PSP Projects Ltd

- PSP Projects Limited is increasing its borrowing limits: - Current overall limit is around Rs. 1,050 crore (Rs. 120 crore fund-based). - They plan to increase it to Rs. 1,500 crore with fund-based limits around Rs. 145 crore. - Maximum authorized borrowing limit is kept at Rs. 3,000 crore to maintain flexibility as needed. - The increase in bank guarantee (non-fund-based) limits is planned to facilitate large projects like station redevelopment. - No explicit mention of any new equity fundraising in the call. - Debt increase justified by investments in inventory for UP projects and higher working capital needs due to order book growth. - Current outstanding debt increased significantly from Rs. 145 crore (Mar 2023) to Rs. 282 crore (Jun 2023), expected to stabilize around Rs. 180-200 crore by year-end after repayments.

- CAPEX is typically 3% to 4% of revenue, mainly on the project side (Page 16). - Rs. 20 crores CAPEX approved for Precast facility; capacity remains the same but can expand with new inquiries, potentially increasing to 2-3 million sq. ft. in the future (Page 15). - Future expansions possible for beam, column, and slab lines depending on inquiries (Page 15-16). - Precast plant has been expanded partially for infrastructure, including manufacturing ducts for the bullet train to be supplied to L&T (Page 9, 15). - No fixed current CAPEX plan; decisions depend on incoming inquiries and market demand (Page 16). - Investment on UP projects includes inventory mainly for MEP works to ensure timely execution (Page 10). - Borrowing limits being increased from Rs. 1,500 crores up to Rs. 3,000 crores to support future project funding and bank guarantees (Page 7-8).

- The company maintains a revenue guidance of Rs. 2,600 crores for FY24, with no change currently. - Order inflow target for FY24 is set at more than Rs. 3,000 crores. - Bid pipeline stands at around Rs. 6,000 crores, indicating substantial future opportunities. - Growth expected from 7 UP projects, with Rs. 450 crores expected to be completed by March 2024 and ongoing MEP/interior works. - Surat municipal project revenue expected near Rs. 300 crores in FY24, increasing significantly in FY25 due to finishing activities. - Expansion potential in precast and building components to increase capacity and future revenues. - Government infrastructure projects, particularly in Gujarat (which announced Rs. 5 lakh crore investment over 5 years), coupled with private capacity expansion, are expected to drive growth over the next 2-3 years. - Future revenue growth linked to winning large projects, including redevelopment tenders and JV participation, especially in bridge-related projects.

- Revenue guidance for FY24 is maintained at around Rs. 2,600 crore to Rs. 4,000 crore, with order inflow target above Rs. 3,000 crore. - EBITDA margin expected to remain stable in the 11%-13% range, depending on project execution stages. - Net profit for Q1FY24 increased 29% YoY, indicating improving profitability trends. - Interest cost expected to reduce as repayments are made, potentially improving net profits. - Working capital investments and inventory in UP projects may normalize by year-end, aiding cash flows. - Large government projects and infrastructure developments (e.g., Gujarat's Rs. 5 lakh crore budget) provide growth opportunities. - Order book and bid pipeline remain robust at over Rs. 5,300 crore and Rs. 6,000 crore respectively, supporting future revenue growth. - Capex planned at 3%-4% of revenue for capacity expansion aligned with incoming inquiries.

- Outstanding order book as of June 30, 2023: Rs. 5,321 crore (15% YoY growth). - Private projects constitute 46%; Government projects 55%. - 48 ongoing projects: 81% in Gujarat, 19% in Uttar Pradesh. - UP projects outstanding order book: Rs. 576 crore, with Rs. 450 crore expected to be completed by March 2024. - Order inflow during Q1FY24: Rs. 758 crore (excluding GST). - Order inflow target for FY24: More than Rs. 3,000 crore. - Bid pipeline estimated around Rs. 6,000 crore. - Expected bidding for large airport and railway projects in Delhi and Ahmedabad through JVs. - Dharoi Dam development phases II and III bidding expected around Rs. 350 crore each. - Order book excludes outstanding Bhiwandi and Pandharpur orders due to arbitration and court proceedings.