PSP PROJECTS Announces Quarterly Results (2QFY20); Net Profit Up 86.4%

Fri, 1 Nov

PSP PROJECTS has announced its results for the quarter ended September 2019. Here is a detailed performance review of the same:

PSP PROJECTS Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	2,099	3,073	3,125	1.7%	48.9%
Other income	Rs m	54	52	69	32.1%	26.2%
Turnover	Rs m	2,154	3,125	3,194	2.2%	48.3%
Expenses	Rs m	1,806	2,646	2,693	1.8%	49.1%
Gross profit	Rs m	294	427	433	1.4%	47.2%
Depreciation	Rs m	58	59	62	5.5%	7.3%
Interest	Rs m	23	28	37	33.1%	61.4%
Profit before tax	Rs m	267	392	402	2.6%	50.4%
Tax	Rs m	92	137	75	-45.2%	-18.2%
Profit after tax	Rs m	176	255	327	28.2%	86.4%
Gross profit margin	%	14.0	13.9	13.8
Effective tax rate	%	34.4	34.9	18.7
Net profit margin	%	8.2	8.2	10.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 48.9% on a year-on-year (YoY) basis. The expenses were up by 49.1% YoY during the same period.
• The company's operating profit increased by 47.2% YoY during the quarter. Consequently, operating profit margins remained same and stood at 13.8% in 2QFY20.
• Depreciation charges increased by 7.3% and finance costs increased by 61.4% YoY, respectively.
• Other income increased by 26.2% YoY during the quarter.
• Net profit for the quarter increased by 86.4% YoY. Net profit margins during the quarter increased from 8.2% in 2QFY19 to 10.2% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 1.7% on a quarter-on-quarter (QoQ) basis. The expenses were up by 1.8% QoQ during the same period.
• The company's operating profit increased by 1.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 13.8% in 2QFY20 as against 13.9% in 1QFY19.
• Net profit for the quarter increased by 28.2% QoQ, while net profit margins increased from 8.2% in 1QFY19 to 10.2% in 2QFY20.

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 up from Rs 363.4 to Rs 540.0, registering a Gain of Rs 176.6 or around 48.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,097.1 (up 1.7%). Over the last one year it has moved up from 1,717.9 to 2,097.1, a gain of 379 points (up 22.1%).

Overall, the S&P BSE SENSEX is up 16.6% over the year.

Current Valuations

At the current price of Rs 540.0, the price to earnings (P/E) ratio of PSP PROJECTS stands at 17.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 6.4 times.