Vascon Engineers Limited — Q4 FY26

Vascon Engineers Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ZHgiYpxq0XA Published: 15 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to Westcon Engineers Limited's Q4 and FY26 earnings conference call. As 0:11 11 seconds a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star 10 0:25 25 seconds on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:33 33 seconds Akillesh Gandhi from Stellar Investor relations. Thank you and over to you Mr. Gandhi. 0:39 39 seconds Thank you Mr. Good morning everyone. Hi Gandhi on behalf of Stellar Investor. Sorry Akillesh your voice is breaking. 0:49 49 seconds Is it better now? 0:51 51 seconds Um, please come in the network area. Hello. Is it better now? 1:00 1 minute You may try speaking. 1:03 1 minute, 3 seconds So, welcome to Engineers quarter 4 and FY26 earnings conference call. We shall be sharing the key operating and 1:11 1 minute, 11 seconds financial highlight for the fourth quarter and the financial year ended on March 31st, 2026. We have with us today 1:19 1 minute, 19 seconds the senior management team of Bashcon Engineers Limited. We have Dr. Santo Sundra Rajan. He's a group CEO. With him 1:26 1 minute, 26 seconds we also have Mr. Ravish Ra, Chief Executive Officer for Real Estate 1:33 1 minute, 33 seconds Segment. And we also have Mr. Somnat Biswas, Chief Financial Officer. Uh but before we begin, I would like to state 1:41 1 minute, 41 seconds that this call may contain some of the forward-looking statements which are completely based upon the company's beliefs, opinions and expectations as of 1:50 1 minute, 50 seconds today. The statements made in today's call are not a guarantee of future performance and also involve unfortunate 1:57 1 minute, 57 seconds risk and uncertainties. The company also undertakes no obligation to update any forward-looking statements reflect 2:05 2 minutes, 5 seconds development that occur after the statement is made. documenting the company financial performance including the investor facilitation have already 2:14 2 minutes, 14 seconds been uploaded and the stock exchange and company website I now invite Dr. Rajan state his opening remarks on the 2:22 2 minutes, 22 seconds company's performance for the fourth quarter and financial ended on the request March on 26 and after his 2:29 2 minutes, 29 seconds opening remarks we open the floor for question answer session. Thank you and over you sir. 2:37 2 minutes, 37 seconds Good morning everyone. I warmly welcome you all to the earnings conference call of Vascon engineers for the fourth quarter in financial year ending March 31st 2026. 2:48 2 minutes, 48 seconds Thank you for joining us today. I hope you have all had the opportunity to review our financial results and the investor presentation which we have 2:55 2 minutes, 55 seconds uploaded on the stock exchange and the company's website. Before I begin discussing the business performance, I would like to mention that FI26 was a 3:03 3 minutes, 3 seconds special year for WCOM as we have completed 40 years of our journey. Over the last four decades, we have continued to build the company with a strong focus 3:11 3 minutes, 11 seconds on execution quality, financial discipline, long-term relationships, and responsible growth. I sincerely thank 3:18 3 minutes, 18 seconds all our clients, partners, employees, lenders and shareholders for their continued trust and support. 3:25 3 minutes, 25 seconds Coming to the performance for the year, FI26 witnessed stable operational performance despite certain temporary 3:32 3 minutes, 32 seconds external challenges that we faced during the year. The company reported a 12% decline in revenue compared to FI25. 3:40 3 minutes, 40 seconds However, project execution conditions have gradually started normalizing across our key sites. Throughout the year, the company remained focused on 3:48 3 minutes, 48 seconds execution discipline, productivity improvement, cost control, and maintaining steady project progress. 3:54 3 minutes, 54 seconds During the year, we significantly strengthened our banking relationships and our working capital position. As of today, our total sanctioned working 4:01 4 minutes, 1 second capital limits stand at approximately 745 crores including both fund and non-f fund based limits out of which 337 crores remains unutilized. 4:11 4 minutes, 11 seconds Further, SBI completed a revised assessment of our working capital facilities with improved commercial terms including better collateral leverage and lower bank guarantee 4:20 4 minutes, 20 seconds margins. These improved uh terms have enhanced liquidity, improved cash flow efficiency, and strengthened our ability for faster project mobilization. 4:30 4 minutes, 30 seconds With stronger banking support now in place, our available working capital capacity can support execution of nearly 3,000 crores of additional EPC orders. 4:39 4 minutes, 39 seconds Coming to our EPC business, the EPC segment continues to remain the cornerstone of Bascon's growth journey. 4:46 4 minutes, 46 seconds Over the years, we have successfully completed more than 225 projects covering 45 million square feet across India. Our integrated turnkey execution 4:54 4 minutes, 54 seconds model and in-house design and engineering capabilities continue to remain key strengths for the company. 5:00 5 minutes We continue to focus on large high-v value projects across healthcare, institutional, infrastructure, industrial and residential segments. Our 5:08 5 minutes, 8 seconds strong execution track record has helped us build long-term relationships with marquee clients such as AMS, NBCC, Sitco, MMRDA, CAT Jimny and Vanta. 5:17 5 minutes, 17 seconds During FI26, our EPC revenue stood at approximately 928 crores. The moderation in EPC revenue during the year was 5:24 5 minutes, 24 seconds primarily due to cash flow constraints in two major government projects and internal organization changes at a major private client which impacted on-site decisions and project schedules. 5:35 5 minutes, 35 seconds During FI26, we secured new EPC orders worth approximately 762 crores across Maki projects like Royal Rides Same in 5:44 5 minutes, 44 seconds Ali MSD Navi Mumbai Municipal Corporation Specialty Hospital and Lotus Park in Aabad. Further to that, we are 5:52 5 minutes, 52 seconds also L1 currently for two projects valued to a total of about 500 crores where we are expecting the LOI soon. As 5:59 5 minutes, 59 seconds of March 31st 2026, our total auto book stands at approximately 2717 cr which is nearly 2.9 times of FI26 EPC revenue and 6:08 6 minutes, 8 seconds therefore provides a strong revenue visibility over the next two to three years. Importantly around 79% of the order book is from governmentbacked 6:15 6 minutes, 15 seconds projects providing better receivable receivable visibility and stronger payment security. 