Vascon Engineers Limited has informed the Exchange regarding Investor Presentation
Date: May 28, 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
INVESTOR PRESENTATION | May 2019
DISCLAIMER
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.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, 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.
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 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. 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.
DELIVERING CONSISTENT PERFORMANCE
Revenue
EBITDA
PAT
392
54
355
359
284
43
38
44
15
11
8
6
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
STANDALONE NUMBERS (IN RS. CRS)
DESPITE CHALLENGING INDUSTRY ENVIRONMENT, COMPANY HAS MAINTAINED CONSISTENT REVENUE GROWTH
AND FOCUSED ON BUILDING PROFITABILITY
KEY HIGHLIGHTS
EPC Business
Real Estate Business
Rs 1,044 Cr Total Order Book
Rs 907 Cr External Orders
Rs 137 Cr Internal Orders
New Sales booking of 4,20,998 sqft for a total sales value of Rs 272 Cr in FY19
Rs 482 Cr Order Intake since Q1FY19 (includes Rs 172 Cr of order from Tycoon Avanti Projects in May 2019)
Windermere - Sold 51,900 sqft for a sales value of 82 Cr in FY19, also received completion certificate for both the towers
ANNUAL P&L HIGHLIGHTS
Particulars (Rs. Cr)
Revenue
Other Income
Total Income
Construction Expenses / Material Consumed Employee Cost#
Other Expenses
EBITDA
EBIDTA Margin (%)
Depreciation
Finance Costs
Profit Before Tax
Tax
Profit After Tax Other Comprehensive Income Total Comprehensive Income
Standalone
Consolidated
FY19
363.45
28.80
392.25
FY18
335.35
24.06
359.41
FY19
524.11
36.90
561.01
FY18
540.58
37.93
578.51
270.71
249.45
383.29
383.21
43.65
33.36
44.53
11%
7.99
22.35
14.19
-1.02
15.21
-0.32
14.89
46.45
25.22
38.29
11%
7.52
19.36
11.41
0.02
11.39
0.24
11.63
72.26
61.47
43.99
8%
13.42
26.32
4.25
-1.02
5.27
-0.54
4.73
76.87
73.83
44.60
8%
14.32
25.28
5.00
0.35
4.65
0.58
5.23
SEGMENTAL PROFIT & LOSS - AFTER ALLOCATION
Particulars (Rs. Cr)
Revenue
Cost of Sales
Gross Profit
Gross Profit Margin %
Other Income
Employee Cost
Other Expenses
EBITDA
EBIDTA Margin (%)
Depreciation
EBIT
EBIT Margin (%)
Finance Costs
Profit Before Tax
Tax
Profit After Tax
RE (without effect for Ind AS 115
101.65
79.58
22.07
22%
5.72
19.20
19.60
RE#
EPC##
GMP
Inventorised
Total
Total (without effect for Ind AS 115)
86.06
69.29
16.77
19%
5.72
19.20
18.68
1.85
323.55
242.16
81.39
25%
22.46
24.46
17.81
61.58
19%
7.11
54.47
17%
158.79
112.78
46.01
29%
11.18
28.60
28.60
(0.01)
-
5.25
(5.26)
-3%
-
-
-
568.40
426.08
142.32
25%
39.36
72.26
65.09
44.33
8%
13.59
30.74
5%
26.39
4.35
(0.92)
5.27
583.99
435.36
148.63
25%
39.36
72.26
65.47
50.26
9%
13.59
36.67
6%
26.39
10.28
0.55
9.73
(11.01)
(15.39)
-
1.23
(12.24)
-
1.23
(16.62)
-
# 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
BALANCE SHEET- CONSOLIDATED
Rs. Cr
Mar– 19
Mar– 18
Rs. Cr
Mar– 19
Mar– 18
Non-current assets
Fixed assets
Financial Assets
345.39
114.26
187.19
386.66
119.86
195.62
Shareholder’s Fund
Share capital
Other Equity
Non Controlling Interest
Other Non Current assets, Income Tax & Deferred Tax
43.94
71.18
Non-current liabilities
Current assets
Inventories
Investments
985.34
500.23
4.33
935.16
471.53
7.79
Trade receivables
201.67
205.58
Cash and bank balances
72.12
55.83
Loans & Other Financial assets
188.96
169.12
Other current assets
18.03
25.31
Long term borrowings
Other Financial liabilities
Current liabilities
Short term borrowings
Trade Payables
Other Financial liabilities
699.59
178.14
512.10
9.35
159.30
140.22
19.08
471.84
92.76
201.67
31.32
679.00
174.14
493.93
10.93
115.17
90.95
24.22
527.65
111.58
192.81
88.58
Total Assets
1,330.73
1,321.82
Total Liabilities
1,330.73
1,321.82
