In a chat with ET Now, PS Patel , Chairman & MD , PSP Projects said the basic difference with his peers was that PSP was more known in the Rs 20 crore to Rs 150 crore range. Edited excerpts:
You are a public company now and I am sure it must be a great moment for you. Tell us about the fund utilisation and roadmap, it was well defined in the prospectus but I want to hear that once again from you?
We are going to utilise this Rs 63 crore for the working capital, Rs 51 crore is for the capex and the rest of the money will be utilised for general corporate purpose. And the projects which we are presently doing in and around Ahmadabad are river front and World Trade Centre, Brigade Commercial Centre and Prestige Commercial Centre in the Gift City. In pharma sector we are doing one industry for Intas, one for Cadila Healthcare and one corporate office at SVGA Gandhinagar.
Compared with your current EBITDA margins of 14-14% what is the uptick that we can look forward to in the next couple of years?
Since last one and half- two years, the EBITDA level had been ranging from 12-14% . So we will be aiming at 12-14 % EBITDA and 9-10% as PAT.
So from a small base your revenue is growing up rapidly thanks to your focus on private projects in Gujarat, can you tell me will you be centring your business only in Gujarat?
We started our company at Rs 28 crore turnover and have landed at Rs 250 crore last year. The basic difference between my peer and me is that we are more known into private sectors ranging from Rs 20 crore to Rs 150 crores. Our quality of work, our delivery or speed of work is so remarkable that we have been getting repeated orders from all major clients like Torrent, Intas, Cadila so that is the key benchmark or the key factor which is affecting my company.
So update us on the pipeline and the projects that you have L1 status in and the upcoming chunky projects that you are looking to bid for?
For March 2018, we are having an order book of Rs 729 crores, so about Rs 600 crore turnover is going to come from this present order book only. We are doing four projects out of six major projects going on in Gift City. Still, 882 acres of land needs to be developed, 150 projects are there to come so we see a larger order book coming from Gift City. We are getting repeated orders from pharmaceuticals. We are also bidding for the big project of Diamond Bush which is coming in Green City, Surat. In the next one year we are hoping a large volume of projects where we can bid.
What is your milestone for 2020?
My company should reach to Rs 1500 crore turnover by 2020, this is what I am aiming at.