Q2 2025 Vascon Engineers Ltd Earnings Call Transcript
Key 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.
- 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.
Ladies and gentlemen, good day. And welcome to Vascon Engineers Limited Q2 and H1 FY 25 earnings conference call. As a reminder, all participant lines will win the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone phone. 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 Shlok.
Good morning everyone. I'm Vishal Mehta, on behalf of Stellar Investor relations. Welcome you all to Vascon Engineers Limited Q2 and H1 FY25 earnings conference call. We shall be sharing the key financial alerts for the second quarter and half year ended, September 30 2024. We have with us, the senior management team of engineers Limited Dr Santosh Sundararajan, Group CEO and Mr Somnath Biswas, Chief Financial Officer.
Before we begin I would like to state that this
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
