The shares of the multidisciplinary construction company gained up to 4 percent after the company received new work orders worth Rs 935.41 crores from three domestic entities in Gujarat.
With a market capitalization of Rs 2,876.40 crore, the shares of PSP Projects Ltd were trading at Rs 799.00 per share, increasing around 2.75 percent as compared to the previous closing price of Rs 777.65 apiece.
According to the company filing, PSP Projects Ltd has received fresh work orders totaling Rs 935.41 crores from three domestic firms in Gujarat. The first order is for River Edge Development of the Dharoi Dam Region in Dharoi, Gujarat, for Narmada, Water Resources from the Water Supply and Kalpsar Department, valued at Rs 357.07 crore. The project is expected to be finished within 24 months.
Furthermore, the Gandhinagar Municipal Corporation has placed a second order for civil, MEP, and finishing work for the development of a street in Gandhinagar worth Rs 155.62 crores. The project is scheduled to be finished within 15 months.
Sabarmati Riverfront Development Corporation Limited has issued the third order for the development of the Sabarmati Riverfront in Ahmedabad, which is valued at Rs 399.38 crore. The project is expected to be finished within 30 months.
Additionally, with the receipt of the aforementioned orders, the entire order intake for the fiscal year 2023-24 to date amounts to Rs 1995.70 crores, which includes minor value work orders of Rs 23.33 crore.
The company’s revenue increased by 70 percent, from Rs 357 crore in Q2FY23 to Rs 607 crore in Q2FY24. During the same period, net profit increased by 69 percent, from Rs 23 crore to Rs 39 crore.
As of June 30, 2023, the company’s order book was Rs 5,321 crore, up from Rs 3,421 crore in the previous fiscal year. As of March 31, 2023, the Company has a bid pipeline of around Rs 6,000 crore projects, which is expected to increase the order book during the current fiscal year.
PSP Projects Limited provides a wide variety of construction and related services for industrial, institutional, government, and residential projects in India. It offers services throughout the construction value chain, from planning and design to building and post-construction operations.
Written by:- Abhishek Singh
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