Vascon Engineers Limited has informed the Exchange regarding Investor Presentation
Date: October 24, 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 | October 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.
2
HIGHEST-EVER ORDER-INTAKE IN YTD FY20
EPC Business- External Order-Intake
1,407
Order Intake
(In Rs. Cr.)
Bangalore Metro Rail Corporation, Karnataka
Public Works Department, Raipur, Chhattisgarh
Maharashtra State Police Housing & Welfare Corporation Ltd.
Pune Municipal Commission
Tycoon Avanti Projects
467
225
FY18
FY19
YTDFY20
Total
(In Rs. Cr)
160
506
465
104
172
1,407
3
KEY HIGHLIGHTS
EPC Business
Real Estate Business
Rs 2,042 Cr Total Order Book
Rs 1,917 Cr External Orders
Rs 125 Cr Internal Orders
Witnessing decent traction in sales of Good Life & Windermere projects
Order Intake of Rs 1,407 Cr in YTD FY20
New Sales booking of 64,383 sqft for a total sales value of Rs 57 Cr in H1FY20
4
P&L HIGHLIGHTS- Q2 & H1 FY20
Particulars (Rs. Crs)
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
76.96
2.23
79.19
53.89
8.4
5.05
11.85
15%
2.18
7.16
2.51
2.51
-0.06
2.45
-
69.65
11.98
81.63
55.38
13.02
8.19
5.04
6%
2.04
5.12
-2.12
-0.99
-1.13
-0.55
-1.68
Standalone
Consolidated
Q2 FY20
Q2 FY19
H1 FY20
H1 FY19
Q2 FY20
Q2 FY19
H1 FY20
H1 FY19
172.59
12.14
184.73
163.53
121.34
117.27
16.1
2.69
179.63
124.03
13.13
130.4
86.13
20.88
13.58
9.81
8%
3.36
5.89
0.56
-0.99
1.55
-0.55
1
252.02
13.49
265.51
254.24
19.84
274.08
177.06
190.84
35.06
21.53
31.86
12%
7.31
14.23
10.32
10.32
0.03
10.35
-
39.44
26.69
17.11
6%
6.51
11.95
-1.35
-0.99
-0.36
-0.21
-0.57
5
130.23
125.05
19.14
10.92
24.44
13%
4.22
12.38
7.84
7.84
0.03
7.87
-
24.88
16.16
13.54
8%
3.88
10.29
-0.63
-0.99
0.36
-0.21
0.15
80.02
16.85
10.61
16.55
13%
3.77
8.12
4.66
4.66
-0.06
4.60
-
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#
69.2
53.98
15.22
22%
4.63
6.61
6.58
6.66
10%
0.94
5.72
8%
EPC##
115.13
86.64
28.49
25%
7.35
12.53
5.36
17.95
16%
3.37
14.58
13%
GMP
78.88
46.79
32.09
41%
2.27
15.92
10.87
7.57
10%
3
4.57
6%
-
-
-
Inventorised
0.33
Total
263.21
187.74
75.47
29%
14.25
35.06
22.81
31.85
12%
7.31
24.54
9%
14.23
10.32
-
10.32
# 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
6
BALANCE SHEET
Rs. Crs
Sep– 19
Mar– 19
Rs. Crs
Sep– 19
Mar– 19
Non-current assets
Fixed assets
Financial Assets
350.64
113.64
190.85
345.39
114.26
187.19
Shareholder’s Fund
Share capital
Other Equity
Non Controlling Interest
Other Non Current assets, Income Tax & Deferred Tax
46.15
43.94
Non-current liabilities
Current assets
Inventories
Investments
976.8
472.92
14.39
985.34
500.23
4.33
Trade receivables
183.23
201.67
Cash and bank balances
50.72
72.12
Loans & Other Financial assets
230.89
188.96
Other current assets
24.65
18.03
Long term borrowings
Other Financial liabilities
Current liabilities
Short term borrowings
Trade Payables
Other Financial liabilities
711.39
178.14
523.64
9.61
133.09
113.8
19.29
482.96
108.03
198.94
52.32
699.59
178.14
512.1
9.35
159.3
140.22
19.08
471.84
92.76
201.67
31.32
Total Assets
1,327.44
1,330.73
Total Liabilities
1,327.44
1,330.73
7
Other current liabilities & Provisions
123.67
146.09
VASCON – AT PRESENT
ENGINEERING PROCUREMENT & CONSTRUCTION
One of the leading EPC Company in India
REAL ESTATE DEVELOPMENT
Focus on Affordable Housing
8
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
10
MARQUEE CLIENTS
MAINTAINING CONSISTENT QUALITY STANDARDS ENSURING REPEAT ORDERS
11
ORDER BOOK BUILD-UP
