Vascon Engineers Ltd

- Vascon Engineers plans to increase working capital limits by Rs 60 Crores by the end of FY '24, mainly through non-fund-based facilities (Page 11). - The company intends to take construction finance or nominal debt on a case-to-case project basis in its real estate segment and aims to quickly repay any construction finance borrowed (Page 11, 17). - For the Powai land development project, Vascon has brought in an equity partner, reducing its stake to 35%, to share the high costs of launch without heavy borrowing or cash flow investment (Page 14). - No plans for long-term or medium-term borrowings in real estate; focus is on equity partners and short-term construction finance (Page 14). - The company has been actively repaying high-cost debt and reduced gross debt from Rs 214 Crores in March 2021 to Rs 135 Crores as of March 2023; net debt reduced to Rs 12 Crores (Page 4). - No specific mention of upcoming equity fundraising beyond the existing partnerships.

- Vascon is focusing on joint ventures (JV) and small real estate projects rather than land buying or large-scale land banking. - For real estate projects, they plan to raise construction finance or nominal debt on a case-to-case basis, avoiding heavy long-term or medium-term borrowings. - An equity partner has been brought into the Powai land project to fund the premium FSI, TDR, and launch costs, leading to a dilution of Vascon's stake to 35%. - The company expects to launch 3-4 real estate projects in FY '24. - Capex or capital investment is primarily project-driven, with emphasis on efficient capital deployment rather than large upfront investments. - No explicit new diversification plans or major capex outside core EPC and real estate verticals mentioned.

- EPC business expected to grow 15%-20% year-on-year in both top line and bottom line for the next 2-3 years. - GMP (BMS segment) targets 15%-20% growth in topline with improved EBITDA margins by 1-2 percentage points. - Real estate segment forecasted for robust growth over the next 3-5 years with a focus on launching multiple projects, though year-on-year revenue recognition may fluctuate due to accounting policies. - Real estate sales velocity expected to be strong with at least 50% project sales upon launch, aiming for no inventory of completed projects. - Concentration on Pune, Mumbai, and Coimbatore markets in real estate, focusing on niche redevelopment and joint ventures for mid-sized projects. - Overall, the company expects real estate to potentially grow faster than EPC on average over 3-4 year periods. - Order book with 3x FY '23 revenue provides strong visibility for continued growth.

- EPC segment is expected to grow 15%-20% YoY in topline in FY24, with bottom line improving ~1-2 percentage points at EBITDA level. (Page 16) - Real estate segment will see overall growth over next 4-5 years, though revenue recognition is staggered due to completion timings; growth expected to be much higher on average over 3-4 years than current levels. (Pages 15-16) - Real estate gross profit margins expected at 25%-30%, higher than EPC’s ~15%-16%. (Page 16) - GMP (Build-Operate-Maintain) business targets similar 15%-20% YoY revenue growth with stable/improving EBITDA margins. (Pages 10,16) - The company aims to improve EPC PBT from current 8% to a target of 10%. (Page 15) - Consolidated growth trajectory is strong with order book over 3x FY23 revenue, supporting sustained growth. (Page 3) - Overall profitability improved to record Rs 100 Crores PAT in FY23; cash conversion cycle and net debt significantly improved. (Page 2)

- EPC order book started FY '23 at Rs 1,832 Crores. - Won approx. Rs 600 Crores orders in last 3 months of FY '23. - Closed FY '23 with total order book of Rs 2,172 Crores (~3x FY '23 EPC revenue). - External EPC orders: Rs 1,739 Crores; Internal orders: Rs 388 Crores. - About 78% of order book is government projects. - GMP subsidiary currently holds order book over Rs 200 Crores. - GMP expecting 15%-20% yearly growth in orders. - Vascon targets to grow EPC order intake, increasing private sector share in FY '24. - Focus on government and AAA-rated private sector projects, including railway buildings.