rs 600 crore), residential project in Mumbai (Rs 300 crore), corporate office project (Rs 200 crore) and industrial project (Rs 200 crore). In addition, the Central Vista project is anticipated to provide an opportunity worth Rs 15,000 crore. 

The quarter ended December 2021 also saw the company complete a precast facility of 1.1 million sq ft with an investment of Rs 109 crore. It will help the company simplify labour-intensive traditional building methods using maximum prefabrication and cutting-edge technology, thereby reducing turnaround time for projects. At maximum capacity, PSP can generate Rs 300 crore of revenues from this facility.

On Monday, the stock of PSP Projects closed at Rs 611.30, up by 6.07% or Rs 35 per share as compared to a 1.42% gain in the benchmark index.