Vascon Engineers Limited

Analyst Meet Presentation

Q1 FY11
Agenda
1. Economic overview

2. Key financials

3. Project details – EPC

4. Project details – Real estate

5. Acquisition

6. Business positioning & Way forward

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Indian economy continues to be on strong footing
Strong GDP growth to continue Huge spending ahead in
9.20%
infrastructure 145
#
8.50% GCF in Infrastructure 122
7.40% USD bn. 102
6.70% 85
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59

FY 08 FY 09 FY 10 FY 11 E FY 10E FY 11E FY 12E FY 13E FY14E FY 15E

# RBI est. for FY11 UBS Estimates

FDI inflow getting stronger… …with significant investment in

construction, housing and real estate sector
Rs. bn.
2.21 Service
2.18
2.04 Sector
17% Construction
1.72 1.72
1.54 11%

1.21
Others
61%

Housing/
Real Estate
11%
Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Data for FY10
Total inflow of Rs. 25.9 bn.
Source: Citi research/UBS 3
Factors contributing to infrastructure and real estate growth

Strong FDI inflow

Govt. focus on in real estate,
infrastructure construction
development segment

Boost to
infrastructure
and real estate
growth

Easy availability of
Growth in IT/ ITES housing loan and
services affordable interest
rates

Infrastructure and real estate to show strong growth going ahead.

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Key financials
Key financials – Q1 FY11

P & L (consolidated)
Rs. in million

Particulars Q1 FY11 Q1 FY10 % Growth

Total Income 2051.1 1407.0

2009-10
45.8%

Gross Profit 449.1 288.04 VASCON

55.9%

EBIDTA 266.8 221.5 20.5%

Profit Before Tax 206.5 142.4 45.8%

Profit After Tax 138.4 105.2 31.6%

EPS (Rs.) - diluted 1.54 1.38 11.6%

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Key financials – Q1 FY11

Key Ratios (consolidated)

Particulars As on 30.06.10 As on 30.06.09

ROCE – annualised (%) 11.19 12.35

ROE – annualised (%) 12.23 14.19

Total Debt (Rs. million) 2,079.4 2,475.2

Net worth (Rs. million) 6,752.3 4,014.7

Debt: Equity ratio 0.31 0.62

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EPC Business

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EPC business – ongoing projects
Significant ongoing projects

Tamil Nadu State Assembly Complex (Block B), Chennai

Ruby mill, Dadar, Mumbai

HDIL commercial complex, Vidyavihar, Mumbai

Neelkanth Palacia, mall & business centre, Mumbai

Kondhwa Reality, Pune

Savitribai Phule Shikshan Prasarak Mandal, Pandharpur

North Town, Chennai

Sinhagad Technical Education Society, Ambegaon, Pune

Order book ~ Rs. 44,300 million

Order backlog ~ Rs. 32,300 million 9
 EPC business – new projects
New projects bagged during Q1 FY11

Factory – Legrand, Nashik

Pharma Plant - Gopaldas Visram, Mumbai

Bharti Realty Ltd, Ludhiana (Commercial )

North Town, Chennai (Residential)

Aamby Vally (villas), Lonavala (Residential)

TATA Housing, Lonavala (Residential)

Kondhwa Realty, Pune (Residential)

SMCC-Yamazaki Mazak, Pune (Commercial)

SMCC - Sumitomo Mitsui Construction Company

Order value of ~ Rs. 2,990 million

 EPC business – completed projects
Project completed during Q1 FY11

Multi Level Car Park - Delhi Airport Cipla - Indore SEZ

 Contract value of ~ INR 2,480 mn.  Contract value of ~ INR 1,447 mn.

 Construction tenure ~ 15 months  Construction tenure ~ 18 months

 Total constructed area ~ 1.2 mn. sq ft  Total constructed area ~ 1.55 mn. sq ft.

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Real estate Business

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Real estate - land bank
Chandigarh
Dev. potential 0.3

million sq. ft.

