PSP Projects Limited

Investor Presentation – Q3FY19

February 2019
HURUN REPORT INDIA
OUR MANAGING DIRECTOR
& CEO, MR. P.S.PATEL IS
AWARDED WITH THE 2018
“MOST RESPECTED
ENTREPRENEUR AWARD -
CONSTRUCTION” BY
HURUN REPORT INDIA ON
13TH DECEMBER 2018 AT
MUMBAI

13th Dec 2018,

Four Seasons, Mumbai
FINANCIAL SNAPSHOT
Result summary Q3 FY19 (Rs. Cr.)
Revenue from operations EBITDA PAT

139.55 261.09 18.63 36.69 12.67 21.48

26.55 15.14
170.8
77.64 11.25
6.43
53% 38% 42%

Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19

Result summary 9M FY19 (Rs. Cr.)

Revenue from operations EBITDA PAT

295.35 38.54 99.07 26.17 60.17

705.76

163.70 23.09
65.1 41.31
466.15 51% 52% 46%

9M FY18 9M FY19 9M FY18 9M FY19 9M FY18 9M FY19

RIGHT COMPANY, RIGHT PLACE,
RIGHT TIME.
Multidisciplinary Design to Experience across Multiple and
construction construction to allied industrial, concurrent project
company offering a works to interior fit institutional, management
diversified range of outs government, capability
construction and government
allied services residential and
residential projects
1 2 3 4
Unmatched track Executing projects Business Execution
record of timely and largely in Gujarat; commitment resulted experience in smart
quality delivery gradually turning in repeat business cities
pan-India from a number of
clients

5 6 7 8
PSP PROJECTS

10 114
Years in Projects
existence delivered

40 2,701
Projects under (Rs/cr) Order book as
execution (as on 31st on 31st December
December 2018) 2018
CAPABILITIES
People ramp-up Plants, machinery IT investments Capability
15 in 2008 to more and vehicles Implemented SAP and Multiple project
than 1000 direct plus Invested Rs 132 cr in CANDY; enhanced location management
8000+ contract assets for timely informed decision-
employees project delivery making

1 2 3 4
Proven Diverse capability Customer types Accreditation
Extensive experience Multi-storied buildings, Government and ISO 9001, ISO 14001
and proven track high-rises, hospitals, private clients and ISO 45001
record in delivering industrial buildings, (quality, environment
high-valued and time- educational protection and worker
critical projects with institutions, safety)
quality commercial buildings

5 6 7 8
 Marquee Project
Executing single-largest contract of Rs 1575# cr of Surat Diamond Bourse

#Excluding GST
Project tenure: 30 months
SURAT DIAMOND – WIP (ACTUAL SITE IMAGES)

To do
SURAT DIAMOND – WIP (ACTUAL SITE IMAGES)
WORK ON HAND (MAJOR PROJECTS)
(Rs. Lakhs)
Outstanding Order
Project Client Project Value
Book

Surat Diamond Bourse Main Contract Works SDB Diamond Bourse 157,500 128,386

Construction of Medical College and Hospital at Ramanbhai Foundation

22,500 21,291
Dahod, Gujarat (Zydus Cadila Group)
Pandharpur Municipal
Affordable Housing at Pandharpur, Maharastra 17,645 17,645
Corporation
Dalal Street Commercial
Multi-tenanted office for DSCCSL at GIFT City, Gujarat 13,050 13,050
Cooperative Society Ltd.

Zydus Hospitals & Healthcare

Zydus Hospital at Baroda, Gujarat 10,160 10,160
Research Pvt. Ltd.
Factory Building for the proposed LMC Plant at Dahej,
MRF LIMITED 8,390 7,392
Gujarat
Super specialty Block of Government Medical College
Bridge & Roof Co. (India) Ltd 7,860 6,984
at Bhavnagar Gujarat

Hospital Building near Sugen Mega Power Project,

Tornascent Care Institute 6,788 6,576
Surat

Student Activity Center, Ahmedabad Ahmedabad University 5,150 5,150

PREFERRED CHOICE
Frugal cost Active promoter Track record of
structure; involvement; timely projects
enhanced enhanced client completion with
competitiveness assurance committed quality

Large and multiple Select choice of AVERAGE

project margin-enhancing TICKET SIZE OF
management projects PROJECTS
capability

Rs 30.30 Cr
In 2018-19
(31.12.2018)

