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Vascon Engineers Limited
Analyst Meet PresentationQ1 FY11
Agenda
1. Economic overview
2. Key financials
3. Project details – EPC
4. Project details – Real estate
5. Acquisition
6. Business positioning & Way forward
2
5971
85102
122
145
FY 10E FY 11E FY 12E FY 13E FY14E FY 15E
Indian economy continues to be on strong footing
Strong GDP growth to continue
3
# RBI est. for FY11
9.20%
6.70%7.40%
8.50%
FY 08 FY 09 FY 10 FY 11 E
#
1.721.54
2.04
1.72
1.21
2.18 2.21
Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10
FDI inflow getting stronger… …with significant investment in construction, housing and real estate sector
Service Sector17% Construction
11%
Housing/Real Estate
11%
Others61%
Data for FY10Total inflow of Rs. 25.9 bn.
Rs. bn.
Source: Citi research/UBS
GCF in Infrastructure
USD bn.
Huge spending ahead in infrastructure
UBS Estimates
Boost to infrastructure and real estate
growth
Govt. focus on infrastructure
development
Growth in IT/ ITES services
Strong FDI inflow in real estate,
construction segment
Easy availability of housing loan and
affordable interest rates
Infrastructure and real estate to show strong growth going ahead.
Factors contributing to infrastructure and real estate growth
4
Key financials
2009-10
VASCON
Particulars Q1 FY11 Q1 FY10 % Growth
Total Income 2051.1 1407.0 45.8%
Gross Profit 449.1 288.04 55.9%
EBIDTA 266.8 221.5 20.5%
Profit Before Tax 206.5 142.4 45.8%
Profit After Tax 138.4 105.2 31.6%
EPS (Rs.) - diluted 1.54 1.38 11.6%
Rs. in million
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Key financials – Q1 FY11
P & L (consolidated)
Particulars As on 30.06.10 As on 30.06.09
ROCE – annualised (%) 11.19 12.35
ROE – annualised (%) 12.23 14.19
Total Debt (Rs. million) 2,079.4 2,475.2
Net worth (Rs. million) 6,752.3 4,014.7
Debt: Equity ratio 0.31 0.62
Key Ratios (consolidated)
Key financials – Q1 FY11
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EPC Business
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Tamil Nadu State Assembly Complex (Block B), Chennai
Ruby mill, Dadar, Mumbai
HDIL commercial complex, Vidyavihar, Mumbai
Neelkanth Palacia, mall & business centre, Mumbai
Kondhwa Reality, Pune
Savitribai Phule Shikshan Prasarak Mandal, Pandharpur
North Town, Chennai
Sinhagad Technical Education Society, Ambegaon, Pune
Order book ~ Rs. 44,300 millionOrder backlog ~ Rs. 32,300 million
EPC business – ongoing projects
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Significant ongoing projects
Factory – Legrand, Nashik
Pharma Plant - Gopaldas Visram, Mumbai
Bharti Realty Ltd, Ludhiana (Commercial )
North Town, Chennai (Residential)
Aamby Vally (villas), Lonavala (Residential)
TATA Housing, Lonavala (Residential)
Kondhwa Realty, Pune (Residential)
SMCC-Yamazaki Mazak, Pune (Commercial)
New projects bagged during Q1 FY11
Order value of ~ Rs. 2,990 million
EPC business – new projects
SMCC - Sumitomo Mitsui Construction Company
EPC business – completed projects
Project completed during Q1 FY11
Cipla - Indore SEZ
Contract value of ~ INR 1,447 mn.
Construction tenure ~ 18 months
Total constructed area ~ 1.55 mn. sq ft.
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Contract value of ~ INR 2,480 mn.
Construction tenure ~ 15 months
Total constructed area ~ 1.2 mn. sq ft
Multi Level Car Park - Delhi Airport
Real estate Business
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Pune
Dev. potential 25.6
Thane
Dev. potential 19.0
Ahmedabad
Dev. potential 2.7
Nashik
Dev. potential 1.7
Madhurai
Dev. potential 1.6
Aurangabad
Dev. potential 1.4
Goa
Dev. potential 0.6
Chandigarh
Dev. potential 0.3
Coimbatore
Dev. potential 3.3
Hyderabad
Dev. potential 0.6
Belgaum
Dev. potential 0.2
Total development potential ~ 56.8 million sq. ft.
Real estate - land bank
million sq. ft.