6:21 6 minutes, 21 seconds Despite aggressive pricing competition in the EPC industry during FI26, the company remained disciplined in its bidding strategy with a focus on 6:29 6 minutes, 29 seconds execution quality, margin protection, healthy cash flows, and sustainable long-term growth, which resulted in a relatively lowered order book during the 6:36 6 minutes, 36 seconds year. Going forward, considering the current business environment, the company intends to pursue projects a bit more aggressively with calibrated margin 6:44 6 minutes, 44 seconds expectations to strengthen order inflows and business growth. 6:49 6 minutes, 49 seconds Coming to the real estate business, operational progress across our real estate portfolio remained stable during FI26. During the year, we achieved sales 6:56 6 minutes, 56 seconds booking of approximately 96,735 ft with booking value of around 113 cr while collection stood at approximately 7:05 7 minutes, 5 seconds 132 cr. Our current portfolio includes projects such as tulips phase 3 in tower of ascent in karate, orchids 7:12 7 minutes, 12 seconds redevelopment in Santa Cruz and good life in Kaligam. Further strengthening our real estate leadership team, the company has appointed Mr. Ravish Rao as CEO for the real estate business. Mr. 7:22 7 minutes, 22 seconds Ral holds a bachelor's degree in electronics engineering along with a master's degree from the Indian Institute of Management, Kolkata. He brings over 20 years of extensive 7:31 7 minutes, 31 seconds experience in the real estate sector with strong expertise across P&L management, institutional fundraising, operational excellence, organizational 7:39 7 minutes, 39 seconds transformation, and customer- ccentric business growth. Prior to joining Westcon, we had leadership positions with reputed organizations like Shapuji, 7:46 7 minutes, 46 seconds Palanji and Everstone Group. At the same time, our near-time pipeline remained strong with projects such as Pawai, Praash Housing Society 7:55 7 minutes, 55 seconds and Tower of Future in Baner to be launched uh soon. Coming to the financial performance of FI26, 8:03 8 minutes, 3 seconds the company reported a consolidated total income of 984 crores for FI26 as compared to 1090 cr in FI25. The 8:12 8 minutes, 12 seconds decrease in revenue is in line with the factors discussed in the opening remarks. EITA for FI26 at 87 cr as against 100 cr in FI25. 8:21 8 minutes, 21 seconds PAD for FI26 is 49 crores compared to 126 in FI25. The higher profit in the previous year was primary driven by the exceptional gains arising from the sale of GMP. 8:32 8 minutes, 32 seconds During the year, we strengthened our liquidity position, improved banking support, maintained a healthy order book, expanded strategic relationships 8:40 8 minutes, 40 seconds and continued building a strong future project pipeline. With project activities gradually stabilizing across sites, stronger banking support, healthy 8:49 8 minutes, 49 seconds working capital availability, and a strong order book position, we believe the business is entering a more stable operational phase going forward. 8:56 8 minutes, 56 seconds With that we now welcome uh your questions. Thank you. 9:01 9 minutes, 1 second Thank you very much sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask questions may please press star and one on their touchstone phone. 9:12 9 minutes, 12 seconds If you wish to withdraw yourself from the question queue, you must press star and two. Participants are requested to use only handsets while asking a 9:20 9 minutes, 20 seconds question. Ladies and gentlemen, we will wait for a moment while the question to assemble 9:51 9 minutes, 51 seconds The first question is from the line of Rajendra from RK Ventures. Please go ahead. 9:59 9 minutes, 59 seconds Hello sir. Good morning. Hello. Yes sir, you're audible. Please proceed. 10:06 10 minutes, 6 seconds Yeah, my question is uh uh first I recently saw a building erected within a 10:13 10 minutes, 13 seconds short span uh with the technology named as pre-cast and prefab. So I wanted to 10:21 10 minutes, 21 seconds know whether this have we adopted this kind of technology or what is your view on that uh technology and secondly the 10:29 10 minutes, 29 seconds appointment of Mr. Raves Raalo uh is uh I wonder what were the thoughts behind 10:37 10 minutes, 37 seconds it and are you aggressively going to go for the real estate uh division? I just wanted to know please uh throw some light on that. Thank you. 10:49 10 minutes, 49 seconds Yeah. So your first question uh uh see there is pre-cast and prefab in the market. These are methods of construction which are very popular in 10:57 10 minutes, 57 seconds places like Singapore and a lot of Europe where labor is uh much more expensive than it is in India and they 11:04 11 minutes, 4 seconds also have the infrastructure available in these countries to transport massive uh tonnage of you know pre-cast slabs or pre-cast elements from factory to site. 11:14 11 minutes, 14 seconds uh in India we are still you know a stage away from reaching those kind of uh utilization of this technology. it 11:24 11 minutes, 24 seconds has come. There are a couple of vendors who are able to do it. Uh we have done in a smaller scale in a few projects but 11:30 11 minutes, 30 seconds to do a complete uh pre-cast project. Uh the cost is generally higher at this point of time than doing it uh in the 11:38 11 minutes, 38 seconds old fashioned uh cast in C2 method and most of our projects with government are you know uh the design or the uh 11:46 11 minutes, 46 seconds technology that is used for construction is decided by our client. uh only in our own real estate projects do we get to 11:53 11 minutes, 53 seconds make such decisions of you know deciding which technology to go with and as of now the residential projects we're doing in real estate do not really support us 12:01 12 minutes, 1 second to use this but we are very well aware of this technology we have in fact made advances on our TOA project to come one step closer where we are using another 12:10 12 minutes, 10 seconds technology which is uh a combination of steel with pre-stressed concrete with uh normal uh you know steel all three I 12:19 12 minutes, 19 seconds mean I'm talking of uh cold formed or or hot rolled structural steel but not this is this is a deviation from what the 12:27 12 minutes, 27 seconds other people are doing in terms of composite structures this is a combination