Vascon Engineers LimitedVascon Engineers Limited
Analyst Meet PresentationAnalyst Meet PresentationAnalyst Meet PresentationAnalyst Meet PresentationQ2 FY11Q2 FY11
Agenda
1. Group Overview
3. Financials highlights
2. Key highlights for the quarter
3. Financials highlights
4. Project highlights
6. Annexure2
5. Acquisition
Company Overview
� Commenced operation in 1986 and present in the
� Unique Business Positioning
� EPC� Real Estate� Strategic Investments – Hospitality Sector
Real Estate Strategic Investments EPC
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Real EstateKey to scalability and value
unlocking, building on the
strong EPC edifice to give it
the cutting edge
Strategic Investments
Driven by opportunities
arising from the growth
prospects of the company’s
EPC and Real Estate
businesses
EPCReputation of a Company
which provides the highest
quality for the right value and
in a timely manner.
Key Differentiators
Broad based skill sets of Qualified & Experienced management team
High standards of corporate Governance and Transparency
Strong and diversified Revenue model
Timely execution of projects / Efficiency in delivery schedules
Competitive edge on account of EPC expertise
Technological innovations
Owned equipment base – leads to better utilization rates and reduced time for deploying resources
Transparency in accounting methods adopted and business dealings
Aspiration to make a significant impact across business segments – driving growth
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Key highlights for the quarter
1. Signed agreement to develop township at Oragadam, Chennai
Company plans to develop a 105-acre township, predominantly residential, at
Oragadam on the outskirts of Chennai in four phases with total saleable area of
over 10 million sq. ft.
The project will be developed in a joint venture with Balakh realtors and the
association will be on a revenue-sharing basis.
2. Bagged new order worth Rs. 1,332 million
3. Launched project Tulip - Phase II in Coimbatore
2. Bagged new order worth Rs. 1,332 million
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Company has bagged new orders worth Rs. 1,332 million during the last
quarter. Total EPC order book of the company stands Rs.38.5 bn. and backlog of
Rs. 26.6 bn.
Company has Launched Tulip – Phase II, a residential project in Coimbatore with
total saleable area of ~ 0.2 million sq. ft.
Key financialsKey financials
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Particulars Q2 FY11 Q2 FY10 H1 FY11 H1 FY10
Growth
H1 FY11 Vs. H1
FY10
Total Income 2253.6 2199.2 4316.9 3625.0 19.09%
Total Income - EPC 1798.8 1755.2 3765.2 2896.7 29.9%
Total Income – Real Estate 135.5 348.8 206.7 583.9
EBIDTA 301.5 287.9 568.3 509.5 11.5%
Rs. in million
Key financials – Q2 & H1 FY11
P & L (consolidated)
EBIDTA 301.5 287.9 568.3 509.5 11.5%
Profit Before Tax 218.4 207.2 424.9 349.6 21.5%
Profit After Tax 177.7 132.2 316.2 237.3 33.2%
EPS (Rs.) - diluted 1.93 1.72 3.57 3.10
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EBITDA Margin 13.4 % 13.1 % 13.2 % 14.1 %
PAT Margin 7.9 % 6.0 % 7.3 % 6.6 %
Particulars As on 30.09.10 As on 30.09.09
ROCE – annualised (%) 10.82 13.88
ROE – annualised (%) 12.22 15.04
(consolidated)
Key Ratios
Rs. in million
Total Debt (Rs. million) 2,567. 8 2,129.5
Net worth (Rs. million) 6,953.3 4,648.2
Debt: Equity ratio 0.37 0.46
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EPCEPC
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Business Model – EPC Business
Stability DriverENGINEERING, PROCUREMENT & CONSTRUCTION
� Constructing factories hospitals, hospitality properties, office andresidential complexes, shopping malls, multiplexes, IT parks andother buildings
� Strong Track Record & Reputation� High integrityHigh integrity� Highest Quality for the Right Value� Timely Completion of Projects
� Competitive Bidding to win Contracts� Recent fund raising exercise to boost prospects
� Repeat Orders from Joint Venture Partners across regions
� Forayed into Government contracts.10
Punjab
EPC (Rs mn)
Order Book: 300
Order Backlog: 230
Himachal Pradesh
EPC (Rs mn)
Order Book: 175
Order Backlog: 85Haryana
EPC (Rs mn)
Order Book: 1,264
Order Backlog: 640
Gujarat
EPC (Rs mn)
Order Book: 3180
Order Backlog: 3180
Delhi
EPC (Rs mn)
Order Book: 2,481
Order Backlog: 734
Pan-India Presence
As on 30.09.10
Maharashtra
EPC (Rs mn)
Order Book: 24,975
Order Backlog: 16,667
Karnataka
EPC (Rs mn)
Order Book: 61
Order Backlog: 0
Goa
EPC (Rs mn)
Order Book: 455
Order Backlog: 215
Tamil Nadu
EPC (Rs mn)
Order Book: 3,939
Order Backlog: 3,293
Order Backlog: 3180
Andhra Pradesh
EPC (Rs mn)
Order Book: 1,383
Order Backlog: 1,265
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Contracting Entity LocationContract
Value
Delhi International Airport –car park Delhi 2,481
TN Assembly Complex (Block-B) Tamilnadu 2,109
Ruby Mills, Dadar Maharashtra 2,074
HDIL Maharashtra 1,791
Neelkanth Palacia,Mall & Business centre Maharashtra 1,333
KONDHWA Realty Maharashtra 999
EPC – Key Projects
Rs. in million
KONDHWA Realty Maharashtra 999
Savitribai Phule Shikshan Prasarak Mandal Maharashtra 820
Neelkanth IT Park Maharashtra 759
North Town, Chennai Tamilnadu 748
BPTP - IT park Haryana 739
"Kshitij" Parmanandwadi Maharashtra 564
Villa Viviana Tamilnadu 562
Sinhgad Technical Education Society- Addition Maharashtra 536
Total Contract value of Rs. 38.2 bn. and Backlog of Rs. 26.3 bn. 12
EPC – New orders bagged during the quarter
Projects Value (Rs. Million)
Park Mansion-BPTP 328
Forest County 300
Park Serence –BPTP 197
Sinhgad School - Pune 138
Caspia Hotel 121
Tulips –Coimbatore 100
Others 148
Total 1,332
New order bagged during H1 FY11 ~ 4.32 bn
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Real EstateReal Estate
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Business Model – Real Estate
Scalability Driver
� Based on strong foundation of EPC experience ranks among the top ten buildersin India (source: Construction World publication in June 2007 )
� Expected to provide high scalability
� Cost efficient development model – Joint Development Agreements (JDAs) and
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� Cost efficient development model – Joint Development Agreements (JDAs) andJoint Ventures lowers working capital requirements
� De-Risked Business Model – by investing in properties only after gainingsignificant hands on experience from JVs and JDAs.
