Q1 2027 PSP Projects Ltd Earnings Call Transcript
Key Points
- Revenue grew 65% year-over-year to Rs 853 crore, with EBITDA up 121% to Rs 55 crore and net profit surging nearly 50 times to Rs 18 crore.
- Outstanding order book reached Rs 13,245 crore, a 103% year-on-year increase, providing strong multi-year revenue visibility.
- Major projects have progressed beyond initial excavation stages, enabling improved execution and a workforce of over 16,000 laborers deployed.
- Order inflows of Rs 630 crore during the quarter, with 93% from Adani Group, including key projects like the Adani Healthcare and Research Foundation Project in Mumbai.
- Management expects EBITDA margins to improve to 7-8% in the second half of FY27, driven by better labor availability and higher revenue conversion.
- Working capital management is improving, with finance costs reducing and expectations of further reductions, potentially leading to near-zero finance costs in coming quarters.
- The bid pipeline stands at Rs 6,200+ crore, with 61% from group projects and 39% external, indicating strong future growth potential.
- Q1 is traditionally a challenging period due to labor migration and monsoon onset, impacting execution and margins.
- Employee costs increased to 5.39% of sales (Rs 46 crore) due to annual increments and a larger workforce, temporarily pressuring margins.
- EBITDA margin of 6.42% remains below the 7-8% target, with management expecting improvement only from the second half of FY27.
- Order inflows of Rs 630 crore were lower than the annual guidance of Rs 5,000-6,000 crore, with visibility dependent on second-half orders.
- Receivables from SGB projects (Rs 90 crore) remain unresolved, with management still in discussions for recovery.
- The company faces potential cost impacts from rising aluminum and copper prices on fixed-price projects like SMC and RVNL.
- Dharavi redevelopment projects are in early stages, with only 30,000-32,000 houses under construction out of a total 200,000, and future opportunities depend on successful execution.
Ladies and Gentlemen, Good day and welcome to PSP Projects Q1 FY27 Earnings Conference Call hosted by Ernst & Young. ( Operators Instructions )
. Please note that this conference is being recorded. I now hand the conference over to Miss Krishna Patel from Ernst & Young.
Thank you, and over to you.
()-
Thank you, Nasya, and good evening everyone. Welcome you all to PSP Project Limited's Q1 FY27 Earnings Conference Call. To take us through the results and to answer your questions, we have with us the management of TSP projects, represented by Mr. Pelarbhai Patel, the Chairman and indie, Miss Pooja Patel, the CEO, and Miss April Patel, the CFO. Please note that the discussions that we may have today may contain certain forward-looking statements relating to the future events and future performance. Numerous factors could cause actual results to differ materially from those in the forward-looking statement. Please note the audio of this earnings call
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
