In Monday’s trading session, the shares of an India-based construction company surged 5.1 percent to Rs. 708.9, after the company secured work orders worth a total of Rs. 554.92 crores for the construction of commercial and residential towers.
At 02:04 p.m., the shares of PSP Projects Limited were trading in the green at Rs. 693.65, up by 2.8 percent, compared to its previous closing price of Rs. 674.45, with a market capitalisation of Rs. 2,749.8 crores.
What’s the news:
According to the latest regulatory filings with the stock exchanges, PSP Projects received two work orders worth Rs. 554.92 crores, including a few small value work orders amounting to Rs. 0.59 crores.
The first order worth Rs. 389.29 crores involves the construction of Gold Stone Hotel and Commercial Towers in Bangalore, Karnataka, in the Institutional Category. The projects are to be completed within a period of 22 months and 16 months respectively.
The second order is for the construction of Residential Towers in Ahmedabad, valued at Rs. 165.04 crores, with a completion period of 24 months.
With these new orders, the total order inflow for FY25 thus far has reached Rs. 1,444.91 crore.
Previous Orders:
On 14th August, PSP Projects received two work orders worth Rs. 653.67 crores, including a few small value work orders totalling Rs. 67.65 crores.
The first order was for civil and structural work worth Rs. 484.02 crores for the project “Himalaya” at Sanand, Gujarat, for International Refreshments (India) Private Limited in the Industrial Category, to be completed within a period of 14 months.
The second order worth Rs. 102 crores was for the construction of project “Ninety” at Mumatpura, Ahmedabad, Gujarat, from PSP Properties LLP in the Institutional Category, to be completed within a period of 10 months.
Financials:
In Q1 FY25, the company generated Rs. 623 crores in operating revenue, a 21.2 percent increase from the Rs. 514 crores recorded in Q1 FY24. However, the consolidated net profit fell marginally by 8 percent reaching Rs. 35 crores, down from Rs. 38 crores, over the same period.
On a year-on-year basis, the standalone Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased from Rs. 64.6 crores in Q1 FY24 to Rs. 73.4 crores in Q1 FY25, registering a growth of nearly 14 percent.
In April 2024, PSP Projects raised capital through a Qualified Institutional Placement (QIP) amounting to Rs. 244 crore, primarily to repay outstanding borrowings availed by the company.
As of 30th June, the company reported an order book of Rs. 5,890 crore, which included 224 completed projects and 56 ongoing projects.
Within the order book, 64 percent of the projects were awarded by the government, 3 percent came from government residential, 4 percent were from the industrial sector, 23 percent from the institutional segment, and the remaining 6 percent from the residential sector.
Stock Performance:
The stock has delivered negative returns of nearly 13 percent of returns in one year, while around 4 percent of positive returns in the last six months. So far in 2024, the shares of PSP Projects have given negative returns of about 10 percent.
About the company:
Incorporated in August 2008, PSP Projects Limited is engaged in the business of providing a wide range of construction and allied services across industrial, institutional, government, government residential and residential projects.
It is an integrated EPC company across the construction value chain from design, construction, mechanical, electrical, plumbing (MEP), interior, and O&M services.
Written by Shivani Singh
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