Vascon Engineers Limited — Investor Presentation 2021

Aug 14, 2021

Date: August 14, 2021

To, National Stock Exchange of India Limited, Listing Department, Exchange Plaza, Sandra (E), Mumbai- 400 051

To,

BSE Limited, The Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 001

RefSymbol: VASCONEQ

Ref: Scrip Code: 533156

Dear Sir I Madam,

Subject: Presentation Update

Please find enclosed Investor Presentation by the Company post board meeting.

This is for your information and records.

Thanking you.

~ t?~~gineers Limited

~~Biswas Chief Financial Officer

Enclosures: as above

VASCON ENGIN E ERS LTD.

Registered & Corporate Office: Vascon Weikfield Chambers, Behind Hotel Novotel, Opposite Hyatt Hotel, Pune Nagar Road, Pune Maharashtra, lndia,411014 Tel.: +91 20 3056 2100/200/300, Fax: +91 20 3056 2600, Web: www.vascon.com

CIN:L70100PN1986PLC175750

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INVESTOR PRESENTATION | August 2021

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 real estate & infrastructure 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 market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Strategic Focus… pace-up Execution Momentum

REVENUE FROM OPERATIONS (RS CRS)

• In Q1FY22, execution was impacted on account of 2nd wave of Covid led lockdown restrictions
• Witnessed gradual improvement in execution from June Onwards
• Execution to gather momentum in coming quarters aided by the healthy Order Book

* IMPACT OF NATION-WIDE LOCKDOWN

UNLOCKING MEASURES STARTED UNFOLDING IN PHASED MANNER

^IMPACT OF LOCALIZED LOCKDOWN DURING SECOND WAVE OF COVID-19 4

Strengthening the Balance Sheet

Particular (Rsin Crs)	Jun-21	Mar-21	Mar-20
Vascon Engineers
SBI & UBI	69.81	58.76	66.48
Kotak RE Fund	64.02	70.69	103.83
JM Finance	24.74	24.74	17.62
ICICI HFC	8.27	8.54	9.51
Zero Coupon-NCD	1.64	13.64	13.64
Others	23.37	21.14	25.26
Total	191.85	197.5	236.33
GMP	18.29	16.58	18.99
Total Debt	210.13	214.08	255.32
Cash & Bank Bal	10.42	22.66	22.29
FD	62.00	57.37	46.51
Total Cash & Bank Balance	72.42	80.03	68.8
Net Debt	137.71	134.06	186.53

TOTAL DEBT REPAYMENT OF RS. 45.19 CRS IN LAST 15 MONTHS, DESPITE CHALLENGING

TIMES

Raising Rs. 70 Crs. via Preferential Issue

Amount toRaise	Rs. 70 crores•
Key Investors	•Group of Investors
Utilization of Funds	•Repayment of High Cost bearing Debt•Financing ofIncremental Working Capital Requirements

THE COMPANY TO RAISE RS. 70 CRORES THROUGH PREFERENTIAL ISSUE FOR DEBT REPAYMENT AND WORKING CAPITAL REQUIREMENT

Charting towards higher Growth Trajectory

WITH ROBUST ORDER BOOK AND INCREASED CAPACITY UTILIZATION, PROFITABILITY TO IMPROVE.. RESULTING IN BALANCE SHEET STRENGTHENING

P&L Highlights- Q1 FY22

		Standalone		Consolidated
Particulars (Rs. Crs)	Q1 FY22	Q1 FY21	FY21	Q1 FY22	Q1 FY21	FY21
Revenue	75.06	32.34	357.23	110.87	42.77	505.77
Other Income	3.16	3.19	11.23	3.40	2.57	12.41
Total Income	78.22	35.53	368.46	114.27	45.34	518.18
Construction Expenses / MaterialConsumed	62.17	29.04	308.58	85.46	35.4	402.49
Employee Cost#	13.28	9.08	33.9	21.02	15.12	58.57
Other Expenses	2.94	17.69	31.12	5.82	21.5	58.11
EBITDA	(0.17)	(20.28)	(5.14)	1.97	(26.68)	(0.99)
EBIDTA Margin (%)	0%	-57%	-1%	2%	-59%	0%
Depreciation	1.16	1.81	7.22	2.48	3.01	12.08
Finance Costs	5.92	6.85	24.51	6.36	7.65	26.8
Profit Before Tax	(7.18)	(28.94)	(36.87)	(6.87)	(37.34)	(39.87)
Tax	-	-	-	0.16	-	0.41
Profit After Tax	(7.18)	(28.94)	(36.87)	(7.03)	(37.34)	(40.28)
Other Comprehensive Income	0.65	(0.37)	(1.11)	0.65	(0.37)	(0.47)
Total Comprehensive Income	(6.53)	(29.31)	(37.98)	(6.38)	(37.71)	(40.75)

Q1FY22- Segmental Profit & Loss - after allocation

Particulars (Rs. Cr)	RE#	EPC##	GMP	Inventorised	Total
Revenue	0.62	81.49	36.13		118.24
Cost of Sales	0.18	67.42	23.36	1.1	92.06
Gross Profit	0.44	14.07	12.77		26.18
Gross Profit Margin %	71%	17%	35%		22%
Other Income	0.19	2.55	0.45		3.19
Employee Cost	4.53	8.75	7.74		21.02
Other Expenses	1.11	2.22	3.03		6.36
EBITDA	(5.01)	5.65	2.45		1.99
EBIDTA Margin (%)	-	7%	7%		2%
Depreciation	0.05	1.16	1.28		2.49
EBIT	(5.06)	4.49	1.17		(0.50)
EBIT Margin (%)	-	6%	3%		-
Finance Costs					6.36
Profit Before Tax					(6.86)
Tax					0.17
Profit After Tax	-	-	-		(7.03)

