PSP PROJECTS Announces Quarterly Results (1QFY21); Net Profit Down 108.7%

Mon, 10 Aug

PSP PROJECTS has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

PSP PROJECTS Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-19*	3 Mar-20*	3 Jun-20*	QoQ Change	YoY Change
Net Sales	Rs m	3,073	4,564	1,069	-76.6%	-65.2%
Other income	Rs m	52	74	48	-35.4%	-7.7%
Turnover	Rs m	3,125	4,638	1,117	-75.9%	-64.3%
Expenses	Rs m	2,646	4,059	1,056	-74.0%	-60.1%
Gross profit	Rs m	427	505	13	-97.4%	-97.0%
Depreciation	Rs m	59	76	62	-19.0%	4.8%
Interest	Rs m	28	42	29	-30.6%	5.0%
Profit before tax	Rs m	392	461	-30	-106.4%	-107.6%
Tax	Rs m	137	119	-8	-106.3%	-105.5%
Profit after tax	Rs m	255	343	-22	-106.5%	-108.7%
Gross profit margin	%	13.9	11.1	1.2
Effective tax rate	%	34.9	25.7	25.3
Net profit margin	%	8.2	7.4	-2.0

Year-on-Year Performance:

• The company's operating income during the quarter fell 65.2% on a year-on-year (YoY) basis. The expenses were down by 60.1% YoY during the same period.
• The company's operating profit declined by 97.0% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 1.2% in 1QFY21 as against 13.9% in 1QFY20.
• Depreciation charges increased by 4.8% and finance costs increased by 5.0% YoY, respectively.
• Other income declined by 7.7% YoY during the quarter.
• Net profit for the quarter declined by 108.7% YoY. Net profit margins during the quarter declined from 8.2% in 1QFY20 to -2.0% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 76.6% on a quarter-on-quarter (QoQ) basis. The expenses were down by 74.0% QoQ during the same period.
• The company's operating profit declined by 97.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 1.2% in 1QFY21 as against 11.1% in 4QFY20.
• Net profit for the quarter declined by 106.5% QoQ, while net profit margins declined from 7.4% in 4QFY20 to -2.0% in 1QFY21.

To see how PSP PROJECTS has performed over the last eight quarters,please visit here.

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PSP PROJECTS Share Price Performance

Over the last one year,PSP PROJECTS share price has moved down from Rs 495.6 to Rs 405.2, registering a Loss of Rs 90.4 or around 18.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,621.8 (up 1.0%). Over the last one year it has moved down from 2,049.4 to 1,621.8, a gain of 428 points (down 20.9%).

Overall, the S&P BSE SENSEX is up 4.5% over the year.

Current Valuations

At the current price of Rs 405.2, the price to earnings (P/E) ratio of PSP PROJECTS stands at 14.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.9 times.