Vascon Engineers Limited

Analyst Meet Presentation

Q2 FY11
Agenda
1. Group Overview

2. Key highlights for the quarter

3. Financials highlights

4. Project highlights

5. Acquisition

6. Annexure
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Company Overview

Commenced operation in 1986 and present in the

EPC

Real Estate

Strategic Investments – Hospitality Sector

Unique Business Positioning

Real Estate Strategic Investments

EPC
Reputation of a Company
which provides the highest
quality for the right value and
in a timely manner.
Key to scalability and value
unlocking, building on the
strong EPC edifice to give it
the cutting edge
Driven by opportunities
arising from the growth
prospects of the company’s
EPC and Real Estate
businesses

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Key Differentiators

Broad based skill sets of Qualified & Experienced management team

High standards of corporate Governance and Transparency

Strong and diversified Revenue model

Timely execution of projects / Efficiency in delivery schedules

Competitive edge on account of EPC expertise

Technological innovations

Owned equipment base – leads to better utilization rates and reduced time for deploying
resources

Transparency in accounting methods adopted and business dealings

Aspiration to make a significant impact across business segments – driving growth

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Key highlights for the quarter

1. Signed agreement to develop township at Oragadam, Chennai

Company plans to develop a 105-acre township, predominantly residential, at
Oragadam on the outskirts of Chennai in four phases with total saleable area of
over 10 million sq. ft.

The project will be developed in a joint venture with Balakh realtors and the
association will be on a revenue-sharing basis.

2. Bagged new order worth Rs. 1,332 million

Company has bagged new orders worth Rs. 1,332 million during the last
quarter. Total EPC order book of the company stands Rs.38.5 bn. and backlog of
Rs. 26.6 bn.

3. Launched project Tulip - Phase II in Coimbatore

Company has Launched Tulip – Phase II, a residential project in Coimbatore with
total saleable area of ~ 0.2 million sq. ft.

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Key financials

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 Key financials – Q2 & H1 FY11
P & L (consolidated) Rs. in million
Growth
H1 FY11 Vs. H1
Particulars Q2 FY11 Q2 FY10 H1 FY11 H1 FY10 FY10

Total Income 2253.6 2199.2 4316.9 3625.0 19.09%

Total Income - EPC 1798.8 1755.2 3765.2 2896.7 29.9%
Total Income – Real Estate 135.5 348.8 206.7 583.9

EBIDTA 301.5 287.9 568.3 509.5 11.5%

Profit Before Tax 218.4 207.2 424.9 349.6 21.5%

Profit After Tax 177.7 132.2 316.2 237.3 33.2%

EPS (Rs.) - diluted 1.93 1.72 3.57 3.10

EBITDA Margin 13.4 % 13.1 % 13.2 % 14.1 %

PAT Margin 7.9 % 6.0 % 7.3 % 6.6 %

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Key Ratios

(consolidated)
Rs. in million

Particulars As on 30.09.10 As on 30.09.09

ROCE – annualised (%) 10.82 13.88

ROE – annualised (%) 12.22 15.04

Total Debt (Rs. million) 2,567. 8 2,129.5

Net worth (Rs. million) 6,953.3 4,648.2

Debt: Equity ratio 0.37 0.46

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EPC

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Business Model – EPC Business

ENGINEERING, PROCUREMENT & CONSTRUCTION Stability Driver

 Constructing factories hospitals, hospitality properties, office and

residential complexes, shopping malls, multiplexes, IT parks and
other buildings

 Strong Track Record & Reputation

 High integrity
 Highest Quality for the Right Value
 Timely Completion of Projects

 Competitive Bidding to win Contracts

 Recent fund raising exercise to boost prospects

 Repeat Orders from Joint Venture Partners across regions

 Forayed into Government contracts.

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Pan-India Presence
As on 30.09.10
Himachal Pradesh
EPC (Rs mn)
Order Book: 175 Haryana
Order Backlog: 85 EPC (Rs mn)

Order Book: 1,264 Delhi

Punjab
Order Backlog: 640 EPC (Rs mn)
EPC (Rs mn)
Order Book: 2,481
Order Book: 300
Order Backlog: 734
Order Backlog: 230

Gujarat
EPC (Rs mn)
Order Book: 3180
Order Backlog: 3180

Maharashtra
EPC (Rs mn)
Order Book: 24,975
Order Backlog: 16,667
Andhra Pradesh
Goa EPC (Rs mn)
EPC (Rs mn)
Order Book: 1,383
Order Book: 455 Order Backlog: 1,265
Order Backlog: 215