of all three elements so we are experimenting with that uh in our own project if that goes well we think 12:35 12 minutes, 35 seconds that's a good step will be taking forward to come somewhere in between pre-cast and cast in C2 where we can reduce labor and still control costs 12:45 12 minutes, 45 seconds uh to answer your second question uh see we are going to be aggressive on real estate cautiously aggressive. We are we have always maintained over the last 3 12:53 12 minutes, 53 seconds four years we are not putting in equity to buy land. Can you hear me? Yes sir. 13:00 13 minutes Yeah. So we will not be putting in equity uh to buy land. Our method will be you know joint ventures uh or 13:08 13 minutes, 8 seconds redevelopment and uh so we look at that as glorified contracting where essentially added to the contracting part we bring the sales marketing and uh 13:16 13 minutes, 16 seconds uh you know uh do a sort of a DP model or uh you know the margins overall expected in this model is higher than 13:24 13 minutes, 24 seconds the EPC that we are doing for others and so we will stick to this uh we have a brand uh which is well established in 13:31 13 minutes, 31 seconds this part of the country we're operating only in Pune, Mumbai and Point Bur at this point of time and uh we have some 13:39 13 minutes, 39 seconds uh work already lined up. We intend to uh ensure that you know we do not borrow too much and go into a cash flow problem. So we are not in a hurry uh 13:48 13 minutes, 48 seconds desperate hurry of any sorts. But at the same time real estate will grow. Uh it has to do much more than it is currently doing. It has not yet reached levels 13:56 13 minutes, 56 seconds that we are capable of doing or we should be doing even to sustain overheads. Uh and so we thought some leadership thought was needed. uh you 14:04 14 minutes, 4 seconds know we did have Mr. Rajesh Matray who was with us 2 3 years ago he then moved on and we didn't appoint CEO for the last year plus but uh we really felt we 14:13 14 minutes, 13 seconds needed a good leadership to take that part of the business forward and hence we were very happy to find Ravish who seems to be the perfect fit for our 14:20 14 minutes, 20 seconds corporate culture as well as this line of business. Thank you sir. 14:28 14 minutes, 28 seconds Thank you very much. That's all from my Thank you. A reminder to all the participants that you may please press star and want to ask questions. 14:38 14 minutes, 38 seconds The next question is from the line of human from state port. Please go ahead. 14:45 14 minutes, 45 seconds Yeah. Hi. Uh good morning. Uh my first question is uh we had a few slow projects. Okay. 14:55 14 minutes, 55 seconds Royal rides and then MP and Sudamani. 14:57 14 minutes, 57 seconds Okay. based on the CPT what we have shared uh what is the status now and uh 15:05 15 minutes, 5 seconds are we going to complete the projects within the timeline what were initially announced or will it lead to certain 15:13 15 minutes, 13 seconds delays and uh also last quarter there was some discussion on payment uh being slower from the government side in the 15:21 15 minutes, 21 seconds process what is the status now uh both these things I'm very Sorry, I couldn't hear the 15:29 15 minutes, 29 seconds first part of your message at all. It was all silent. Could you just repeat your your questions, please? 15:36 15 minutes, 36 seconds Yeah. So, first question was from Royal. 15:38 15 minutes, 38 seconds Go ahead, Mr. Rupad. Please use your handset, sir, because your voice is muffled. One second. 15:47 15 minutes, 47 seconds Yeah, sure. Am I audible now? Yes. Yes. 15:52 15 minutes, 52 seconds Yeah. So, my first question was uh on royal rights. Okay. NMMC and Dini. What 15:58 15 minutes, 58 seconds is the progress now? And uh will it lead to any delay in these projects because 16:04 16 minutes, 4 seconds of uh last few quarters being slow and what is um in last quarter also there was some discussion of uh lower payments 16:13 16 minutes, 13 seconds in some of the government related projects. What is the status now and has the payments started being timely or 16:22 16 minutes, 22 seconds there is still some amount of delay what you are seeing? 16:27 16 minutes, 27 seconds Yes. So uh see there is Royal Rides has not yet started at site. So we are not in a position to uh you know execute 16:35 16 minutes, 35 seconds anything or raise a bill yet. Uh it has uh been longer than we anticipated. We hope in the next quarter or so that this 16:42 16 minutes, 42 seconds project will kick off. Uh so we have not realized any revenues from that project although the project is very much live at this point of time. uh as regards 16:50 16 minutes, 50 seconds these government projects we had a major uh cash flow crunch from two projects which is uh Synindhud as well as the 16:56 16 minutes, 56 seconds Sapole project in Bihar uh over the last year and in both these projects we could uh you know we I mean we fell way short of the target that we should have done 17:05 17 minutes, 5 seconds uh over the year uh we had an option I mean I I'll make this uh you know uh as a strategy of the company over the last 17:13 17 minutes, 13 seconds 3 four 6 months we've been grappling with this and me on what do we do to deal with this situation uh there are only two options on the 17:20 17 minutes, 20 seconds table. One was to you know borrow and keep the momentum going at site. Uh if we had done that maybe we would be on a 17:28 17 minutes, 28 seconds borrowing of 50 60 crores then that would have led to 100 plus cr of revenue because the fronts were available at site. Uh we could have executed work and 17:36 17 minutes, 36 seconds you know achieved our 1100 target for EPC. Uh however as a company strategy we have always maintained over the years which we have learned from our 17:45 17 minutes, 45 seconds experiences of you know 10 12 years ago when we went through a really bad patch that uh in EPC we really do not want to 17:52 17 minutes, 52 seconds be funding our clients uh you know if we do have cash flows we would rather fund real estate of ourselves rather than funding our EPC clients projects and so 18:00 18 minutes the discipline is very clear that if funds dry up from our client and that particular account we have a different bank account for each project and if that account is not able to fund the 18:09 18 minutes, 9 seconds project anymore more we will not put money into it. And so we we we stuck to our strategy. We stuck to this uh corporate philosophy and therefore we 18:17 18 minutes, 17 seconds let go knowingly we let go of the revenue but we have not uh therefore you know created