PSP Projects Limited — PPTs, 23-05-2025: Investor Presentation

1. Financial Highlights:

PSP Projects reported revenue from operations of ₹2,468 crore with a marginal 0.23% growth YoY. EBITDA declined 32% to ₹178 crore, compressing the margin to 7.2% from 10.6%. Profit after tax fell 55% to ₹56 crore, with PAT margin at 2.3%. Q4 saw revenue remain flat at ₹655 crore, while EBITDA and PAT dropped 41% and 68% respectively, reflecting subdued operational momentum. The order book grew 20% YoY to ₹7,266 crore, and order inflow stayed stable at ₹3,506 crore. Leverage is comfortable at 0.22x with near-zero net debt.

2. Strategic Initiatives & Growth Drivers:

PSP is expanding its precast manufacturing facility to boost quality, speed, and volume through offsite modular construction tech to meet future infrastructure demand. It continues diversifying across industrial, institutional, government, and residential sectors, focusing on key states like Gujarat, Rajasthan, Karnataka, Uttar Pradesh, Maharashtra, and Delhi. Its integrated EPC model covers design, construction, MEP, interiors, and O&M, enhancing execution capabilities. A recent capital infusion and partnership with Adani Infra provide financial flexibility and access to a large pipeline.

3. Business Developments:

PSP has formed a strategic partnership with Adani Infra, which will acquire up to 30.07% stake from promoters, expected to bolster order flow and improve receivables risk. Completed marquee projects include the Surat Diamond Bourse, with ongoing prestigious projects at GIFT City and engagements with clients like Zydus Cadila, Adani Group, and Torrent.

4. Market Position & Competitive Advantage:

As a fast-growing mid-sized EPC player, PSP can now bid for projects up to ₹2,500 crore. Its vertical integration, precast expertise, and diversified order book across sectors provide strong competitive differentiation. The company enjoys a strong brand reputation for quality, timely execution, and ethical conduct, leading to repeat business from marquee clients nationwide.

5. Investor Implications:

The Adani Infra tie-up alongside a robust ₹7,266 crore order backlog signals positive growth potential driven by India’s infrastructure expansion. However, recent margin and revenue pressures highlight execution challenges to watch. A strong balance sheet and prudent working capital management provide financial stability. Execution of new orders and margin recovery remain key near-term indicators for sustained momentum.