# IT INCLUDES REVENUE & EXPENSES RELATED TO AJANTA ENTERPRISE & PHOENIX VENTURES, IN FINANCIALS SHARE OF PROFIT IS TAKEN (AS PER IND AS ) ## IT INCLUDES INTERNAL EPC ORDER REVENUE AND CONSTRUCTION EXPENSES

VASCON – At a Glace

ENGINEERING PROCUREMENT & CONSTRUCTION

One of the leading EPC Company in India

REAL ESTATE DEVELOPMENT

Focus on Mid-Range Housing Project

EPC Business- Overview

• Construction Experience across various verticals
  • Executed over 200 projects with construction area of over 50 msft
• Ability to execute around 8 msft per annum
  • Currently executing around 3 msft p.a. operating at 40% utilization
  • Number of Personnel in Project / Engineering team 490
• Higher margins Because of Turnkey Capabilities
  • In-house Design and Engineering team
  • Ability to demand premium over other construction companies

New Orders Target

• Focus on large and high value civil contracts by Government Agencies and reputed Private Companies
• Generate positive cash flows from all the projects and re-invest to drive growth

Marquee Clients

MAINTAINING CONSISTENT QUALITY STANDARDS ENSURING REPEAT ORDERS

Order Book Build-Up & Key Orders

EXECUTION OF NEW ORDERS TO IMPROVE REVENUE VISIBILITY & CAPACITY UTILISATION

Real Estate Business

BRAND EQUITY

Landmark developments (Windermere, Forest County and Willows) have established the Brand Vascon in Pune Market

END-TO-END CAPABILITIES

In-house Design and Construction team gives us a unique advantage over other Real Estate Developers

LOW OPERATING COST

Flat organization structure with agile decision reduces operating cost

ASSET LIGHT MODEL

JV and JDA with land owners with low upfront deposit

Successfully launched Real estate projects

	Vascon	Dev. Area(msft)	Launch		REAL	ESTATESALES(RSCR)
Projects	Share			Status
Forest Edge (JV) A	50%	0.08	18-Jan	Fully Sold	116	120
Forest Edge (JV) B	50%	0.08	19-Sep	95% sold
Windermere (JV)#	45%	0.38	18-Mar	74% sold
Vascon Goodlife –Value Home(Own)	100%	0.3	18-May	63% sold
Forest County	50%	0.18	18-Dec	99% sold			11
XotechC (JV)	50%	0.04	18-Oct	Fully Sold
#Relaunch					FY20	FY21	Q1FY22

Track record of Real Estate Sales

Current Real Estate Projects Under Development

		Location Vascon Share		Total				Vascon Share
Project Name				ProjectArea	AreaSold	SaleValue	Collection	SaleValue	Collection	Rev.Recognized
		Type	Share	msft	msft	Rs. Cr	Rs. Cr	Rs. Cr	Rs. Cr	Rs. Cr
Forest Edge (A&B)	Pune	JV	50%	0.16	0.15	108	71	54	35	-
Forest County	Pune	JV	50%	0.18	0.17	131	52	65	26	-
WindmereResidential	Pune	JDA	45%	0.38	0.29	340	289	168	130	168
VasconGoodLife	Talegaon	Own	100%	0.46	0.18	65	37	65	37	-
Xotech(I&II)	Hinjewadi	JV	50%	0.08	0.08	37	37	19	19	19
Total				1.26	0.87	681	486	371	247	187

Real Estate Projects – Pipeline (launches in Near-term)

Sr. No.	Projects	Type	Segment	Total		Vascon Share
				SaleableArea	ExpectedSales Value	SaleableArea	ExpectedSales Value
				msft	(Rs. in Cr)	msft	(Rs. in Cr)
1	Coimbatore	JDA	Residential	0.3	195	0.21	136
2	Madurai	JDA	Residential	0.49	220	0.37	165
3	4 Acre HDH	JV	Residential	0.6	460	0.3	230
	Total			1.39	875	0.88	531

Real Estate Projects – Pipeline (other projects)

Sr. No.	Projects	Type	Segment		Total
				SaleableArea	ExpectedSales Value
				msft	(Rs. in Cr)
1	Willows –Residential	JV	Residential	0.33	250
2	KalyaniNagar -Comm	JDA	Commercial	0.3	330
3	KalyaniNagar	JDA	Residential	0.5	550
	Total			1.13	1,130

Continuous focus on Liquidity Management

IDENTIFIED NON-CORE ASSETS FOR SALE

• RAISING RS 70 CR THROUGH PREFERENTIAL ISSUE
• 44% EQUITY STAKE IN HOTELS AT GOA
• COMMERCIAL PROPERTY AT KALEDONIA, ANDHERI (E)
• 9 ACRE LAND PARCEL IN AURANGABAD

• GMP TECHNICAL SOLUTIONS (85% SUBSIDIARY OF VASCON CONTINUE FOCUS ON GENERATING CASH BY MONETIZING IDENTIFIED NON CORE ASSETS

THANK YOU!

Mr. Punit Bhayani punit@vascon.com

Vascon Weikfield Chambers, Pune - 411014

Mr. Gaurang Vasani/ Ms. Hina Agarwal vgaurang@stellar-ir.com hina@stellar-ir.com

Kanakia Wall Street, Andheri (East), Mumbai 400 093