Sensex 27458.64 1.06 0%
Nifty 8341.4 -0.75 -0.01%
R. Vasudevan, MD, Vascon Engineers Limited, Holds a First Class Bachelor’s Degree in Civil Engineering from Pune University. He has been awarded the ‘Top Management Consortium Award of Excellence’ for the year 2005, ‘Award for Lifetime Achievement’ by the Alumni Association of College of Engineering, Pune in 2005. He has over 35 years of experience in the construction industry
Vascon Engineers Ltd is an EPC and Realty Company with a proven track record of more than 25 years and is into conceiving, developing, constructing and managing varied projects across India. The company is active in multiple sectors including residential, industrial, IT parks, malls and multiplexes, hospitality and community. It has completed 190 EPC Projects since its inception in 1986.
Replying to Yash Ved of IIFL, R. Vasudevan says, “We have ongoing projects of around 2.3mn sq. ft. and upcoming projects of area around 4mn sq. ft. which we are planning to launch in the next one year.”
What is the total area under development?
On the residential front, we have ongoing projects of around 2.3mn sq. ft. and upcoming projects of area around 4 mn sq. ft. which we are planning to launch in the next one year.
What are the plans for EPC (Engineering, Procurement, Construction) business? How much of the revenue comes from EPC currently? What is the order book size for EPC business?
For Q1 FY2012, EPC has contributed around Rs. 1.25bn, which is 68% of the total Revenue of Rs. 1.84bn.
The Company has bagged its largest third party EPC order of Rs. 11bn for the construction of Logistic Park at Bhiwandi near Mumbai with Renaissance Group. Q1 FY2012 recorded an order inflow of Rs. 14.58bn. The order book size for EPC business is Rs. 51.65bn (including own and third party projects).
What is your land bank?
Currently company has development potential of 66mn sq. ft. of which attributable to Vascon is 38mn sq. ft.
What kind of impact are you seeing in terms of rising interest rates?
Our current cost of debt is 13.31%, which may go up by around 100 bps going ahead depending on the interest rate moving up further.
What is the revenue mix?
68% of our revenue comes from EPC business, 13% from Real estate business and remaining of our revenue comes from Hotel, GMP and other revenue.
| Total Revenue
|| 100% |
| EPC Revenue
|| 68% |
| Real Estate Revenue
|| 13% |
| Hotel Revenue
|| 1% |
|| 15% |
| Other Revenue
|| 3% |
Brief us about your financials?
The company has recorded revenue of Rs. 1.84bn for Q1 FY2012, EBITDA of Rs. 220mn and Profit after Tax was Rs. 23mn.
The total order book as on 30th June, 2011 is Rs. 51.65bn and order backlog of Rs. 38.47bn.
Your current debt and debt to equity ratio?
As of 30th June 2011, the total debt stood at Rs2.81bn. The debt to equity ratio is 0.39 times.
Brief us about your current and upcoming projects in commercial, township, retail, hospitality?
Currently, the company is working on the following Residential Projects:
| Project Name
|| Area (mn. sq. ft) |
| Willows Phase I
|| 0.20 |
| Willows Phase II
|| 0.16 |
| Vista - Phase I
|| 0.18 |
| Vista - Phase II
|| 0.13 |
| Forest County (11 bld.)
|| 0.84 |
| Tulips – Phase I
|| 0.07 |
| Tulips - Phase II
|| 0.20 |
| Windmere Duplex
|| 0.17 |
| Windmere Apartments
|| 0.22 |
|| 0.12 |
Commercial – Projects (Contractual)
Ruby Mills – Mumbai
V-Tech IT / Commercial Park – Nashik
Neelkanth Palacia – Mumbai
Legislative Assembly Complex – Chennai
Theme Park for Adlabs – Khalapur, Mumbai
Retail – 3 Projects
Mariplex – Kalyani Nagar, Pune
Nucleus Mall – Camp, Pune
Marisoft Lifestyle – Pune
Hospitality – 4 Projects
Caspia Hotels – Coimbatore (1,34,000 sq. ft.)
Park Hotel Group – Pune (2,30,000 sq. ft.)
Novotel Hotel – Pune (2,00,000 sq.ft.)
We are coming up with projects in Chennai, Neelambur, Hyderabad, Madhurai, Pune and Nashik.
| Project Name
|| Project Area (sq. ft.) |
| Chennai Project
|| 1,573,570 |
| Neelambur Project
|| 800,000 |
| Panache Heights
|| 584,850 |
| Madhurai Project
|| 500,000 |
| Nature Spring
|| 240,000 |
| Vista Phase III
|| 100,000 |
|| 90,000 |
Your promoter holding?
Current promoter and promoter bodies corporate holding is around 38.66%.
India Infoline Research Team / 15:28, Mar 13, 2015
Markets are now reinforcing the perception of an early interest rate hike by US Federal Reserve, with consensus calling for the hike taking place in June, when compared with the prior expectations of a hike in September.