a huge amount of uh data uh 18:25 18 minutes, 25 seconds status at this point of time and I think uh between the devil and the deep sea I think we would choose this uh as a better place to be in. uh coming to 18:34 18 minutes, 34 seconds today from March onwards both these projects have started paying uh and the work we have remobilized over April and the work has started again both at uh 18:43 18 minutes, 43 seconds Sinduur as well as Bihar in Bihar very much in full flow in Sinduur we are in the process of restarting uh the work 18:50 18 minutes, 50 seconds and so we are hopeful that see the good part is none of this turnover has gone away from our order book uh there has been no cancellation of order or reduction of order it is just 18:59 18 minutes, 59 seconds postponement so the order that couldn't be executed last year will hopefully now get executed ed over this uh current year. 19:06 19 minutes, 6 seconds Okay. And one more thing, the way the uh things are or the scenario is it seems 19:14 19 minutes, 14 seconds next one or two years could be quite inflationary. Okay. What are your thoughts there and how are you bidding because one of the important or the largest component for us is labor cost. 19:24 19 minutes, 24 seconds Okay. And labor is not a direct pass through for us. Okay. And in last few quarters you have stated that uh there is high intensity of competition. Okay. 19:34 19 minutes, 34 seconds And uh margins also may not be what we want but we want to go slightly lower around 10 11%. To get the orders but in 19:43 19 minutes, 43 seconds this scenario how are you bidding and how are you strategizing and also the projects which are getting delayed because of government or some other issues. Okay. 19:54 19 minutes, 54 seconds How are you means operationally how are you making them more efficient and uh more cost focused looking at the 20:03 20 minutes, 3 seconds scenario what we have over next two years. 20:07 20 minutes, 7 seconds Sure. So uh see there are two parts uh to the question. One is you're absolutely right. I mean we are now quite wary that uh inflation is going to 20:15 20 minutes, 15 seconds go up. The effects of the war are not yet seen and they are going to be seen over the next uh few months. uh in some 20:22 20 minutes, 22 seconds ways sure they will affect the margin. I mean I cannot say that we can protect ourselves in all directions but uh the 20:30 20 minutes, 30 seconds good news is in most of our government projects we have uh you know inflation linked indexes which will give us uh 20:39 20 minutes, 39 seconds escalations as we go uh about the job month on month. So these sort of even cover labor not that directly uh that we 20:47 20 minutes, 47 seconds can build the exact amount of inflation that we see in labor but the indexes get updated month on month sometimes it's the CPW index sometimes it's the central 20:55 20 minutes, 55 seconds index from Delhi uh whichever indexes is written in the contract we would get compensated for escalations in cost 21:02 21 minutes, 2 seconds overall material plus labor to to a decent extent uh because of this uh on the private side yes labor is generally 21:10 21 minutes, 10 seconds not covered uh but our exposure to the private sector Thankfully at this point of time is not much either. Uh so we 21:17 21 minutes, 17 seconds will be looking for projects. Yes, we will be trying to go aggressive on margins because we've not taken enough order as we wanted to. Uh but we will be 21:25 21 minutes, 25 seconds looking for projects that cover us on escalations and uh to answer your second part of the question. The delays that have happened at site again the escalations will be available to us. 21:34 21 minutes, 34 seconds However, when we take a call, uh, you know, when some of these things happen, yes, on those projects, a little bit of margin, you know, maybe a half a basis 21:43 21 minutes, 43 seconds point would get affected if there's a six-mon delay. Uh, you know, because we'll get covered for escalations, but the cost of idling at site over this 21:51 21 minutes, 51 seconds period is not easy to recover. Although we will be making our claims eventually some of these things will go to arbitration and if we win, we we may 21:59 21 minutes, 59 seconds recover much more than uh the profit anticipated. But cautiously speaking, we could expect you know a 0.5% dip in one or two projects. 22:08 22 minutes, 8 seconds And one last question then I'll join back in the queue. Uh we are having the preferential shares. Okay. At rupees 40 22:17 22 minutes, 17 seconds we are raising those shares. Okay. Can you tell the purpose of it and how are you thinking about though it's a very 22:24 22 minutes, 24 seconds small capital but still over a period of time what is your thought process and the purpose? 22:32 22 minutes, 32 seconds for that. 22:34 22 minutes, 34 seconds So you would be aware more than a year ago we were trying to do a QIP. Uh that didn't go through the prices then came 22:41 22 minutes, 41 seconds down. uh all over the last two years you know we've been uh saying that we do need a little bit of equity capital uh 22:50 22 minutes, 50 seconds especially in the real estate side uh you know because we do not either we look for project level equity or we look for a company level equity to rather 22:58 22 minutes, 58 seconds than borrow at a very nent stage for the real estate uh so that QIP didn't pan through we were waiting uh now at this 23:06 23 minutes, 6 seconds point of time we did get a strategic investor who was very bullish on the company who was also strategic and would ideally be helping us uh you know with 23:14 23 minutes, 14 seconds certain uh projects and growth going forward. Uh and so and Mr. Basu Devan and family them they also felt that it's a right time you know the share price 23:23 23 minutes, 23 seconds had dropped to as low as 40 they also felt it's a it's a time that they need to back the company and raise their holding a little bit as much as they 23:31 23 minutes, 31 seconds could. So combination of these two I think we came up with this 80 cr we do not want to go much higher and dilute at low share price at the same time a 23:40 23 minutes, 40 seconds little bit of breather equity within the company is uh you know welcome at this stage so all factors put together we took this call 23:48 23 minutes, 48 seconds okay I'll join back in queue for further queries uh yeah thanks thank you thank you anyone who wishes to ask questions may 23:57 23 minutes, 57 seconds please press star and one now we'll take the next question from the line of Vun Shivram from Choice Institutional Equity. Please go ahead. 