PSP PROJECTS 2022-23 Annual Report Analysis

Mon, 21 Aug

PSP PROJECTS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

PSP PROJECTS Income Statement Analysis

• Operating income during the year rose 10.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.9% in FY23 as against 14.8% in FY22.
• Depreciation charges increased by 24.8% and finance costs increased by 20.7% YoY, respectively.
• Other income grew by 15.1% YoY.
• Net profit for the year declined by 19.0% YoY.
• Net profit margins during the year declined from 9.5% in FY22 to 6.9% in FY23.

PSP PROJECTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	17,481	19,378	10.9%
Other income	Rs m	217	250	15.1%
Total Revenues	Rs m	17,698	19,628	10.9%
Gross profit	Rs m	2,584	2,301	-11.0%
Depreciation	Rs m	321	400	24.8%
Interest	Rs m	265	320	20.7%
Profit before tax	Rs m	2,216	1,831	-17.4%
Tax	Rs m	553	485	-12.4%
Profit after tax	Rs m	1,663	1,346	-19.0%
Gross profit margin	%	14.8	11.9
Effective tax rate	%	25.0	26.5
Net profit margin	%	9.5	6.9

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PSP PROJECTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 63.7%.
• Long-term debt stood at Rs 381 million as compared to Rs 172 million during FY22, a growth of 121.5%.
• Current assets rose 56% and stood at Rs 13 billion, while fixed assets rose 7% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 18 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 39%.

PSP PROJECTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,870	8,010	16.6
Current Liabilities	Rs m	5,647	9,242	63.7
Long-term Debt	Rs m	172	381	121.5
Total Liabilities	Rs m	12,589	17,525	39.2
Current assets	Rs m	8,211	12,822	56.2
Fixed Assets	Rs m	4,378	4,703	7.4
Total Assets	Rs m	12,589	17,525	39.2

PSP PROJECTS Cash Flow Statement Analysis

• PSP PROJECTS's cash flow from operating activities (CFO) during FY23 stood at Rs 453 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -507 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 115 million, an improvement of 208% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 61 million from the Rs -276 million net cash flows seen during FY22.

PSP PROJECTS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	1,473	453	-69.3%
Cash Flow from Investing Activities	Rs m	-1,641	-507	-
Cash Flow from Financing Activities	Rs m	-107	115	-
Net Cash Flow	Rs m	-276	61	-

Current Valuations for PSP PROJECTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 37.4, an decline from the EPS of Rs 46.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 797.0, stands at 20.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	485.6	538.3
TTM Earnings per share	Rs	46.2	37.4
Diluted earnings per share	Rs	46.2	37.4
Price to Cash Flow	x	9.8	12.7
TTM P/E ratio	x	11.7	20.0
Price / Book Value ratio	x	2.7	2.8
Market Cap	Rs m	18,594	22,220
Dividends per share (Unadj.)	Rs	5.0	2.5

Ratio Analysis for PSP PROJECTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.5x during FY22. 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 6.7x during FY23, from 9.4x during FY22. 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 16.8% during FY23, from 24.2% during FY23. 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 25.6% during FY23, from 35.2% during FY22. 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 9.5% during FY23, from 15.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.5	1.4
Debtors’ Days	Days	649	817
Interest coverage	x	9.4	6.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.3	9.5
Return on equity	%	24.2	16.8
Return on capital employed	%	35.2	25.6

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 584.9 to Rs 797.0, registering a gain of Rs 212.1 or around 36.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,259.9 (up 0.4%). Over the last one year it has moved up from 3,587.7 to 4,259.9, a gain of 672 points (up 18.7%).

Overall, the S&P BSE SENSEX is up 8.3% over the year.

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