- 19 Oct 2022
- ICICIdirect Research
PSP PROJECTS POSTS EEAK EXECUTION OWING TO EXTENDED MONSOON IMPACTING OPERATING PERFORMANCE
PSPPROJECT - 636 Change: 19.20 (3.11 %)News:
Overall, PSP reported a subdued performance during Q2FY23. PSP’s revenue during Q2FY23 declined 8.7% YoY to Rs 356.6 crore. EBITDA margin moderated to 10.8% (down 319 bps YoY). Effectively, EBITDA at Rs 38.6 crore, was down 29.5% YoY. PAT declined 37.4% YoY to Rs 22.9 crore.
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While performance at topline level got impacted due to considerable decline in execution pace in key projects with heavy and extended monsoon period, margins moderated owing to benign revenue recognition and higher employee expenses. Also, commencement of execution in newer projects (attracts lower margins during initial phase of construction) impacted margin performance. Going forward, the company indicated towards a pick-up in execution pace from October 2022 (has maintained topline guidance of Rs 2200 crore in FY23, implying likely growth of ~44% in H2) with considerable decline in rains, which is likely improve its overall performance significantly during H2FY23.
Impact:
Negative.