24:07 24 minutes, 7 seconds Hi sir, am I audible? Yes. Yes. 24:11 24 minutes, 11 seconds Good morning sir. So basically I had a few questions on the execution capability and balance sheet quality. So from an execution capability standpoint 24:20 24 minutes, 20 seconds uh as we look at the company the annual construction throughput would scale up and we would need additional investments 24:27 24 minutes, 27 seconds in machinery right. So uh what would be helpful if you could share the FI26 and FI27 capex plans uh so what we will be 24:36 24 minutes, 36 seconds planning and what we have done at FI26 sorry yes our capex in EPC is not more than uh 24:46 24 minutes, 46 seconds four to 5% of the top line that's all we would need to invest uh in terms of machinery or shuttering equipment that 24:54 24 minutes, 54 seconds we would need at a early stage when the project starts. So if you're looking at a target of you know 1,000 to 1200 crores next year then we will be needing 25:02 25 minutes, 2 seconds only about 50 crores of uh capex. Now to fund this capex also normally the good part in EPC we are we have advances available from clients against bank 25:11 25 minutes, 11 seconds guarantees and so we would not be having to borrow externally to fund this capex requirement if at all. Uh also we do 25:19 25 minutes, 19 seconds have at this stage a decent amount of assets within the company. So maybe this 50 cr could even come down a bit. uh we would see case to case depends on what 25:27 25 minutes, 27 seconds kind of projects. Sometimes the projects need specific kind of shuttering material like myan or table forms which we might not have enough in stock and 25:34 25 minutes, 34 seconds then we would have to invest uh some projects do not need that kind of investment. We may have cranes and other machinery available with us in which case the investment or capex could be 25:43 25 minutes, 43 seconds much lower to start a project. So but in all in all it's not a big worry in terms of uh funding that because we do get advances from our clients. 25:56 25 minutes, 56 seconds Understood sir. Thanks for the detailed answer. Uh moving to the next question. 26:01 26 minutes, 1 second Sir FY26 appears to be relatively softer than originally expected across few metrics. So internally have there been any organizational or process level 26:09 26 minutes, 9 seconds changes that we have made to improve uh execution/ project selection uh and improve our consistency going forward. 26:19 26 minutes, 19 seconds To be honest uh see we've had a good run with the government over the last 3 four years. Uh we've always maintained it it's you know we're very bullish about 26:27 26 minutes, 27 seconds working for the government. It has been uh a timely payment all the all along. 26:32 26 minutes, 32 seconds This is the first time and when we make projections also to be honest when we make projections we do buffer in you know about a seven eight to 10% uh 26:41 26 minutes, 41 seconds chance of one project you know probably getting stuck or not paying on time uh we do factor in a little bit before we project uh our numbers but this was 26:50 26 minutes, 50 seconds really unfortunate that three projects at one go three big projects which were you know executing which were running at full speed uh at one go uh stopped 26:58 26 minutes, 58 seconds paying us and uh so we we had to we had no choice but to face the shrink you know as I said otherwise we had to pump 27:05 27 minutes, 5 seconds in money which we did not want to do and so we we said let's let's face it uh going forward in terms of looking for 27:14 27 minutes, 14 seconds projects we've always been cautious we've always been trying to look for projects that are better pay masters in terms of you know hospitals in uh which 27:22 27 minutes, 22 seconds which normally doesn't stop or projects in uh tire three tire two areas where it is not politically sensitive uh and good 27:30 27 minutes, 30 seconds quality private client So that is what even our current order book is. So I think on that front it is just bad luck that last year you know 27:38 27 minutes, 38 seconds elections in Bihar led to this situation uh in Bihar I mean we are at the end of the day uh I would say vulnerable to 27:46 27 minutes, 46 seconds some of these risks uh fingers crossed going ahead you know strategy for bidding will remain pretty much the same. I don't think we have earned badly 27:54 27 minutes, 54 seconds on that front. Uh it's a little bit of bad luck which I hope you know doesn't reoccur for us this year. And just to add on this aspect say basically 28:03 28 minutes, 3 seconds whatever the shortfall you are talking about what you project it is not due to the lack of internal capability or something like that. It is only a 28:10 28 minutes, 10 seconds strategic call has been taken by us not to pump money or invest our equity capital to run the government project otherwise this number could have go up 28:18 28 minutes, 18 seconds but then there is no point of pumping money and then creating huge receivable in the system. So that is a strategy call has been taken by us. It is not the 28:26 28 minutes, 26 seconds shortfall is not due to internal capability or something like that. So we are very capable to execute more what he did as as of now. 28:36 28 minutes, 36 seconds Understood sir. So basically then how should we look at FY27 across like growth in revenue and order book and then looking at our debt levels going forward. 28:46 28 minutes, 46 seconds Yes. 28:46 28 minutes, 46 seconds Yes. So FYI 27 again now time to stick take our neck out. I would say uh we were going to do 1200 last year. We've 28:54 28 minutes, 54 seconds slipped. We are below a,000. We would be uh targeting to do 1200 in this coming year as our uh you know top line uh 29:01 29 minutes, 1 second including real estate and EPC. EPC should cross,000 uh real estate should cross 200 put together we can take a target of 1200 uh 29:10 29 minutes, 10 seconds is what we have internally seen and as I said I mean this is after buffering in a bit of uh pessimism inside uh we don't 29:18 29 minutes, 18 seconds want to be extremely optimistic. uh the what was the second part of the question? 29:26 29 minutes, 26 seconds Yeah, in terms of auto booking uh order booking we are currently at an order backlog of 2,700 crores which is lower than where we want to be for sure. As I 29:35 29 minutes, 35 seconds mentioned in my uh remarks uh that we are L1 currently in about 500 crores hopefully in the next few days uh we 29:43 29 minutes, 43 seconds will be able to back those orders. So this order backlog will go to 3,200. 29:48 29 minutes, 48 seconds Uh for last year we wanted to take an order book of you know 1 1500 crores. 