Q3 2025 Vascon Engineers Ltd Earnings Call Transcript
Key Points
- Vascon Engineers Ltd (BOM:533156) reported a strong revenue growth of 48% year-on-year in Q3 FY25 and 37% in the nine-month period, driven by robust project execution in the EPC business.
- The EPC segment has a promising outlook with a robust order backlog of INR3,179 crores, nearly four times the FY 2024 EPC revenue.
- The company successfully completed the divestment of its subsidiary, GMP Technical Solutions, receiving net sales proceeds of INR110 crores, strengthening its financial position.
- Vascon Engineers Ltd (BOM:533156) achieved a net debt reduction from INR124 crores in June 2024 to INR104 crores in December 2024, reflecting a focus on prudent financial management.
- The company is optimistic about its real estate segment, with upcoming projects like Om Sainath in Mumbai and Powai residential and commercial projects expected to contribute significantly to future revenue.
- The real estate segment showed lower revenue recognition in Q3 and nine months of FY25, leading to a decline in profitability compared to the previous year.
- EBITDA margins declined due to lower contributions from the real estate business, with the overall margin standing at 8% for Q3 FY25.
- The company has not yet achieved its INR1,500 crores order booking guidance for FY25, with a shortfall of INR1,000 crores remaining.
- Real estate sales have been lower than expected for the nine months of FY25, raising concerns about the ability to sell new projects.
- The company has faced delays in project launches due to regulatory approvals, impacting the timeline for revenue generation from new projects.
Ladies and gentlemen, good day and welcome to Q3 and nine months FY25 earnings conference call for Vascon Engineers Limited, hosted by Stellar IR Advisors. (Operator Instructions)
Please note that this conference is being recorded. I now have the conference over to Mr. Akhilesh Gandhi from Stellar IR Advisors.
Thank you, and over to you, sir.
Hello, am I audible now?
Yes, sir.
Good morning, everyone. I am Akhilesh Gandhi on behalf of Stellar Investor Relations, welcome you all to Vascon Engineers quarter three and nine months FY25 earnings conference call. We shall be sharing the key operating and financial highlights for the third quarter and nine months ended on December 31, 2024. We have with us today the senior management team of Vascon Engineers Limited, Dr. Santosh Sundararajan, he's the Group CEO; and Mr. Somnath Biswas, he
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