13
Projects launched during the quarter
14
Forest County –phase I
Project
Forest County –phase I
Type Residential
Location Pune
Total saleable area (sq. ft.) 688,355
Total area sold(sq. ft.) 575,680
No. of buildings 9
Total no. of apartments 386
15
Willows – phase II
ProjectWillows -phase II
Type Residential
Location Pune
Total saleable area (sq. ft.) 290,930
Total area sold(sq. ft.) 49,960
No. of buildings4
(Bld. D,E,F,G)Total no. of apartments 126
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Note : Bookings for bld. F & G is yet to be started.
Vista - phase II
Project Vista- phase II
Type Residential
Location Nashik
Total saleable area (sq. ft.) 112,000
Total area sold(sq. ft.) 43,700
No. of buildings4
(Bld. F,G,H,I)
Total no. of apartments 112
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Note : Bookings for bld. H & F is yet to be started.
Tulip-phase I
Project Tulip -phase I
Type Residential
Location Coimbatore
Total saleable area (sq. ft.) 73,940
Total area sold(sq. ft.) 73,940
No. of buildings2
(Bld. A,B)
Total no. of apartments 48
18
Hotel projects
Project Four Points (Duet) Novotel
Location Pune Pune
No. of keys 232 320
Four Points Duet Hotel
19
Projects completed during the quarter
20
Real estate business – completed projects
Project completed during Q1 FY11
ProjectWillows -
phase I
Type Residential
Location Pune
Total saleable area (sq. ft.) 168,675
Total Area Sold(sq. ft.) 152,265
No. of buildings 3
Total no. of apartments 60
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Forthcoming projects
22
Nature Spring, Talegoan, Pune(Approx 57 acres mix development project).
Xotech, Hinjewadi, Pune (2& 3 bhk)
Rosebay, Hadapsar, Pune(2 & 3 bhk).
Tulips - Ph 2, Coimbatore (2, 3, 3.5, 4 bhk)
Projects to be launched in Q2 FY11
Real estate business – forthcoming projects
23
Windermere , Koregaon Park, Pune(5 acres, approx. 325,000 sq. ft. high-end residential project & 100,000 sq. ft. high-end commercial project)
Acquisition
24
25
Acquisition
90% of GMP Technical Solutions Pvt. Ltd at a cost of Rs 626 million Turnover of GMP in FY 2010 was Rs 1267 million and PAT Rs 217 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
Acquisition to yield economies of scale. Synergy to strengthen capability to offer turnkey solutions
Business positioning and Way forward
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Synergizing EPC and Real estate business
1. Risk diversification2. Better quality and faster execution3. Capability of turnkey real estate
projects4. Faster reach to and understanding
of new locations5. EPC facilitates market intelligence
gathering for real estate projects6. Revenue-sharing model that cuts
risks
Benefits
27
Employees : Key strength to growth
TogetherEveryoneAchievesMore
Total Income (Rs. million)
No. of employees
Total Income vis-a-vis Manpower
0
200
400
600
800
1000
0
2000
4000
6000
8000
10000
FY06 FY07 FY08 FY09 FY10
Total Income No. of employees
Suzlon One Earth
Global headquarters executed by Vascon on its plot on a built-to-suit basis for Suzlon
Rated Platinum by LEED, scoring 57 out of 58 points Rated 5-star by GRIHA Awarded as Best Corporate Building by AESA Makes optimum use of wind, rain and solar energy Acclaimed as “greenest corporate headquarters on earth” Construction completed on schedule in spite of
overwhelming odds
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Awards during the quarter
LEED—Leadership in Energy and Environment Design GRIHA—Green Rating for Inhabited Habitat Assessment AESA—Architects, Engineers and Surveyors’ Association
Way forward
Leading Player in EPC, Real estate, Hospitality and Infrastructure
Started as a EPC company
Ventured into Real estate
Foray into Hospitality
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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 orsubscribe 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 aboutthe Company.
•This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Companymakes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, thetruth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive andmay not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, thisPresentation is expressly excluded.
•Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospectsthat are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performanceand are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertaintiesinclude, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performanceof the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levelsof growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’smarket preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance orachievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes noobligation to update any forward-looking information contained in this Presentation. Any forward looking statements and projections made bythird parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statementsand 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 beoffered, 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 presentationcomes should inform themselves about and observe any such restrictions.
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