29:53 29 minutes, 53 seconds We've achieved 760. If we add this 500 it it still goes to 1260. There's still a shortfall of about 200 crores but that 30:00 30 minutes would be what it was for the uh previous year. This year we want to take another 1500 crores excluding the 500 I'm talking about. So we want to end the 30:09 30 minutes, 9 seconds year at about 4,000 crores. uh you know which we wanted to do last year but we want to end this year with about 4,000 crores of order backlog close to 4,000 crores. 30:19 30 minutes, 19 seconds So continuing on the bord order book so the execution in F27 would be H1 heavy or H2 heavy sir how should we look at it? 30:28 30 minutes, 28 seconds execution is always H2 heavy in our uh I mean if you look at historically all our numbers uh you know quarter two is rains 30:36 30 minutes, 36 seconds uh quarter 1 is just about scaling up quarter 3 and quarter 4 is where the numbers really come in only last year was an anomaly for us because we were 30:44 30 minutes, 44 seconds doing we were on that up to achieve 1200 1100 plus on EPC 1100 on EPC and Q1 and Q2 were going fine Q3 and Q4 because of 30:52 30 minutes, 52 seconds these cash flow issues uh you know hit us bad but if if no such things happen then generally execution is always uh H2 heavy. 31:03 31 minutes, 3 seconds Understood. So management had earlier mentioned being so we have mentioned the L1 on a sizable order V by L1. So could you provide an update on how much of 31:11 31 minutes, 11 seconds that has been converted into final order in our books and what about the current bid pipeline? What does that look like? 31:19 31 minutes, 19 seconds Yes. So we we got about uh 300 crores in the last three four months. two orders which we have already uh declared. 31:27 31 minutes, 27 seconds Currently we are L1 in about 500 crores which we are hoping to receive soon. Uh beyond that we are actually also 31:35 31 minutes, 35 seconds aggressively at the last stage of bidding for about you know 2,000 crores of orders uh three four big projects 31:41 31 minutes, 41 seconds which we are very hopeful to back uh but again it might take a couple of months before uh those decisions are out from the client. 31:52 31 minutes, 52 seconds The last would be a bookkeeping question sir on the balance sheet. So on the loans and other financial assets line item is there any part related to old 32:00 32 minutes receivables advances any amount which will take longer to recover in that nothing I mean we we keep providing for 32:10 32 minutes, 10 seconds I mean our auditors make sure that we keep providing for uh really old receivables or stuff receivables on the EPC front. So generally whatever is 32:18 32 minutes, 18 seconds receivables in the book we do hold good that we do not see them as under risk at this point of time. 32:25 32 minutes, 25 seconds We are having internal policy of bucket provisioning also. So whatever the old reason though we are pursuing and we are quite hopeful to get this thing done but 32:33 32 minutes, 33 seconds as a prudent policy we kept on doing some bucket provision. So so that there will there will be no shock in case of 32:40 32 minutes, 40 seconds any eventuality which is very unlikely but that will not going to impact anymore. 32:47 32 minutes, 47 seconds Understood. So thank you for taking all my questions and all the best sir. Thank you. Thank you. 32:56 32 minutes, 56 seconds The next question is from the line of Himmanu Padai from Steford. Please go ahead. 33:02 33 minutes, 2 seconds Yeah. So on the cash only. Okay. In last one year the debt has risen by around 85 crores. Okay. We had a 50 crores of PAT. 33:14 33 minutes, 14 seconds Okay. Hey, what would be the major investments be made in FI26 in in what businesses or places? Secondly, also can 33:22 33 minutes, 22 seconds you tell what was the operating cash generated EPC business and real estate business separately just to have a 33:29 33 minutes, 29 seconds clarity of uh uh where the money is uh going or and where it is not going. 33:37 33 minutes, 37 seconds So the enhancement by augmentation of debt primarily uh has gone into the real estate as because as as we communicated 33:45 33 minutes, 45 seconds earlier also since we dropped the QIP plan. So obviously the real estate uh required some capital inflow otherwise 33:53 33 minutes, 53 seconds it could not go through. So that already we have communicated earlier conference call also whatever the date has been 34:00 34 minutes raised majorly through the uh it has been put into the real estate business only. So to maintain the project continuity and all these things uh that 34:10 34 minutes, 10 seconds EPC EPC operating cash flow is 20 uh is uh 20 negative and is 100 34:17 34 minutes, 17 seconds negative. So as that the money has been pumped into the increased that's it 34:27 34 minutes, 27 seconds no EPC is minus 20 the operating cash flow you are saying and real estate is how much 34:34 34 minutes, 34 seconds 100 okay and uh on our residential projects 34:41 34 minutes, 41 seconds any execution and thought process because some of the projects are still moving very slowly. Okay. 34:50 34 minutes, 50 seconds In terms of sales, okay, any thing what we can do means the basically whatever your observation 35:00 35 minutes is correct. So that's first thing what we did we we got rubbish in our system to boost up the cells. The first thing 35:08 35 minutes, 8 seconds we did and we're quite hopeful that this will see basically if you look at that the sales is slow in terms of the orchid 35:15 35 minutes, 15 seconds is concerned otherwise that other projects are more or less whatever the ongoing the sales is clearly done some closer and part three is there which is 35:23 35 minutes, 23 seconds always there some 10 five 10% is always remain which is sold at the later stage but what is happening that one that this 35:31 35 minutes, 31 seconds is a long even this is our first redevelopment project in Bombay so typical minds in Bombay redevelop open project unless project comes to a very 35:39 35 minutes, 39 seconds reasonable level the attraction doesn't go be very fair enough. So now we are at the fifth slab level a lot of inquiry is 35:46 35 minutes, 46 seconds happening. So the attraction is quite bit quite a bit now and at the same time the number what you are talking that is only the 35:56 35 minutes, 56 seconds sales we are talking which has been registered but there are couple good amount of couple of bookings are there which is still not registered that's why it is not coming into the uh report 36:04 36 minutes, 4 seconds portfolio. So actual number is slightly heavy higher than what we are talking about but at the same time that inquiry 36:13 36 minutes, 13 seconds level has gone up drastically and we are hoping to convert this inquiry into the uh sales very soon. So we have a we have 36:22 36 minutes, 22 seconds we have our internal target month to month on month and quarter and quarter which is aggressively following and is tracking all the channel partners and system to get it done execute properly. 