PROJECTS UNDER EXECUTION

40 (as on 31st Dec 2018) Rs 8.54Cr

In 2012-13
STRENGTHS
Execution record: Robust orders: Experience: Financial
Diverse projects Order book of Promoter strength:
mix; completed Rs 2701 cr as on (Prahaladbhai A strong balance
projects across 31st Dec 2018 (to Shivrambhai Patel) sheet helps in
segments. be addressed with 30+ years of successful project
within 24 to 30 sectoral completion
months) experience;
supported by
experienced
professionals

1 2 3 4
PSP received repeat business from
Torrent Pharma, Cadila Healthcare, DDU, BAMUL.
 Quality
 Build to last
1
 Operating manuals are strictly followed
 Strict guidelines for materials used for construction

Plant and machinery

 Owns state-of-the-art machinery
2
 Captive equipment bank
 Imported machinery for external plaster, painting and formwork material among others

PILLARS Execution planning 3

OF  Centralised project monitoring team
SUCCESS  Meticulous planning involving finance, manpower, plant and machineries helped in
continued organisational success

Supply chain management

 Long-term association with suppliers and contractors for quality and assured supply
4
 Track record of on-time payment

Worker safety
 Ensures the standard operating procedures are maintained across sites
5
 Conducts general and job specific safety trainings, mock drills, tool box talks, safety
awareness programmes, medical check-up and other programs in the interest of workers
WIDENING HORIZONS

“
“
Focus on buildings Steady investment Strong qualification
construction in people, capabilities to
(commercial, equipment, participate in high-

Building is
residential, technology and value projects
industrial and systems, (worth Rs 400-500
institutional) strengthening crore) across India

my passion
business
sustainability

P.S. Patel,
Chairman, Managing Director and CEO Extending from Executing two Intending to
Gujarat to other projects each in increase non-
geographies; Rajasthan and Gujarat revenue to
infrastructure in Karnataka; 30% of total
place Awarded one business
Project in
Maharastra
WIDENING HORIZONS Contd…
- STANDALONE WORK ON HAND RS. 2701 CR.
0.76% 6.41% 6.53%
2.48%
7.17%
2.56%

6.76%

78.90%

88.43%
Government Govt Residential Industrial
Institutional Residential Gujarat Rajasthan Karnataka Maharastra
 WIDENING HORIZONS Contd…
STANDALONE WORK ON HAND RS. 1417 CR. (EXCLUDING SURAT DIAMOND BOURSE PROJECT)
1.45%
12.22% 12.45%

4.73%
13.66%
4.88%

59.79%

12.88%

77.94%

Government Govt Residential Industrial

Institutional Residential Gujarat Rajasthan Karnataka Maharastra
WIDENING HORIZONS Contd… –
REVENUE BREAK-UP FOR THE Q3FY19 – RS. 261.09 CR
2.52% 6.37%
9.25%
1.92% 6.70%

15.79%

70.52%

86.93%

Government Govt Residential Industrial

Institutional Residential Gujarat Rajasthan Karnataka
EXPANDING HORIZON: ONE-STOP
BUILDINGS CONSTRUCTION SHOP

Extended to
Mechanical, Now providing Complementary
Commenced as Engineering and complete solution alliances with
Civil construction Plumbing (MEP), – Design to major design firms
contractor Interior & now construction – and MEP
O&M Services one-stop shop consultants
too.
PROMINENT PROJECTS COMPLETED IN FY19

Brigade International Financial Renovation of Gujarat Sabarmati Riverfront

Centre at GIFT City, Vidhansabha, Gandhinagar Development Co. Ltd. (SRFDCL)
Gandhinagar Office Building, Ahmedabad
PROMINENT PROJECTS

Swarnim Sankul 1 & 2 Sabarmati River Front development Hospital, Residential Building and Medical
Construction and interior work College for GCS Medical College, Hospital and
Research Centre

Zydus Hospitals Kaira District Co-operative Milk Producers’ Gujarat Housing Board,Naranpura, one of the
Union Limited (Amul Dairy) Largest affordable housing project in Gujarat
PRIDE-ENHANCING CLIENTELE
 Sabarmati Riverfront Development Corporation Limited,
 Cadila Healthcare Limited,
 Care Institute of Medical Sciences Limited (CIMS),
 Claris Injectables Limited,
 Emcure Pharmaceuticals Limited,
 Gelco Electronics Private Limited,
 GCS Medical College, Hospital and Research Centre
(managed by the Gujarat Cancer Society),
 The Government of Gujarat (through the Executive
Engineer, Capital Project Division),
 Inductotherm (India) Private Limited,
 Intas Pharmaceutical Limited,
 Kaira District Co-operative Milk Producers’ Union Limited
(Amul Dairy),
 KHS Machinery Private Limited,
 Nirma Limited,
 Torrent Pharmaceuticals Limited
 WTC Noida Development Company Private Limited
 SDB Diamond Bourse
BUSINESS ROBUSTNESS IN NUMBERS
Revenue (Rs crore) EBIDTA (Rs crore) PAT (Rs crore)
#CAGR% 36.61% #CAGR% 57.79% #CAGR% 59.83%

