Vascon Engineers Limited has informed the Exchange regarding Investor Presentation
Date: February 13, 2019 National Stock Exchange of India Limited, To,
BSE Limited, To,
Listing Department, Exchange Plaza, Bandra (E), Mumbai – 400 051 Ref Symbol:
VASCONEQ
Subject: Presentation Update
Dear Sir/ Madam,
The Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 001 Ref: Scrip Code:
533156
Please find enclosed Presentation by the Company Post Board meeting.
This is for your information and records.
Thanking you,
Vascon Engineers Limited,
For
Vibhuti Dani Company Secretary and Compliance Officer
Enclosures: as above
This document is signed electronically
VASCON ENGINEERS INVESTOR PRESENTATION | FEBRUARY 2019
DISCLAIMER
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This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vascon Engineers Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or ( invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
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This Presentation has been prepared by the Company based on information and data which the Company considers reliable, Thi P d but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
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Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward‐looking statements. Such forward‐looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the real estate & infrastructure industry in India and d world‐wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward looking information contained in this Presentation. Presentation The Company assumes no obligation to update any forward‐looking information contained in this Presentation Any forward‐looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
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Key Development & K D l t& Financial Highlights
KEY HIGHLIGHTS – 9MFY19
EPC Business
Rs 877 Cr R 877 C Total Order Book
Rs 719 Cr R 719 C External Orders
Rs 158 Cr R 158 C Internal Orders
Rs 226 Cr Order Intake in 9MFY19 R 226 C O d k i 9MFY19 I
Real Estate Business
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New Sale booking of 3,28,667 sqft for a total sales ki N value of Rs 194 Cr in 9MFY19
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Sale of Amenity plot along with school building for total
Non Core Assets
consideration of Rs 36.50 Cr
Sale of S l f
land parcel at Balewadi, Baner l d
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for f
total l
consideration of Rs 100 Cr (Vascon share Rs 13.10 Cr)
P&L HIGHLIGHTS- STANDALONE
Particulars (Rs. Cr) Particulars (Rs. Cr)
Revenue
Other Income
Total Income
Construction Expenses / Material Consumed
Employee Cost
Other Expenses
EBITDA
EBIDTA Margin (%)
Depreciation Depreciation
Finance Costs
Profit Before Tax
Tax
Profit After Tax
Other Comprehensive Income
Total Comprehensive Income
FY19 Q3 Q3 FY19 (with out (with out IndInd AS 115) AS 115)
FY19 Q3 Q3 FY19
FY18 Q3 Q3 FY18
85.83
7.74
93.57
58.44
10.28
8.42
16.43
18%
2.13 2 13
6.62
7.68
‐0.03
7.71
‐0.15
7.56
82.13
7.74
89.87
54.46
10.28
8.42
16.71
19%
2.13 2 13
6.62
7.96
‐0.03
7.99
‐0.15
7.84
93.51
1.74
95.25
67.17
13.00
6.89
8.19
9%
1.95 1 95
3.78
2.46
‐
2.46
0.11
2.57
