Vascon Engineers Ltd

- The company currently has working capital limits of INR 300 Crores (Q1 FY24) and expects to increase this to INR 400 Crores by the end of FY24. - Debt reduction has been a focus, with gross debt down by INR 48 Crores over 24 months, though gross debt increased by INR 31 Crores this quarter due to new joint ventures and higher CC utilization. - The company has borrowed from NBFCs (e.g., Prachay Capital) for unsecured loans at higher rates (around 3%-3.5% higher than bank borrowing) to fund joint ventures where bank financing is unavailable. - On equity/fundraising, talks with merchant bankers for a strategic investor or an IPO/SME listing are ongoing to monetize certain stakes, but no firm deals have been closed as current offers were unsatisfactory. - The priority is for Vascon to liquidate its 80-85% equity stake in certain projects to realize significant equity value (upwards of INR 200-250 Crores). - No immediate fundraising finalized; efforts are continuous for suitable offers and funding arrangements.

- The company is actively seeking strategic partners or suitors for divestment but has not accepted any offers yet, aiming for an equity value upwards of INR 200-250 Crores. - Merchant bankers are exploring options like SME or IPO for monetization; however, the focus is on ensuring Vascon can liquidate its 85% stake effectively. - Plans include potentially using unsecured loans to fund joint ventures (JV) to enhance the real estate portfolio. - Vascon prefers partnering with equity investors in real estate projects rather than deploying its own equity or borrowing significantly. - The company has ongoing and upcoming real estate projects, with several launches expected, and completion targets indicating steady revenue from FY25 onward. - No large-scale land acquisitions are planned currently; any future acquisitions would be with capital partners to share risk and capital allocation.

- EPC business targets revenue growth to INR 1,000 Crores by FY25, up from current levels (Page 13, 12). - Order book over 3x FY23 revenue, providing strong visibility of growth for 2-3 years (Page 3). - Management expects 10-15% growth in EPC revenues for FY24 (Page 8). - Real estate revenues expected to be modest in FY24 as most projects are completed, but significant growth anticipated from FY25 onwards, targeting INR 150-200 Crores and steady growth from FY26 (Pages 15, 12). - Real estate gross margins projected around 25-30%, EBITDA around 15-18% (Page 13). - Management confident of consistent performance and order inflows to support growth over next 7-10 quarters (Page 17). - Increased BG and credit limits to support larger order bookings, targeting INR 1,500+ Crores soon (Page 5, 8).

- EPC business targeting revenue of INR 1,000 Crores by FY25 with 9%-10% PBT margin; gross profit at 13%-15%. - Real estate revenues expected to reach INR 150-200 Crores in FY25 with EBITDA margins around 15%-18%. - FY24 EPC growth projected at 10%-15% YoY; Q3 and Q4 expected stronger due to new projects. - From FY26 onwards, real estate revenues expected to grow steadily beyond FY25 levels. - Tax benefits to end this year; from next quarter onward, expect 25% tax on profits impacting PAT. - Improved credit rating (BBB+ long-term, A2 short-term) and increased BG limits to support order book growth and execution. - Overall, company expects continued growth in revenue, profitability, and operating efficiency driven by EPC and real estate segments.

- As of Q1 FY24, total order book stands at INR 1,980 Crores (3x FY23 revenue). - External EPC orders are around INR 1,600 Crores; internal orders approx. INR 383 Crores. - About 78% of order book is government projects, ensuring faster execution and steady cash flows. - Company aims to increase EPC order book to around INR 3,000 Crores to target INR 1,000 Crores EPC revenue in FY25. - Management expects to bag over INR 1,500 Crores of new orders in the next 2-3 months. - Current Bank Guarantee (BG) limits are around INR 300 Crores, with plans to increase to INR 400 Crores by year-end to support order book expansion. - Additional INR 40 Crores BG limit recently added, enabling capacity to bid for INR 1,000+ Crores in orders. - Internal EPC orders from real estate projects (like Santacruz, Kalyani Nagar, Baner-Pashan) expected to add approx. INR 500 Crores to order book within 8-12 months.