- 03 Jan 2023
- ICICIdirect Research
PSP PROJECTS SECURES ORDERS WORTH RS 1364.5 CRORE
PSPPROJECT - 646 Change: -14.10 (-2.14 %)News: PSP Projects has emerged as lowest bidder (L1) for a government project worth Rs 1,364. 5 crore (excluding GST) of construction of state of the art high rise office building at Surat, Gujarat for Surat Municipal Corporation. As on September 30, 2022, PSP Projects' order book was healthy at Rs 5,081 crore (2.9x book to TTM revenues). Additionally, the company has secured orders worth ~Rs 2045 crore post Q2FY23, strengthening its order book further. Overall, the total order inflow at YTD FY23 amounts to Rs 3310 crore
View: We highlight the company had guided for total inflows of Rs 2,500-3000 crore in FY23E (vs. Rs 1,802 crore of projects secured in FY22). With current inflows, it has exceeded the overall inflows target, which will boost the overall revenue growth visibility in FY24. With better opportunities coming from both - government and private clients, its expansion into different states and improved eligibility of higher-ticket size projects, the company is likely to witness a strong growth trajectory ahead
Impact: Positive