FY19 9M9M FY19 (with out (with out IndInd AS 115) AS 115)
258.32
23.84
282.16
FY19 9M9M FY19
FY18 9M9M FY18
FY18 FY18
245.66
23.84
269.50
229.49
335.35
8.98
24.06
238.47
359.41
189.79
179.51
162.67
249.45
35.16
24.58
32.63
12%
6.01 6 01
16.92
9.70
‐1.02
10.72
‐0.36
10.36
35.16
24.58
30.25
11%
6.01 6 01
16.91
7.323
‐1.02
8.35
‐0.36
7.99
32.63
17.22
25.95
11%
5.45 5 45
15.05
5.45
‐
5.45
0.08
5.53
46.45
25.22
38.29
11%
7.52 7 52
19.36
11.41
0.02
11.39
0.24
11.63
SEGMENTAL PROFIT & LOSS - AFTER ALLOCATION
RE # RE #
EPC ## EPC ##
Inventorised Inventorised
Total Total
Total Total (without effect (without effect AS 115) for IndInd AS 115) for
RE RE (without effect (without effect AS 115) for IndInd AS 115) for
51.37
5.02
56.39
36.82 36.82
14.55
28%
16.79
14.59
38.71
5.02
43.73
26.54 26.54
12.17
31%
16.79
14.59
‐11.81
‐14.19
0.90
‐12.71
0.90
‐15.09
Particulars (Rs. Cr)) Particulars (Rs. Cr
Revenue
Other Income
Total Income
Cost of Sales Cost of Sales
Gross Profit
Gross Profit Margin %
Employee Cost
Other Expenses
EBITDA
EBIDTA Margin (%)
Depreciation
EBIT
EBIT Margin (%)
Finance Costs
Profit Before Tax
Tax
Profit After Tax
‐
5.61 5.61
250.88
19.28
270.16
188.25 188.25
62.63
25%
18.37
13.26
50.27
20%
5.20
45.07
18%
289.59
24.30
313.89
220.40 220.40
69.19
24%
35.16
27.85
30.48
11%
6.10
24.38
8%
16.98
7.41
‐0.94
8.35
302.25
24.30
326.55
230.68 230.68
71.57
24%
35.16
27.85
32.85
11%
6.10 26.76
9%
16.98
9.79 ‐0.94
10.73
# IT INCLUDES REVENUE & EXPENSES RELATED TO AJANTA ENTERPRISE & PHOENIX VENTURES, IN FINANCIALS SHARE OF PROFIT IS TAKEN (AS PER IND AS ) ## IT INCLUDES INTERNAL EPC ORDER REVENUE AND CONSTRUCTION EXPENSES
VASCON – AT PRESENT
ENGINEERING PROCUREMENT & ENGINEERING PROCUREMENT & CONSTRUCTION
One of the leading EPC Company in India
REAL ESTATE DEVELOPMENT
Focus on Affordable Housing
Engineering E i i Procurement & Construction Construction
EPC BUSINESS
Construction Experience across various verticals
Executed over 200 projects with construction area of over 50 msft
Ability to execute around 8 msft per annum
Currently executing around 3 msft p a – operating at 40% Currently executing around 3 msft p.a. operating at 40% utilization
Number of Personnel in Project / Engineering team ‐ 489
Higher margins Because of Turnkey Capabilities
In‐house Design and Engineering team
Ability to demand premium over other construction companies
New Orders Target
Focus on Affordable Housing
Focus on large and high value civil contracts by Government Agencies and reputed Private Companies Agencies and reputed Private Companies
Generate positive cash flows from all the projects and
re‐invest to drive growth
CONSISTENT ORDER INTAKE
Opening Opening External Order Book
508
STRONG ORDER INTAKE OF ~RS 226 CR IN 9M FY19
External Order Order Book
719
220
190
80
70
97
82236
FY17
Q1FY18
Q2FY18
Q3FY18
Q4FY18
Q1FY19
Q2FY19
Current Order Book
EXECUTION OF NEW ORDERS TO IMPROVE REVENUE & CAPACITY UTILISATION… LEADING TO BETTER OPERATING MARGINS
EXISTING ORDER BOOK
Project External Order book
Adhiraj j Kailash Enclave Ayyalur Godrej Greens Sheth Creators – Malad (I&II) Adoni Sriram Educational Turst Godrej Laguna Everest Enclave TNMC TNMC Other Projects Total
Platinum Square Windermere‐Tower I & II Windermere‐Bunglows Hadapsar School Forest Edge Katvi‐Affordable Housing g
