PSP Projects' Financial Results for Q2 FY25 Show Significant Decline, MarketsMOJO Gives 'Sell' Call

PSP Projects, a smallcap company in the construction and real estate industry, recently declared its financial results for the quarter ending September 2024. However, the company’s performance has been deemed as very negative by MarketsMOJO, who have given a ‘Sell’ call for its stock.

According to the financials, PSP Projects has seen a significant decline in its profit before tax (PBT) and profit after tax (PAT) by -80.11% and -73.5% respectively, compared to the same quarter last year. The company’s operating cash flow has also been on a downward trend for the past three years, with a negative value of Rs -223.98 crore. This indicates a decrease in cash revenues from business operations.

Furthermore, PSP Projects’ ability to manage interest payments has deteriorated, with the operating profit to interest ratio being at its lowest in the last five quarters. The company’s net sales have also shown a negative trend, with a decline of -5.44% compared to the previous year. The operating profit margin has also decreased to its lowest at 6.42%, indicating a decline in efficiency.

Moreover, the company’s non-operating income, which is 33.46% of its PBT, is a cause for concern as it is not a sustainable business model. The earnings per share (EPS) have also decreased to its lowest at Rs 2.58, indicating a decline in profitability and lower earnings for shareholders.

In conclusion, based on the financial results for the quarter ending September 2024, PSP Projects has shown a very negative performance. Investors are advised to take note of these factors before making any investment decisions.