RECEIVED ORDER WORTH RS. 1,407 CRORE SINCE THE BEGINNING OF THE CURRENT FINANCIAL YEAR
(In Rs. Cr)
2,042
1,066
1044
515
FY17
FY18
FY19
Current Order Book
EXECUTION OF NEW ORDERS TO IMPROVE REVENUE & CAPACITY UTILISATION… LEADING TO BETTER OPERATING MARGINS
12
EXISTING ORDER BOOK
Project
PWD, Raipur
External Order book
Maharashtra State Police Housing
Tycoon
Bangalore Metro Rail Corporation
Adhiraj
PMC-Affordable Housing
Kailash Enclave
Adampur Airport
Other Projects
Total
Internal Order book
Windermere-Bunglows
Forest Edge
Katvi-Affordable Housing
Total
Total EPC Business Order book
Location
Amt (Rs. Cr)
Raipur
Mumbai
Mumbai
Bangalore
Mumbai
Pune
Lucknow
Adampur
Pune
Pune
Talegaon, Pune
505
465
168
160
117
103
79
77
243
1,917
29
25
71
125
2,042
13
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
14
GOVERNMENT INITIATIVES IN REAL ESTATE SECTOR
Pradhan Mantri Awas Yojana – Urban - Sanctioned Rs. 4.83 lakh crore for the Construction of over 81 lakh houses, construction started of about 47 lakh houses
Pradhan Mantri Awas Yojana – Gramin aims to achieve "Housing for All" by 2022- In Second Phase i.e. 2019-20 to 2021-22, to provide 1.95 crore houses with basic amenities
Investment of Rs. 100 lakh crore in infrastructure intended over the next five years
To use Joint development and concession mechanisms for public infrastructure and affordable housing on land parcels held by the Central Government and CPSEs
Government launched The Liquidity Infusion Facility (LIFT) scheme to infuse Rs. 10,000 crore in housing finance sector which will be valid upto 30th June 2020. HFCs registered with NHBs with minimum internal rating of ‘B’ will be eligible to withdraw maximum amount of Rs. 500 crore under this scheme
15
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
17
SUCCESSFULLY LAUNCHED REAL ESTATE PROJECTS
Projects
Forest Edge (JV) A Forest Edge (JV) B Windermere (JV)#
Vascon Goodlife – Value Home (Own)
Forest County Xotech C
#Relaunch
Dev. Area (msft)
0.08 0.08 0.38
0.3
0.18 0.04
Launch
Status
Jan-18 Sep-19 Mar-18
Fully sold 12% sold 55% sold
May-18
60% sold
Dec-18 Oct-18
83% sold Fully Sold
REAL ESTATE SALES (RS CR)
272
197
57
FY18
FY19
H1FY20
“FOREST EDGE” – KHARADI, PUNE
VASCON GOODLIFE - KATVI, TALEGAON
RE-LAUNCH OF WINDERMERE#
XOTECH- PUNE
FOREST COUNTY - KHARADI
NEW SALE BOOKING OF ~64,383 SQFT FOR A TOTAL SALES VALUE OF ~RS. 57 CR IN H1FY20 AGAINST SALE
BOOKING OF 4,20,998 SQFT FOR A TOTAL SALES VALUE OF ~RS. 272 CR IN FY19
18
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 (A&B)
Forest County
Pune
Pune
JV
JV
50%
0.16
0.09
60
50%
0.18
0.15
105
Windmere Residential
Pune
JDA
45%
0.38
0.21
244
Platinum Square (I&II)
Pune
JV
70%
0.13
0.13
133
Vascon GoodLife
Talegaon
Own
100%
0.46
0.18
Xotech (I&II)
Hinjewadi
JV
50%
0.08
0.08
64
36
32
9
192
115
17
30
30
53
110
93
64
18
16
5
86
81
17
15
-
-
109
93
-
18
Total
1.39
0.84
642
395
367
219
220
19
REAL ESTATE PROJECTS PIPELINE
Sr. No.
Projects
Type
Segment
Saleable Area
Expected Sales Value
1
2
3
4
5
6
7
Coimbatore
Madurai
Bavdhan - Comm
Willows - Comm
4 Acre HDH
Kalyani Nagar - Comm
Kalyani Nagar
Total
JDA
JDA
JDA
JV
JV
JDA
JDA
Residential
Residential
Commercial
Commercial
Residential
Commercial
Residential
msft
(Rs. in Cr)
0.33
0.49
0.23
0.23
0.35
0.30
0.50
2.41
179
220
158
191
245
330
550
1,873
THANK YOU!
Mr. Punit Bhayani punit@vascon.com
Mr. Gauranh Vasani/ Ms. Hina Agarwal vgaurang@stellar-ir.com hina@stellar-ir.com
Vascon Weikfield Chambers, Pune - 411014
Kanakia Wall Street, Andheri (East), Mumbai 400 093