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News: PSP projects standalone revenue grew by 20% YoY to ₹612 crore in Q1 FY25. EBITDA grew by 14% YoY to ₹73 crore, with margins at 12%, largely attributed by the additional revenue from SDB. Adjusted margins remained dismally low in high single digits owing to higher costs in UP projects. At PAT level, higher finance costs and depreciation led to a 7% YoY decline in PAT at ₹34 crore.
Views: PSP’s order book stood at ₹5890 crore as of Q1 FY25. The company has maintained its guidance for revenue and EBITDA margins at 15% and 10-11% respectively for FY25. The company has a strong bid pipeline of ₹6400 crore ahead which gives the company confidence in achieving their order inflow guidance of ₹3500 crore for FY25. Nonetheless, margins trajectory will be key monitorable ahead.
Impact: Neutral