Q3 2024 Vascon Engineers Ltd Earnings Call Transcript
Key Points
- Vascon Engineers Ltd (BOM:533156) reported a 10% year-on-year growth in consolidated total income for Q3 FY24, reaching INR282 crores.
- The company achieved a significant increase in its order book, which now stands at INR3,613 crores, the highest in its history.
- Standalone EBITDA margins were maintained at 10% in Q3 FY24, indicating stable profitability.
- The company has successfully reduced its total debt by INR47 crores over the past 30 months, improving its financial health.
- Vascon Engineers Ltd (BOM:533156) received a credit rating upgrade to CRISIL BBB+ for long-term and A2 for short-term facilities, enhancing its financial credibility.
- Despite the overall growth, the real estate revenue saw a decrease this year, which the company aims to offset through increased EPC sales.
- The net debt has risen to INR72 crores in the last nine-month period, primarily due to new joint ventures and recent EPC orders.
- The company anticipates a slow order inflow in the upcoming months due to the upcoming elections, which may impact short-term growth.
- There is a significant reliance on government projects, which constitute 77% of the order book, potentially exposing the company to policy changes and delays.
- The company is planning a QIB (Qualified Institutional Buyer) issue, which may lead to equity dilution and concerns among existing shareholders.
Ladies and gentlemen, good day, and welcome to Vascon Engineers Limited Q3 and nine-month FY24 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Dr. Santosh Sundararajan, Group CEO, Vascon Engineers Limited. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone. I welcome you all to the earnings conference call of Vascon Engineers for the third quarter and nine months ended December 31, 2023.
Today, joining me on the call is Mr. Somnath Biswas, our CFO; and our Investor Relations team, Stellar Investor Relations. I believe you would have gone through the Q3 and nine-month financial results and the results presentation uploaded on the stock exchanges and on the company's website. During the nine months of FY24, company saw uptick in the overall business. All the business segments witnessed a gradual revenue growth as compared to the same period last
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