� Historic Land Bank purchased at low prices giving it significant scope for capitalappreciation.
� Conservative Accounting Policy
Ahmedabad
Dev. potential 2.7
Nashik
Dev. potential 1.7
Chandigarh
Dev. potential 0.3
million sq. ft.
Land bank – National Presence
Pune
Dev. potential 25.6
Thane
Dev. potential 19.0
Madhurai
Dev. potential 1.6
Aurangabad
Dev. potential 1.4
Goa
Dev. potential 0.6
Coimbatore
Dev. potential 3.3
Hyderabad
Dev. potential 0.6
Belgaum
Dev. potential 0.2
Total development potential ~ 68.6 million sq. ft. 16
Chennai
Dev. potential 11.6
Projects progress status
On going project updatesAs on 30.09.10
Project
Vista
Phase I
Willows
phase I
Forest County
phase I
Willows
Phase II
Vista
phase II
Tulip
phase I
Tulip
phase II Windermere
Type Residential Residential Residential Residential Residential Residential Residential Mix
Location Nashik Pune Pune Pune Nashik Coimbatore Coimbatore Pune
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Total saleable area (sq. ft.) 176,260 197,262 688,370 159,910 128,000 74,000 197,500 396,800
Total area sold (sq. ft) till sep 10 160873 143015 547,486 60,918 66,285 74,000 38,795 55482
% Area Sold 91% 73% 80% 38% 52% 100% 20% 14%
Total no. of apartments 126 60 386 126 112 48 112
Apartments - 62
Duplex - 21
Acquisition of GMP Technical Solutions Pvt. Ltd.
� Company has acquired 90% of GMP Technical Solutions Pvt. Ltd with the cash
outflow of Rs. 626 million
GMP has 3 divisions:
� Manufacturing: Clean rooms, office partitions, door sets, storage racks
� BMS: Integrated business management services; US FDA compliant for
pharma industry
� QA Technical Services: Validation and certification of weights and
measures
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� Acquisition to yield economies of scale. Synergy to strengthen capability to
offer turnkey solutions
The Strategic Roadmap
Expanding Geographical
presence
Expanding Geographical
presence
Expanding Industry Portfolio
Expanding Industry Portfolio
Pan Indian opportunities in
terms of strategic investments in
hospitality
Pan Indian opportunities in
terms of strategic investments in
hospitality
Fortify an Integrated
& De-Risked Model
Fortify an Integrated
& De-Risked Model
Focus on Technology
Focus on Technology
Gaining significant experience
through JDAs and JVs before entering
into land bank investments
Gaining significant experience
through JDAs and JVs before entering
into land bank investments
Thank YouThank You
For further information, please contact :
M. Krishnamurthi/ Vivek Sakharkar
Vascon Engineers Ltd.
Contact : +91 20 3056 2300
Email: [email protected]
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AnnexureAnnexure
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Financial Statement B/S
Particulars 30-Sep-10 30-Sep-09
Liabilities
Capital 900.2 792.2
Reserves & Surplus 6,053.2 3,856.1
Total Loans 2,567.8 2,129.5
Minority Interest 69.2 74.9
Total Liabilities 9,594.9 6,854.1
Consolidated numbers
Rs. in million
Total Liabilities 9,594.9 6,854.1
Assets
Fixed Assets 2,381.9 1,028.6
Investment 832.8 836.9
Deferred Tax Asset 19.6 9.5
Net Current Assets 6,360.6 4,979.1
Total Assets 9594.9 6854.1
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 performancethat 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
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.
•No offering of the Company’s securities will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”).
Accordingly, unless an exemption from registration under the Securities Act is available, the Company’s securities may not be offered, sold,
resold, delivered or distributed, directly or indirectly, into the United States or to, or for the account or benefit of, any U.S. Person (as defined in
regulation S under the Securities Act).
•The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation
comes should inform themselves about and observe any such restrictions.
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