64.34
101.39
748.20

60.17
99.07
722.10

41.31
65.84
468.24
413.96

25.13
286.89

39.27
214.80

13.86
21.74
16.36

9.86
2019*
2019*

2019*
2014

2015

2016

2017

2018
2014

2015

2016

2017

2018

2014

2015

2016

2017

2018
(*till 31st Dec (*till 31st Dec (*till 31st Dec
2018) 2018) 2018)

#CAGR based on five years completing on 31.03.2018

BUSINESS ROBUSTNESS IN NUMBERS (STANDALONE)

EBIDTA margin% PAT margin%

16.45%

10.00%
14.04%
13.89%

8.60%

8.33%
5.37%
8.57%

4.83%
7.75%

2019*

2019*
2015

2016

2017

2018

2015

2016

2017

2018
(*till 31st Dec 2018) (*till 31st Dec 2018)
PERFORMANCE HIGHLIGHTS (STANDALONE)

No. of projects awarded Order book Employee strength

(Rs. in crores)

1043
2701
27

2559
23
22

767
14
14

489
484
729.17

292
487.67
338.08
2019*

2019*

2019*
2015

2016

2017

2018

2015

2016

2017

2018

2015

2016

2017

2018
(*till 31st Dec 2018) (*till 31st Dec 2018) (*till 31st Dec 2018)
SEQUENTIAL QUARTERLY PERFORMANCE
Q3FY19 Standalone unaudited Profit & Loss Statement (Ind AS) (Rs. In Lakhs)
Particulars Q3 FY19 Q2 FY19 Q3 FY18 Q-o-Q Y-o-Y 9MFY19 9MFY18 Y-o-Y

Revenue from Operations 26,108.91 20,994.88 17,079.98 24% 53% 70,575.69 46,615.34 51%
Cost of materials consumed including WIP 10,140.37 7,219.78 5,644.75 28,991.50 18,131.12

Subcontracting Expenses 4,807.16 3,756.44 2,996.00 11,012.85 6,312.67

Construction Expenses 6,183.67 5,713.22 4,887.68 16,718.17 13,082.86

Employee benefits expense 1,073.47 1,077.80 739.71 3,150.75 2,011.82

Other expenses 234.79 289.85 156.35 795.76 566.62

Total Operating Expenses 22,439.46 18,057.09 14,424.49 24% 56% 60,669.03 40,105.09 51%
EBITDA 3,669.45 2,937.79 2,655.49 25% 38% 9,906.66 6,510.25 52%
EBITDA Margin (%) 14.05% 13.99% 15.55% 14.04% 13.97%

Other Income 482.79 543.17 322.24 1,634.67 1,251.43

Finance costs 225.34 227.19 233.72 598.16 571.17

Depreciation 620.57 578.90 276.55 1,680.81 688.88

Profit Before Tax 3,306.33 2,674.87 2,467.46 24% 34% 9,262.36 6,501.63 42%
Tax Expense 1,160.04 918.98 949.68 3,251.73 2,361.52

Other comprehensive income 2.20 29.94 (3.88) 6.61 (9.35)

Profit After Tax 2,148.49 1,785.83 1,513.90 20% 42% 6,017.24 4,130.76 46%
PAT Margin (%) 8.08% 8.29% 8.70% 8.33% 8.63%

EPS (INR) 5.96 4.88 4.25 16.70 11.98

EXPERIENCED MANAGEMENT

Bachelor’s degree in civil engineering

30+ years of construction experience

Featured in book ‘Business Game Changer: Shoonya

se Shikhar’ by Prakash Biyani and Kamlesh
Maheshwari, Received ‘The Dena Bank Hercules
Prahaladbhai Award’ by Gujarat Innovation Society for innovation
Shivrambhai Patel and quality in India’s construction and infrastructure
Chairman, Managing
Director and CEO sector.
EXPERIENCED MANAGEMENT contd…

