Q1 2025 Vascon Engineers Ltd Earnings Call Transcript
Key Points
- Vascon Engineers Ltd (BOM:533156) reported a significant 35% year-on-year revenue growth in Q1 FY25, driven primarily by the EPC segment.
- The company has a robust order book of INR3,482 crores, which is 4.9 times the FY24 EPC revenue, indicating strong future growth potential.
- New orders from PWD Sindhudurg for the construction of a medical college worth INR331.38 crores have been received, showcasing continued business expansion.
- The GMP business delivered improved performance with a 42% year-on-year revenue increase and a healthy gross margin of 26%.
- The company is optimistic about its real estate segment, with plans to launch two new projects in the current fiscal year and forming relationships with AAA-rated realtors in Pune, Mumbai, and Coimbatore.
- Despite the revenue growth, the company experienced a decline in profit before tax due to timing differences in the booking of expenses and revenue in the real estate business.
- Total debt has increased to INR38 crores due to new real estate joint ventures, raising concerns about financial leverage.
- The EBITDA margin for Q1 FY25 was at 9%, which is relatively low compared to the revenue growth.
- The divestment of GMP Technical Solutions is expected to result in a net cash flow of INR100 crores to INR110 crores, which may not be sufficient for all planned growth initiatives.
- Real estate revenue recognition is expected to be low in the next two years due to the timing of project completions, impacting short-term financial performance.
Ladies and gentlemen, good day, and welcome to the Vascon Engineers Limited Q1 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Vishal Mehta. Thank you, and over to you, sir.
Thank you, [Sejal]. Good morning, everyone. I, Vishal Mehta, on behalf of Stellar Investor Relations, welcome you all to Vascon Engineers Limited Q1 FY25 earnings conference call. We shall be sharing the key operating and financial highlights for the first quarter ended June 30, 2024. We have with us today the senior management team of Vascon Engineers Limited, Dr. Santosh Sundararajan, Group CEO; and Mr. Somnath Biswas, Chief Financial Officer.
Before we begin, I would like to state that this call may contain some of the forward-looking statements, which are completely based upon the company's beliefs, opinion, and expectations as of today. The statements made in today's call are not a guarantee of future
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