PSP Projects Limited posted its financial results for the quarter ended December 31, 2024, highlighting a decline in both profit and operational performance.
Key financial highlights:
- Revenue from operations: ₹630.21 crore compared to ₹704.75 crore YoY, showcasing a contraction in top-line growth.
- Net profit: ₹5.05 crore, down significantly from ₹31.08 crore YoY, primarily due to increased expenses and lower margins.
- EBITDA: ₹35.5 crore compared to ₹69.6 crore YoY, marking a decline as margins narrowed.
- EBITDA margin: 5.64%, a sharp decline from 9.88% YoY.
Operational costs and expenses:
- Total expenses: Increased to ₹623.66 crore from ₹669.13 crore in the previous year, mainly due to higher construction and employee costs.
- Construction expenses: ₹325.02 crore compared to ₹385.06 crore YoY, showing controlled project execution amid sector challenges.
Tax and profitability:
- Tax expenses: ₹3.74 crore in Q3 FY25, showing a decline from the previous year due to reduced earnings.
- Profit before tax: ₹6.58 crore compared to ₹31.06 crore YoY, demonstrating the company’s struggle with cost control.
Management outlook:
The company’s declining EBITDA margin and profit reflect ongoing challenges in project execution and cost management. Management remains focused on optimizing efficiency across ongoing projects to restore profitability.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always consult a financial advisor before making investment decisions.
