PSP Projects aims to end FY24 with revenue of ₹2,500-2,600 crore

Ahmedabad-based PSP Projects is confident to end the current financial year (FY24) with revenue of ₹2,500-2,600 crore. Next year (FY25), the company is targeting ₹3,000 crore in revenue, said PS Patel, CMD & CEO of PSP Projects in an interview with CNBC-TV18.

The construction firm is also confident of crossing ₹3,000 crore of order inflow target for FY24 and expects ₹3,600 crore of order inflow for FY25.

PSP reported a 41% year-on-year (YoY) rise in consolidated net profit to ₹31 crore for the third quarter (Q3FY24). Revenue grew 41% to ₹705 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) was up 13% YoY at ₹69 crore. However, EBITDA margin compressed to 9.8% from 12.2% YoY.

On January 17, the company announced that it emerged as the lowest bidder for a project worth ₹630.9 crore from Rail Vikas Nigam Ltd (RVNL).

In a filing to the stock exchanges, the construction company said that it has secured the lowest bidder status (L1 bidder) for the project titled ‘Construction of Gati Shakti Vishwavidyalaya’ for Rail Vikas Nigam in Vadodara, Gujarat.

Patel also stated that the total value of projects for which the company stands as the lowest bidder amounts to ₹1,853.37 crore in the current financial year 2023–24, excluding goods and services tax (GST).

This was the second such project after it became the lowest bidder for a project worth ₹158.61 crore from the Gujarat government. The project was awarded by Gandhinagar Municipal Corporation for the ‘Civil, MEP, and Finishing Work for Development of Street’.

PSP Projects is a multi-disciplinary construction company offering a diversified range of construction and allied services across industrial, institutional, and residential projects in India.

When asked if the Code of Conduct will impact business ahead of the General Elections of 2024, he said, “There will be a slowdown of 40-45 days.”

The market capitalisation of the company is ₹2,575 crore.