Other current liabilities & Provisions
146.09
134.68
VASCON – AT PRESENT
ENGINEERING PROCUREMENT & CONSTRUCTION
One of the leading EPC Company in India
REAL ESTATE DEVELOPMENT
Focus on Affordable Housing
ENGINEERING PROCUREMENT & 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% 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
Generate positive cash flows from all the projects and
re-invest to drive growth
MARQUEE CLIENTS
MAINTAINING CONSISTENT QUALITY STANDARDS ENSURING REPEAT ORDERS
CONSISTENT ORDER INTAKE
Opening External Order Book
686
STRONG ORDER INTAKE OF ~RS 482 CR (INCL. RS 172 CR ORDER WON IN MAY 2019)
External Order Book
907
226
84
172
FY18
H1FY19
H2FY19
Q1FY20
Current Order Book
EXECUTION OF NEW ORDERS TO IMPROVE REVENUE & CAPACITY UTILISATION… LEADING TO BETTER OPERATING MARGINS
EXISTING ORDER BOOK
Project
Tycoon Adhiraj Kailash Enclave Adampur Airport Ayyalur Godrej Greens Sheth Creators – Malad (I&II) Adoni Sriram Educational Trust Godrej Laguna Everest Enclave TNMC Other Projects Total
Windermere-Bunglows Hadapsar School Forest Edge Katvi-Affordable Housing Total Total EPC Business Order book
Location External Order book Mumbai Mumbai Lucknow Adampur Ayyalur,Andhra Pradesh Pune Mumbai Adoni, Andhra Pradesh Chennai Chennai Lucknow Chennai
Internal Order book Pune Pune Pune Talegaon, Pune
Amt (Rs. Cr)
172 134 90 83 78 66 70 52 31 34 29 17 51 907
33 15 14 75 137 1,044
READY TO CAPITALIZE ON THE GROWTH OPPORTUNITIES
Housing for all 2022
Education & Hospitality
1. Opportunity under PMAY(U), Smart Cities, AMRUT, HIRDAY.
2. Housing shortage of 19 million in Urban Areas
3. Government investment of Rs. 2 trillion for Housing for all 2022
1. Government focus on developing Educational Institutions
and Hospitals
2. Higher Education funding agency (HEFA) outlaid funding of
Rs. 53 billion for development of IITs, IIMs, IISERs, IISc, NIT and 44 new KVs
Airports
1. Government aims to spend Rs. 250 billion for development
of 20 plus airports over the next 5 years
Growing demand for Commercial and Retail Space
1. Organised Retail to grow by 25-30% annually
2. Huge Demand for Commercial Space in Metros due to rapid
growth in service Sector
REAL-ESTATE 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
SUCCESSFULLY LAUNCHED REAL ESTATE PROJECTS
PROJECTS
Forest Edge (JV)
Windermere (JV)#
Vascon Goodlife – Value Home (Own)
Forest County
Xotech
DEV. AREA (MSFT)
0.08
0.38
0.30
0.18
0.04
LAUNCH
STATUS
Jan 2018
Fully sold
Mar 2018
50% sold
REAL ESTATE SALES (RS CR)
272
197
May 2018
60% sold
60
Dec 2018
60% sold
Oct 2018
Fully Sold
FY17
FY18
FY 19
“FOREST EDGE” – KHARADI, PUNE
VASCON GOODLIFE - KATVI, TALEGAON
RE-LAUNCH OF WINDERMERE#
XOTECH- PUNE
FOREST COUNTY - KHARADI
NEW SALE BOOKING OF ~4,20,998 SQFT FOR A TOTAL SALES VALUE OF ~RS. 272 CR IN 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
Project Name
Location
Vascon Share
Project Area
Area Sold
Sale Value Collection Sale Value Collection
Rev. Recognized
Total
Vascon Share
Type
Share
msft
msft
Rs. Cr
Rs. Cr
Rs. Cr
Rs. Cr
Rs. Cr
Forest Edge
Forest County
Pune
Pune
JV
JV
50%
0.08
0.08
50%
0.18
0.11
Windmere Residential
Pune
JDA
45%
0.38
0.19
Platinum Square
Pune
JV
70%
0.13
0.13
Vascon GoodLife
Talegaon
Own
100%
0.30
0.18
Xotech
Hinjewadi
JV
50%
0.08
0.08
54
76
223
133
64
36
27
6
164
106
6
25
27
38
100
93
64
18
24
3
74
74
6
13
-
-
95
93
-
20
Total
1.15
0.77
586
333
340
192
208
COLLECTION & AREAS SOLD DO NOT INCLUDE SALE OF 99,693 SQFT SOLD UNDER DMA PROJECTS
THANK YOU!
Mr. M. Krishnamurthi / Mr. Punit Bhayani
mk_murthi@vascon.com
punit@vascon.com
Mr. Vikash Verma / Ms. Hina Agarwal vikash.verma@stellar-ir.com hina@stellar-ir.com
Vascon Weikfield Chambers, Pune - 411014
Kanakia Wall Street, Andheri (East), Mumbai 400 093