PSP Projects surges 6% as company bags new orders worth Rs 247 cr

Shares of PSP Projects surged 6 per cent to Rs 624 on the BSE in Thursday’s intra-day trade after the company said it was awarded contracts worth Rs 247.35 crore (excluding GST) from Precast and Government segments.

With receipt of the current order, the total order inflow for the financial year 2022-23 till date amounts to Rs 1,344.24 crore, the civil construction company said in an exchange filing.

At 09:24 am, PSP Projects traded 5 per cent higher at Rs 614.75, as compared to 0.48 per cent rise in the S&P BSE Sensex. However, in the past one month, the stock has declined 6 per cent against 6.5 per cent rally in the benchmark index. The stock registered a 52-week high of Rs 672 on July 19, 2022.

PSP is one of the prominent contractors offering a diversified range of construction and allied services. Its focus remains on industrial, institutional, government, government residential and residential projects.

In April-June quarter (Q1FY23), PSP reported a mixed operational performance, wherein the revenue improved 8.8 per cent year-on-year (YoY) to Rs 345.2 crore. The topline got impacted partly by slow-down of execution in UP-based projects due to labour issues. Profit after tax grew 13.6 per cent YoY at Rs 28.5 crore.

“PSP’s pre-qualification for public projects would rise to Rs 2,000+ crore with the completion of the Surat Diamond Bourse (SDB) project. Addition of big ticket sized project is expected to boost its overall order book position,” analysts at ICICI Securities said in result update.

Diversification in select states offers a bigger opportunity pie and the significant traction and orders for pre-cast facility is likely to bring incremental benefits and associated revenue, the brokerage firm added.