With over 850 highly experienced professionals on board, PSP Projects has a long client list from the institutional sector, commercial and residential areas, industrial and pharmaceutical plants, hotels and hospitality, etc. PS Patel, Chairman, Managing Director and CEO, PSP Projects, shares more...
Highlight one major challenge faced in FY 2017-18.
The average ticket size of projects has gone up from Rs 85.4 million in FY12-13 to Rs 1.10 billion in 2017-18. During the process of continuous growth in large project size, the company visualised that it would face challenges with regards to non-fund based credit facilities (mainly bank guaranties limit) as the company has to submit the bank guarantee in the form of an earnest money deposit (about 1 per cent of tender value), performance bank guarantee (5 per cent of contract value), mobilisation, advance bank guarantee (5-10 per cent of contract value) and retention bank guarantee (5 per cent of contract value) in almost every project.
The company decided to go for a public listing; we came up with an IPO and successfully mobilised Rs 1.41 billion. Today, the company's non-fund based credit facilities stand at Rs 4.1 billion; this was Rs 1.35 billion before the public listing. Post this, we were awarded a single contract of Rs 15.75 billion by Surat Diamond Bourse and were able to submit bank guarantees of Rs 1.57 billion (5 per cent PBG + 5 per cent MA).
What decision do you consider the biggest contributor to the company's growth in FY17-18?
The Indian stock exchange!
This turned out to be a milestone after nine years of our inception. We believe that the listing has enhanced our visibility among prospective customers and employees and has enhanced our profile as a responsible compliance -driven organisation. Also, the company bagged its largest construction contract, to construct Surat Diamond Bourse, which entirely changed our statistics. The company has an order book of Rs 25.59 billion as on March 31, 2018; this was Rs 7.29 billion as on March 31, 2017.
Particulars | Net sales | Adjusted PBDIT | Reported PAT |
---|---|---|---|
FY2018 (Rs billion) | 7.29 | 1.01 | 0.64 |
Growth over FY 2017 (in%) |
82.11 | 53.77 | 55.30 |