36:33 36 minutes, 33 seconds So we we are we are quite focused to get this sales conver. 36:40 36 minutes, 40 seconds Okay. And uh one more thing uh on the residential side now uh if I means what 36:48 36 minutes, 48 seconds does our brand should stand for because we have had uh a CI CEO generally on the business. Okay. And now also the new CEO 36:58 36 minutes, 58 seconds has a pretty good uh profile. Okay. If we look at his background and everything 37:05 37 minutes, 5 seconds but somehow it this business has not really grown and historically we had financial 37:12 37 minutes, 12 seconds constraints but what are the priorities we are setting for him and also 37:20 37 minutes, 20 seconds where does we want the brand to stand for because at some point the sales momentum and the sales value or the per 37:29 37 minutes, 29 seconds square feed depends on the brand's uh strength. Okay. Uh so on on that front 37:37 37 minutes, 37 seconds what are we thinking and doing? Uh some thoughts on that will be helpful and how are we looking at our own brand or we are trying to build. 37:48 37 minutes, 48 seconds So I think see we do we do have a strong brand. I do not uh you know the brand recall has sort of slipped over the last 37:56 37 minutes, 56 seconds few years but even today in Pune the brand is a very strong brand we've never lost value on our brand the quality of construction or project that we deliver 38:05 38 minutes, 5 seconds uh is is very well known to the uh customers and uh so but you are right that given this brand we have been underperforming in real estate over the 38:13 38 minutes, 13 seconds last 3 four years uh you know it has taken us a year or two longer than we thought to you know kickstart uh this 38:21 38 minutes, 21 seconds part of the business. I mean uh 2016 17 we were down on both lines of business. 38:26 38 minutes, 26 seconds Then we've you know given a flip to the EPC business which has sort of uh gone to levels of organic growth. Uh the real 38:34 38 minutes, 34 seconds estate at 100 and 200 cr level levels of execution which the EPC was doing 300 crores 350 crores and it was not sustainable to cover the overheads at 38:42 38 minutes, 42 seconds that point of time. the real estate is in that same situation for us at the bottom of the curve where we are doing only you know 100 200 crores a year. Uh 38:50 38 minutes, 50 seconds and turnovers like this will not be doing justice to the vascon brand will not be covering our real estate overheads and so that is definitely not 38:59 38 minutes, 59 seconds where we want to be. Uh we should be crossing 300 400 where we will then be seeing you know good uh BBTs coming from 39:06 39 minutes, 6 seconds the real estate side. In line with this however see we do not uh we are facing a little bit of uh slow sales as you 39:15 39 minutes, 15 seconds mentioned in both Telang which took us a year plus and now in orit we also took a call same like in APC we took a call 39:23 39 minutes, 23 seconds last year that we do not want to borrow additionally another 100 crores and launch two more projects before uh getting our house in order as far as 39:30 39 minutes, 30 seconds oids and couple of the old projects are concerned so we said we'll take a breather for a few months we do have pile launch and we do have Prakash launch both of which are lined up for 39:39 39 minutes, 39 seconds this year uh which will then help us achieve much higher turnovers going forward and uh yeah so it has been 39:46 39 minutes, 46 seconds slower than it than we wanted it to be it is much lower than where it should be for the Vascon brand we are very well aware and uh so that's why you know we 39:55 39 minutes, 55 seconds we re-energizing the team with a new sales team under Ravish and giving it a fresh push so that over the next 2 three 40:03 40 minutes, 3 seconds years we we climb start climbing the curve and then don't look back. Okay, thank you and uh best of luck. 40:12 40 minutes, 12 seconds Thank you. 40:14 40 minutes, 14 seconds Thank you. The next question is from the line of RMC OA from NA equ. 40:22 40 minutes, 22 seconds Yeah. Hi, thanks for the opportunity. So my question uh now was on the real estate side. First one uh whatever the 40:31 40 minutes, 31 seconds value of projects which are there in pipeline uh the current under construction as well as future if it can 40:38 40 minutes, 38 seconds help us uh in terms of what is the pre-sale and collections for the next two to three years wise it will help us 40:46 40 minutes, 46 seconds in terms of understanding the cash flows that's my first question see just to answer your first part is 40:54 40 minutes, 54 seconds that see whatever the four project is currently ongoing and another is on the pipeline. If you look at that four project which is ongoing which is having a substantial sales and all this thing 41:03 41 minutes, 3 seconds though it is not being recognized in the system but if this core project is having a total topline in the range of close to 600 core out of which 125 has 41:12 41 minutes, 12 seconds been recognized and another 100 475 to be recognized over a span of 18 to 24 months max to max. So 41:21 41 minutes, 21 seconds okay and then other four is also in the pipeline out of which power is to be announced very soon. It is on the verge 41:27 41 minutes, 27 seconds of launch and probably Q2 or Q3 the procash will also be launched but what about the four project in the pipeline 41:34 41 minutes, 34 seconds the total top line is almost 1100 cr so which will be spanned over next uh four 41:41 41 minutes, 41 seconds years horizon you can take so okay okay and and uh since you know in 41:48 41 minutes, 48 seconds real estate uh you only book the revenue once the project is completed in 100 hours uh how the timelines plan out 41:58 41 minutes, 58 seconds actually balas handover is happening in FI 2728 or it is spitting to FI 29 42:05 42 minutes, 5 seconds no no that what about the four four ongoing project I were talking about that almost close to 500 C revenue will 42:12 42 minutes, 12 seconds be recognized so out of which 50% more more than 50% we are expecting to be recognized in 2627 and balance 50% in 42:21 42 minutes, 21 seconds 2728 okay okay nice to hear that I mean second