In This Article:
-
Revenue Growth: 22% year-on-year growth in H1 FY25.
-
Order Backlog: INR3,267 crore, four times the FY25 EPC revenue.
-
New Orders: INR332 crore from PWD and INR57 crore from Mumbai Metro Rail Corporation.
-
Sales Booking: 22,152 square feet generating INR14 crore in sales value.
-
Total Income (Standalone Q2 FY25): INR202 crore, 15% year-on-year growth.
-
EBITDA (Standalone Q2 FY25): INR17 crore, with an EBITDA margin of 8%.
-
Net Profit (Standalone Q2 FY25): INR8 crore.
-
Total Income (Consolidated Q2 FY25): INR202 crore, 25% year-on-year growth.
-
EBITDA (Consolidated Q2 FY25): INR17 crore, with an EBITDA margin of 8%.
-
Net Profit (Consolidated Q2 FY25): INR9 crore.
-
Credit Rating Upgrade: Crisil A minus stable for long-term facilities and Crisil A two plus stable for short-term facilities.
-
Divestment Proceeds: INR157 crore from GMP Technical Solutions, with expected net cash flow of INR100-110 crore post-tax and expenses.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Vascon Engineers Ltd (BOM:533156) reported a significant 22% year-on-year revenue growth in H1 FY25, driven primarily by the EPC segment.
-
The company has a robust order backlog of INR3,267 crore, which is four times the FY25 EPC revenue, indicating a strong foundation for future growth.
-
Approximately 82% of the order book comes from government projects, providing reliable cash flow and ensuring swift execution timelines.
-
The company successfully divested its 100% equity stake in GMP Technical Solutions, receiving INR157 crore, which will be used to support growth in real estate and EPC divisions.
-
Crisil upgraded the company's credit rating to Crisil A minus stable for long-term facilities and Crisil A two plus stable for short-term facilities, reflecting an improved operational and financial risk profile.
Negative Points
-
Despite revenue growth, the company experienced a decline in profit due to timing differences in the recognition of expenses and revenue in the real estate segment.
-
The company has only achieved INR400 crore of its INR1,500 crore order booking target for the year, partly due to impending elections affecting order bookings.
-
The real estate segment's contribution to the topline was almost zero in the quarter, impacting overall profitability.
-
The company's cost of borrowing remains high, ranging from 12.5% to 15%, with no immediate plans to significantly reduce it.
-
The company faces challenges in improving EPC margins from 8% to 10%, requiring strategic initiatives and increased scale to achieve this target.