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PSP PROJECTS 2020-21 Annual Report Analysis
Wed, 31 Mar

PSP PROJECTS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

PSP PROJECTS Income Statement Analysis

  • Operating income during the year fell 17.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 29.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.9% in FY21 as against 12.7% in FY20.
  • Depreciation charges decreased by 4.0% and finance costs decreased by 0.3% YoY, respectively.
  • Other income declined by 31.1% YoY.
  • Net profit for the year declined by 35.0% YoY.
  • Net profit margins during the year declined from 8.6% in FY20 to 6.7% in FY21.

PSP PROJECTS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 14,993 12,409 -17.2%
Other income Rs m 242 167 -31.1%
Total Revenues Rs m 15,234 12,575 -17.5%
Gross profit Rs m 1,908 1,349 -29.3%
Depreciation Rs m 267 256 -4.0%
Interest Rs m 151 150 -0.3%
Profit before tax Rs m 1,732 1,109 -36.0%
Tax Rs m 450 276 -38.8%
Profit after tax Rs m 1,282 834 -35.0%
Gross profit margin % 12.7 10.9
Effective tax rate % 26.0 24.9
Net profit margin % 8.6 6.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

PSP PROJECTS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -10.3%.
  • Long-term debt down at Rs 28 million as compared to Rs 40 million during FY20, a fall of 31.1%.
  • Current assets fell 1% and stood at Rs 7 billion, while fixed assets rose 12% and stood at Rs 3 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 10 billion during FY20, thereby witnessing a growth of 3%.

PSP PROJECTS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 4,542 5,359 18.0
 
Current Liabilities Rs m 5,036 4,519 -10.3
Long-term Debt Rs m 40 28 -31.1
Total Liabilities Rs m 9,560 9,816 2.7
 
Current assets Rs m 6,991 6,927 -0.9
Fixed Assets Rs m 2,569 2,889 12.5
Total Assets Rs m 9,560 9,816 2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PSP PROJECTS Cash Flow Statement Analysis

  • PSP PROJECTS's cash flow from operating activities (CFO) during FY21 stood at Rs 735 million, an improvement of 373.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 52 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -44 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 743 million from the Rs 58 million net cash flows seen during FY20.

PSP PROJECTS Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 155 735 373.7%
Cash Flow from Investing Activities Rs m -80 52 -
Cash Flow from Financing Activities Rs m -18 -44 -
Net Cash Flow Rs m 58 743 1,186.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PSP PROJECTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.2, an decline from the EPS of Rs 35.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 463.4, stands at 20.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 416.5 344.7
TTM Earnings per share Rs 35.6 23.2
Diluted earnings per share Rs 35.6 23.2
Price to Cash Flow x 7.5 13.4
TTM P/E ratio x 9.0 20.0
Price / Book Value ratio x 3.4 2.7
Market Cap Rs m 15,314 14,598
Dividends per share (Unadj.) Rs 5.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PSP PROJECTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 1.4x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 8.4x during FY21, from 12.5x during FY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 15.6% during FY21, from 28.2% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 23.4% during FY21, from 41.1% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 10.0% during FY21, from 15.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.4 1.5
Debtors’ Days Days 573 666
Interest coverage x 12.5 8.4
Debt to equity ratio x 0.0 0.0
Return on assets % 15.0 10.0
Return on equity % 28.2 15.6
Return on capital employed % 41.1 23.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PSP PROJECTS has performed over the last 5 years, please visit here.

PSP PROJECTS Share Price Performance

Over the last one year, PSP PROJECTS share price has moved up from Rs 321.7 to Rs 463.4, registering a gain of Rs 141.7 or around 44.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for PSP PROJECTS and quarterly results for PSP PROJECTS)

Annual Report FAQs

What is the current share price of PSP PROJECTS?

PSP PROJECTS currently trades at Rs 686.1 per share. You can check out the latest share price performance of PSP PROJECTS here...

What was the revenue of PSP PROJECTS in FY21? How does it compare to earlier years?

The revenues of PSP PROJECTS stood at Rs 12,575 m in FY21, which was down -17.5% compared to Rs 15,234 m reported in FY20.

PSP PROJECTS' revenue has grown from Rs 4,582 m in FY17 to Rs 12,575 m in FY21.

Over the past 5 years, the revenue of PSP PROJECTS has grown at a CAGR of 28.7%.

What was the net profit of PSP PROJECTS in FY21? How does it compare to earlier years?

The net profit of PSP PROJECTS stood at Rs 834 m in FY21, which was down -35.0% compared to Rs 1,282 m reported in FY20.

This compares to a net profit of Rs 891 m in FY19 and a net profit of Rs 660 m in FY18.

Over the past 5 years, PSP PROJECTS net profit has grown at a CAGR of 19.0%.

What does the cash flow statement of PSP PROJECTS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of PSP PROJECTS reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 735 m as compared to Rs 155 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 52 m as compared to Rs -80 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -44 m as compared to Rs -18 m in FY20.

Here's the cash flow statement of PSP PROJECTS for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations-75697212155735
From Investments-35-1,222-228-8052
From Financial Activity220813-258-18-44
Net Cashflow110287-27458743

What does the Key Ratio analysis of PSP PROJECTS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of PSP PROJECTS reveals:

  • Operating profit margins witnessed a fall and stood at 10.9% in FY21 as against 12.7% in FY20.
  • Net profit margins declined from 8.6% in FY20 to 6.7% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of PSP PROJECTS for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)15.113.914.112.710.9
Net Profit Margin (%)9.48.88.58.66.7
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of PSP PROJECTS

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