Mahesh Patel Maulik Patel Hetal Patel R.B.Parmar Pratik Thakkar

Vice President – Director – Procurement Chief Financial Officer General Manger – Tender General Manager –
Operations Business Development

Mahesh Patel is the Vice Maulik Patel is the Hetal Patel is the Chief Ramjibhai Parmar is the Pratik Thakkar is General
President - Operations of Director - Procurement of Financial Officer of our General Manger - Tender Manager - Business
our Company. He holds a our Company. Along with Company. She holds a of our Company. He holds Development of our
degree of diploma in civil Mahesh Patel, Maulik Master’s degree in a Diploma in Civil company. He holds a
engineering. He has been Patel is also associated commerce from Gujarat Engineering. He has 30 Bachelor’s Degree in
with the company since with company since University. She is a years experience in Commerce and a Diploma
inception & has played a company’s establishment member of the Institute of Contracts & Tendering of in Marketing
major role in company’s & has played a vital role in Chartered Accountant of a Construction Industry. Management. He has 10
success, He has 25 years company’s success story. India. She is also a years’ experience in
of experience in project He holds a Bachelor’s certified internal auditor Business Development in
execution the construction Degree in Commerce. from the Institute of Construction Industry.
industry. Internal Auditors, USA.
She has 18 years of
experience in accounts
and finance.
INFLECTION POINTS IN OUR JOURNEY

2008 2009 2009 2010 2011 2011 2012 2014 2014

Aug Apr Dec Jul Jan Dec Apr Apr Apr

Incorporation Acquired the Opportunity to Commenced Awarded order to Awarded. Narendra SAP Started Design and Managing Director
business of BPC construct Medical working on construct 72 meter Modi’s pet project implementation construction of 45m profiled in ‘Business
Projects College & Hospital Narendra Modi’s Zydus Hospital, to construct office high (28 towers) Game Changers -
for Gujarat Cancer dream development Ahmedabad building for Chief affordable housing Shunya Se Shikhar’
Society project of Ministers and project for Gujarat book
Sabarmati riverfront Cabinet Ministers at government
Sachivalaya (Gujarat Housing
(Swarnim Sankul 01 Board) at
& 02) Transportnode
Naranpura

2016 2016 2017 2017 2017 2017 2017 2017 2018

Apr Jul Jan May May Jun Jul Oct Sept

Awarded ‘Excellent Turnkey project for Participated in Honoured by Listed on NSE and Our project ‘The Awarded Most Awarded Asia’s Awarded as one of
Contractor of the Gujarat Housing Vibrant Gujarat Quality Mark BSE Signature by Admired biggest office India’s “Top
Year 2016’ award Board in Global Trade Show Awards 2017 Hiranandani’ at Multidisciplinary building Challengers” at
by Gujarat Transportnode, 2017 (Building & GIFT City, Construction construction project 16th Construction
Contractor Ahmedabad, Construction Gandhinagar, Company of the for Surat Diamond World Global
Association awarded Affordable Category) by awarded Excellence Year (Gujarat) Bourse (6.5 mn sq Awards 2018, New
Housing Project of Quality Mark Trust in Delivery Award award by The ft built-up area). Delhi.
the Year Award by by Realty Plus Rising Leadership
Realty Plus Excellence Awards Awards 2017
Excellence Awards (Gujarat) 2017
(Gujarat) 2016
PROJECT
CLASSIFICATION 1

Industrial projects
PROJECT
CLASSIFICATION 2
 Construction of industrial buildings for
pharmaceutical plants, food processing units,
engineering units as well as manufacturing Institutional Projects
and processing facilities.
 Construction of buildings for hospitals and
 Rich experience in catering to healthcare services, educational institutes,
pharmaceutical manufacturers malls, hospitality services and corporate
offices.
 Constructed industrial facilities for Torrent
Pharmaceuticals, Nirma, Intas  Track record comprises Zydus Hospital, GCS
Pharmaceuticals, Cadila Healthcare, Claris Medical College, Hospital and Research
Injectables, KHS Machinery and Centre, Nirma Vidya Vihar and hostel
Inductotherm (India) among others building for PDPU, among others.