question sir was that uh you know 42:28 42 minutes, 28 seconds this MOU we have signed with Adani group for execution uh if you can just actually you know provide some color on 42:36 42 minutes, 36 seconds what kind of potential revenue and aa margins you can generate from thisou in 42:42 42 minutes, 42 seconds the next two to three years and very sorry we really not having any 42:50 42 minutes, 50 seconds concrete data to you know sort of answer that question uh we have a very Open MOU with Aani they've chosen as one of their 42:58 42 minutes, 58 seconds partners. Uh whenever we do talk to them there is huge pipeline of projects these numbers could be mind-boggling uh you 43:05 43 minutes, 5 seconds know if if I start throwing out what we in discussion with them but however I think till ground breaks on these projects and we have a real order in 43:13 43 minutes, 13 seconds hand uh we do not want to be speculating on the numbers that these could lead to. 43:18 43 minutes, 18 seconds We are currently talking on at least four five projects with them. Uh they're taking longer. These are all projects they so the method that they have used is to bring in a construction partner at 43:27 43 minutes, 27 seconds a very early stage which is what we are also realizing that they they want us to be involved at a very naent stage of the project. Uh the approvals are still 43:36 43 minutes, 36 seconds pending in these projects. the uh detailed planning and the design is in process uh from their side and they just want us to be by the side in all of 43:45 43 minutes, 45 seconds these meetings so that we add value stage by stage at this you know in all these stages so that by the time it comes to construction uh it is a very 43:53 43 minutes, 53 seconds construction friendly design which Bascon as a construction partner has been uh privy to from the beginning conceptualized stage of the project. So 44:01 44 minutes, 1 second that is their method and therefore we have been invited to many such meetings. 44:04 44 minutes, 4 seconds We are participating in a lot of such meetings but uh we are still a few months away from any of these projects 44:11 44 minutes, 11 seconds actually breaking ground uh at the site and when that happens and we have a hard you know LOI in hand with a value uh 44:18 44 minutes, 18 seconds we'll start projecting numbers but only number as of now what we can project that whatever the copy project assigned to us that is the area wise value is 44:27 44 minutes, 27 seconds almost 13 million square ft. Yeah. So that is the number we have but once we zero down to the exact contract value and all these things then we'll be in 44:34 44 minutes, 34 seconds position to understand what kind of equity margin we are having on these things. Okay. Okay. 44:41 44 minutes, 41 seconds Yeah. Thank thanks for the update. Small clarification these are all EPC projects or real estate projects where you are tying up with them for us it is all EPC budget. 44:51 44 minutes, 51 seconds Okay. Uh so is it safe to assume that the margins actually you know will not be compromised in whatever margins you are making today in the EPC business 45:00 45 minutes that at least should flow in once this orders. 45:05 45 minutes, 5 seconds Yeah I mean see the margin is going to be already we are at a stage where you know we were looking at 13 14 we saying we will come down to 12 and 11 to be a 45:14 45 minutes, 14 seconds bit aggressive this year. Uh so if the margin they expect us to compromise beyond this then the choice is always ours. I don't think we want to be working for free. 45:24 45 minutes, 24 seconds Okay. Okay. And a follow-up question sir is that uh suppose you get a,000 cr order for example hypothetically do you 45:31 45 minutes, 31 seconds have that bandwidth for execution or indirectly uh you know what is the uh annual contracts at full utilization 45:40 45 minutes, 40 seconds that you all can you know generate uh or execute in the side in terms of revenue if you can just help us. Yeah, at this 45:48 45 minutes, 48 seconds point of time, in fact, we are a bit uh plush on the bandwidth part because we had scaled up. We were going to do 1100 last year. Uh you know, we were very 45:57 45 minutes, 57 seconds much uh equipped to do that and then we have underperformed uh for reasons that we've already mentioned. And so going 46:04 46 minutes, 4 seconds forward, we have uh you know our our ability to execute till about 1500 crores at this point of time is not a 46:13 46 minutes, 13 seconds problem at all per year. uh in terms of assets, capeex, senior staff uh we are well equipped to reach those kind of 46:20 46 minutes, 20 seconds numbers. So that is not a challenge as pointed out the reason for uh the lower numbers last year was not not really anything to do with execution capability. 46:29 46 minutes, 29 seconds Right. Right. Right. And last question sir is you know what is the BG limits we have today and and uh to what extent 46:37 46 minutes, 37 seconds actually you know you can fund projects on your own with the BG limits. 46:43 46 minutes, 43 seconds See today we have unutilized BG limit almost 350 core. So 46:51 46 minutes, 51 seconds apart from the BG whatever we total working capital limit is close to 750 C we have now. So out of which almost 300 46:58 46 minutes, 58 seconds C plus BG limit is still unutilized which can easily uh back almost okay good amount of project. 47:10 47 minutes, 10 seconds Thank you that that's it from myself and best of luck. Thank you so much sir. Thank you. 47:14 47 minutes, 14 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Dr. Santo Sundar 47:22 47 minutes, 22 seconds Rajan for closing comments. Thank you and over to you. 47:26 47 minutes, 26 seconds Thanks everyone for joining us today and for your continued support towards Vascon. Uh despite temporary execution challenges during the second half of 47:35 47 minutes, 35 seconds previous year uh it was still an important year for us where we strengthened our liquidity position, our banking relationships and our overall 47:42 47 minutes, 42 seconds foundation with gradual normalization across project sites and a healthy order book in hand and improving execution momentum. We remain confident about the 47:50 47 minutes, 50 seconds opportunities ahead and our ability to deliver sustained long-term growth. Uh thanks for your support. Thanks for the faith in the company and uh I'll see you all again next quarter. 48:00 48 minutes Thank you sir. Thank you members of the management. On behalf of Vascon engineers that concludes this conference. We thank you for joining us and you may now disconnect your lines. 48:09 48 minutes, 9 seconds Thank