Total EPC Business Order book
Location
Amt (Rs. Cr)
Mumbai Lucknow Ayyalur,Andhra Pradesh Pune Mumbai Adoni, Andhra Pradesh Chennai Chennai Lucknow Chennai Chennai
Internal Order book Pune Pune Pune Pune Pune , g Talegaon, Pune Total
145 100 78 75 72 55 43 34 32 31 31 54 719
1 10 33 18 16 80 158 877
REAL-ESTATE REALESTATE DEVELOPMENT
REAL ESTATE BUSINESS
BRAND EQUITY Landmark developments (Windermere, Forest County and Willows) have established the Brand Vascon in Pune Market
END‐TO‐END CAPABILITIES In‐house Design and Construction team gives us a unique advantage over other Real Estate Developers
LOW OPERATING COST Flat organization structure with agile decision reduces operating cost
ASSET LIGHT MODEL JV and JDA with land owners with low upfront deposit
REAL ESTATE - KEY BUSINESS DRIVERS
g Affordable Housing – the Focus Area
• Focus on developing Affordable Housing projects
• Perfect the Affordable Housing model
in Pune and replicate in
other cities
Launch of new phases in existing projects with clear sales visibility • Launch of new phases in existing projects with clear sales visibility
• Liquidate significant inventory at launch (Positive cashflows from
the beginning of the Project)
INVESTED IN STRENGTHENING REAL ESTATE TEAM
100
60
Key Steps taken in last Financial Year
• CEO (Real Estate) appointed with clear focus on Real Estate
business
• Appointed separate heads for Sales, Marketing and CRM Function
• Real Estate team size grew from 7 people in March 2017 to 60 professionals at present; target to increase it to 100 people dynamic team
7
Mar‐17
Mar‐18
Target
Number of employees
SUCCESSFULLY LAUNCHED REAL ESTATE PROJECTS SUCCESSFULLY LAUNCHED REAL ESTATE PROJECTS
PROJECTS
Forest Edge (JV)
Windermere (JV)#
Vascon Goodlife – Value Home (Own) Value Home (Own)
Xotech
DEV. AREA (MSFT)
0.08
0.38
0.46
0.04
LAUNCH
STATUS
Jan 2018
Fully sold
Mar 2018
May 2018
REAL ESTATE SALES (RS CR)
197
194
60
Oct 2018
Fully Sold
FY17
FY18
9M FY 19
FOREST EDGE KHARADI, PUNE “FOREST EDGE” – KHARADI PUNE
VASCON GOODLIFE ‐ KATVI, TALEGAON VASCON GOODLIFE ‐ KATVI TALEGAON
RE‐LAUNCH OF WINDERMERE# RE‐LAUNCH OF WINDERMERE#
NEW SALE BOOKING OF ~3,28,677 SQFT FOR A TOTAL SALES VALUE OF ~RS. 194 CR IN 9M FY19 AGAINST
SALE BOOKING OF ~2,46,867 SQFT FOR A TOTAL SALES VALUE OF ~RS. 197 CR IN FY18
CURRENT REAL ESTATE PROJECTS UNDER DEVELOPMENT CURRENT REAL ESTATE PROJECTS UNDER DEVELOPMENT
Project Name
Location
Vascon Share
Project Project Area
Area Sold Sale Value Collection
Sale Sale Value
Collection
Rev. Rev Recognized
Total
Vascon Share
Type
Share
msft
msft
Rs. Cr
Rs. Cr
Rs. Cr
Rs. Cr
Rs. Cr
Forest Edge
Pune
JV
50%
0.08
0.08
54
23
Windmere Residential
Pune
JDA
45%
0.38
0.18
199
134
Platinum Square
Pune
JV
70%
0.13
0.13
132
105
Vascon GoodLife
Talegaon
Own
100%
0.46
0.18
Xotech
Hinjewadi
JV
50%
0.04
0.04
64
18
3
2
27
90
92
64
9
12
60
74
3
1
‐
80
75
‐
‐
Total
1.09
0.60
467
266
282
150
155
THANK YOU!
Mr. M. Krishnamurthi / Mr. Punit Bhayani punit@vascon.com
mk_murthi@vascon.com
Vascon Weikfield Chambers, Pune - 411014
Mr. Vikash Verma / Ms. Hina Agarwal vikash.verma@stellar-ir.com hina@stellar-ir.com
@
@
Kanakia Wall Street, Andheri (East), Mumbai 400 093