48 35
Number of industrial Number of institutional
projects executed projects executed
PROJECT
CLASSIFICATION 3

Government projects PROJECT

 Focus only on challenging and prestigious CLASSIFICATION 4
government projects

 Executed marquee projects (Swarnim Sankul Government residential projects

01 and 02 at Gandhinagar, Sabarmati
Riverfront Development project works in  Execution of prestigious government
Ahmedabad, ICEM Building interiors in affordable residential projects
Ahmedabad)
 Design-build of affordable high-rise
residential buildings cum commercial units in
Gujarat under the Mukhya Mantri GRUH
20 Yojana for major Gujarat-based public sector
customer.
Number of government
projects executed

2
Number of government
residential projects executed
PROJECT
CLASSIFICATION 5

Residential projects
 Construction of buildings for group housing
and townships

 Construction of independent residences for

select private customers.

9
Number of residential
projects executed
CERTIFICATIONS

ISO 9001:2015,
ISO 14001:2015,
ISO 45001:2018

Approved Contractor as ‘AA’ class

and “Special Category–1 in Buildings
Class” with Government of Gujarat
Registered as ‘A’ class approved
electrical contractor in Roads and
Buildings Department, Government
of Gujarat
PRESENCE IN THE EMERGING SECTORS
LIKE SMART CITIES

Awarded 7 out of 9 Complying with all

projects in India’s the norms required
first Smart City – for building
Gift City in construction on
Gandhinagar smart cities like
green building
norms among others

100
Constructing Asia’s
biggest office
building in DREAM
City, Surat Proposed smart
cities by the
government of India
INDIA. LEAPING GIANT.

Sixth largest global Forex reserves US$400 Per capita income Rs Exports grew 11.52% ($
economy (nominal GDP bn (September 8, 2017) 103,219 (grew 9.7% over terms) in April-Sept 2017
US$2.454 tn, 2017) 2015-16) (over previous
corresponding period)

66% of population in US$498 bn 33 million tertiary Urbanization from 35

working age group cumulative FDI inflow education annual agglomerations with
(global largest) (2000-01 to June 2017) student enrolment 1mn-plus population in
2001 to 53 in 2011
INDIA: RAPIDLY INCREASING CONSTRUCTION NEEDS

 Growing Indian youth population (465 mn estimated, 2021)

 Growing middle-class population (300-350 mn estimated)

 20 mn unit urban housing shortage* Focus on affordable housing by the Indian

government - focus on ‘Housing for All’

 Make in India (driving industrial demand)

 Growing family nuclearisation (driving residential demand)

 Declining interest rates driving new projects

 Interest rate subvention for affordable housing projects

INDIA: RAPIDLY INCREASING CONSTRUCTION NEEDS

 Significant healthcare segment investments - 3 million beds needed to achieve

3 beds / 1,000 people target by 2025

 Commercial real estate supply in top Indian cities is expected to be at 40-50 mn

sq. ft per year until 2020

 Government announced eight Investment Regions along the Delhi Mumbai

Industrial Corridor (DMIC) project as National Investment and Manufacturing
Zones (NIMZs)

 Government focus on building smart cities

 Rising retail space demand from international brands

 Dedicated clusters across proposed industrial corridors

 OPPORTUNITIES
Simplified tax Single window
structure like clearance for
GST projects

Construction Better FDI Make in India

industry annual
growth rate
norms initiative
attracting
investments in
manufacturing
3.95% 2012-16
4.16% 2017-2021
WE END WITH A BIG PICTURE ONCE AGAIN…
Independent India took just India likely to
India took 60 seven emerge as a
years to become subsequent US$7 tn
a USD1 tn years for the next economy by
economy trillion 2030

Growing India Companies that Companies like

will need focused can building PSP Projects
construction complex
companies structures in the
shortest time
 SAFE HARBOR STATEMENT
Statements in this ‘Presentation’ describing the Company’s objectives, estimates,
expectations or predictions may be “forward looking statements” within the meaning
of applicable securities laws and regulations. Actual results could differ materially
from those expressed or implied. Important factors that could make difference to the
Company’s operations include global and Indian demand supply conditions, finished
goods prices, feedstock availability and prices, cyclical demand and pricing in the
Company’s principal markets, changes in Government regulations, tax regimes,
economic developments within India and the countries within which the Company
conducts business and other factors such as litigation and labour negotiations. The
Company assumes no responsibility to publicly amend, modify or revise any
forward looking statement, on the basis of any subsequent development,
information or events, or otherwise.
 PSP Projects Ltd.
‘‘PSP House”, Opp. Celesta Courtyard, Opp. Lane of Vikramnagar Colony,
Iscon-Ambli Road, Ahmedabad - 380058
P - +91 79 2693 6200/6300/6400
E – hetal@pspprojects.com I W – www.pspprojects.com