Ahmedabad
Dev. potential 2.7

Nashik
Dev. potential 1.7

Thane
Dev. potential 19.0 Aurangabad
Dev. potential 1.4

Pune
Hyderabad
Dev. potential 25.6
Dev. potential 0.6

Goa Coimbatore
Dev. potential 0.6 Dev. potential 3.3

Belgaum
Madhurai
Dev. potential 0.2
Dev. potential 1.6

Total development potential ~ 56.8 million sq. ft. 13

Projects launched during the quarter

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Forest County –phase I

Forest
County –
Project phase I

Type Residential

Location Pune
Total saleable area
(sq. ft.) 688,355
Total area sold
(sq. ft.) 575,680

No. of buildings 9
Total no. of
apartments 386

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 Willows – phase II

Willows -
Project phase II

Type Residential

Location Pune
Total saleable
area (sq. ft.) 290,930
Total area sold
(sq. ft.) 49,960
4
No. of buildings (Bld. D,E,F,G)
Total no. of
apartments 126

Note : Bookings for bld. F & G

is yet to be started.

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Vista - phase II

Project Vista- phase II

Type Residential

Location Nashik
Total saleable
area (sq. ft.) 112,000
Total area sold
(sq. ft.) 43,700
4
No. of buildings (Bld. F,G,H,I)
Total no. of
apartments 112

Note : Bookings for bld. H & F

is yet to be started.

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Tulip-phase I

Project Tulip -phase I

Type Residential

Location Coimbatore
Total saleable
area (sq. ft.) 73,940
Total area sold
(sq. ft.) 73,940
2
No. of buildings (Bld. A,B)
Total no. of
apartments 48

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Hotel projects

Four Points Duet Hotel

Project Four Points (Duet) Novotel

Location Pune Pune
No. of keys 232 320

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Projects completed during the quarter

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Real estate business – completed projects
Project completed during Q1 FY11

Willows -
Project phase I

Type Residential

Location Pune
Total saleable area
(sq. ft.) 168,675
Total Area Sold
(sq. ft.) 152,265

No. of buildings 3
Total no. of
apartments 60

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Forthcoming projects

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Real estate business – forthcoming projects
Projects to be launched in Q2 FY11

Windermere , Koregaon Park, Pune

(5 acres, approx. 325,000 sq. ft. high-end residential
project & 100,000 sq. ft. high-end commercial project)

Nature Spring, Talegoan, Pune

(Approx 57 acres mix development project).

Xotech, Hinjewadi, Pune

(2& 3 bhk)

Rosebay, Hadapsar, Pune

(2 & 3 bhk).

Tulips - Ph 2, Coimbatore
(2, 3, 3.5, 4 bhk)
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Acquisition

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Acquisition

 90% of GMP Technical Solutions Pvt. Ltd at a cost of Rs 626 million

 Turnover of GMP in FY 2010 was Rs 1267 million and PAT Rs 217 million

GMP has 3 divisions:

 Manufacturing: Clean rooms, office partitions, door sets, storage racks
 BMS: Integrated business management services; US FDA compliant for
pharma industry
 QA Technical Services: Validation and certification of weights and measures

 Acquisition to yield economies of scale. Synergy to strengthen capability to offer

turnkey solutions

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Business positioning and Way forward

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Synergizing EPC and Real estate business

Benefits
1. Risk diversification
2. Better quality and faster execution
3. Capability of turnkey real estate
projects
4. Faster reach to and understanding
of new locations
5. EPC facilitates market intelligence
gathering for real estate projects
6. Revenue-sharing model that cuts
risks

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Employees : Key strength to growth

Total Income vis-a-vis Manpower

Total Income No. of employees
(Rs. million)

10000 1000
Together
8000 800 Everyone
6000 600 Achieves
More
4000 400

2000 200

0 0
FY06 FY07 FY08 FY09 FY10

Total Income No. of employees

Awards during the quarter
Suzlon One Earth

 Global headquarters executed by Vascon on its

plot on a built-to-suit basis for Suzlon
 Rated Platinum by LEED, scoring 57 out of 58 points
 Rated 5-star by GRIHA
 Awarded as Best Corporate Building by AESA
 Makes optimum use of wind, rain and solar energy
 Acclaimed as “greenest corporate headquarters on earth”
 Construction completed on schedule in spite of
overwhelming odds
LEED—Leadership in Energy and Environment Design
GRIHA—Green Rating for Inhabited Habitat Assessment
AESA—Architects, Engineers and Surveyors’ Association

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Way forward

Leading Player in
EPC, Real estate,
Hospitality and
Infrastructure

Foray into
Hospitality
Ventured into
Real estate

Started as a
EPC company

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 Disclaimer

•This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vascon Engineers Limited (the
“Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or
subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever.
No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about
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makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the
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that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance
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include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance
of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels
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