Tamil Nadu
Karnataka
EPC (Rs mn)
EPC (Rs mn)
Order Book: 61 Order Book: 3,939
Order Backlog: 0 Order Backlog: 3,293

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EPC – Key Projects
Rs. in million
Contract
Contracting Entity Location
Value
Delhi International Airport –car park Delhi 2,481
TN Assembly Complex (Block-B) Tamilnadu 2,109
Ruby Mills, Dadar Maharashtra 2,074
HDIL Maharashtra 1,791
Neelkanth Palacia,Mall & Business centre Maharashtra 1,333
KONDHWA Realty Maharashtra 999
Savitribai Phule Shikshan Prasarak Mandal Maharashtra 820
Neelkanth IT Park Maharashtra 759
North Town, Chennai Tamilnadu 748
BPTP - IT park Haryana 739
"Kshitij" Parmanandwadi Maharashtra 564
Villa Viviana Tamilnadu 562
Sinhgad Technical Education Society- Addition Maharashtra 536

Total Contract value of Rs. 38.2 bn. and Backlog of Rs. 26.3 bn.
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EPC – New orders bagged during the quarter

Projects Value (Rs. Million)

Park Mansion-BPTP 328
Forest County 300
Park Serence –BPTP 197
Sinhgad School - Pune 138
Caspia Hotel 121
Tulips –Coimbatore 100
Others 148
Total 1,332

New order bagged during H1 FY11 ~ 4.32 bn

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Real Estate

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Business Model – Real Estate
Scalability Driver

 Based on strong foundation of EPC experience ranks among the top ten builders
in India (source: Construction World publication in June 2007 )

 Expected to provide high scalability

 Cost efficient development model – Joint Development Agreements (JDAs) and

Joint Ventures lowers working capital requirements

 De-Risked Business Model – by investing in properties only after gaining

significant hands on experience from JVs and JDAs.

 Historic Land Bank purchased at low prices giving it significant scope for capital
appreciation.

 Conservative Accounting Policy

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Land bank – National Presence
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
Dev. potential 25.6

Goa Hyderabad
Dev. potential 0.6 Dev. potential 0.6

Coimbatore
Belgaum
Dev. potential 3.3
Dev. potential 0.2

Chennai Madhurai
Dev. potential 1.6
Dev. potential 11.6

Total development potential ~ 68.6 million sq. ft. 16

 Projects progress status

On going project updates As on 30.09.10

Vista Willows Forest County Willows Vista Tulip Tulip

Project Phase I phase I phase I Phase II phase II phase I phase II Windermere

Type Residential Residential Residential Residential Residential Residential Residential Mix

Location Nashik Pune Pune Pune Nashik Coimbatore Coimbatore Pune

Total saleable area (sq. ft.) 176,260 197,262 688,370 159,910 128,000 74,000 197,500 396,800

Total area sold (sq. ft) till sep 10 160873 143015 547,486 60,918 66,285 74,000 38,795 55482

% Area Sold 91% 73% 80% 38% 52% 100% 20% 14%

Apartments - 62
Total no. of apartments 126 60 386 126 112 48 112 Duplex - 21

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Acquisition of GMP Technical Solutions Pvt. Ltd.

 Company has acquired 90% of GMP Technical Solutions Pvt. Ltd with the cash
outflow of Rs. 626 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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The Strategic Roadmap

Expanding
Industry Portfolio

Pan Indian
Expanding opportunities in
Geographical terms of strategic
presence investments in
hospitality

Fortify an
Integrated
& De-
Risked
Model
Gaining significant
experience
Focus on through JDAs and
Technology JVs before entering
into land bank
investments
 Thank You
For further information, please contact :

M. Krishnamurthi/ Vivek Sakharkar

Vascon Engineers Ltd.
Contact : +91 20 3056 2300
Email: mk_murthi@vascon.com
viveksakharkar@vascon.com

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Annexure

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 Financial Statement B/S
Consolidated numbers
Rs. in million

Particulars 30-Sep-10 30-Sep-09

Liabilities
Capital 900.2 792.2
Reserves & Surplus 6,053.2 3,856.1
Total Loans 2,567.8 2,129.5
Minority Interest 69.2 74.9
Total Liabilities 9,594.9 6,854.1

Assets
Fixed Assets 2,381.9 1,028.6
Investment 832.8 836.9
Deferred Tax Asset 19.6 9.5
Net Current Assets 6,360.6 4,979.1
Total Assets 9594.9 6854.1
 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
the Company.

•This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company
makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness,
fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the
information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly
excluded.

•Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects
that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance
and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties 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 of
growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s
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