Vascon Engineers an integrated EPC and Real Estate player, reported its financial results for the Quarter and Financial Year ended 31st March 2023. For FY23 the consolidated total income at Rs 1031 crs up to 45% YoY. The net profit (inclusive OCI) at Rs 100.02 Crs as against Rs 35.79 Crs up 179% YOY. For Q4 Consolidated Total Income at Rs 336 Crore up by 51% YoY. Net Profit (Incl. OCI) at Rs. 49.63 Crores, up 375% YoY.
Commenting on the Company’s Performance Siddharth Vasudevan Moorthy, Managing Director, Vascon Engineers Ltd said, “We are glad to share our performance for the financial year 2022-23 showing robust growth across all fronts including EPC, Real Estate, and BMS. The principal EPC initiatives are progressing well with a steady enhancement in execution over recent quarters, a trend we foresee will continue in the future and contribute positively to the company's net profit and cash flow. Despite several challenges such as escalated raw material and commodity prices in the construction sector, we have been successful in achieving substantial earnings growth. We are ready for the future with a strong balance sheet, and as we move forward, we remain optimistic about sustaining the momentum as we continue to grow.”
Some of the key developments in FY23 were the reduction in the borrowings continues and as on 31st March 2023, with total gross debt has been reduced by Rs 22.38 crs to Rs. 134.78 Crs from March 2022, while net debt stood at Rs. 11.84 Crores. The company is witnessing smooth progress across all EPC projects with strong execution and momentum. The financial year saw Acuite Rating upgrading its rating for Long Term bank facilities to ‘ACUITE BBB/Stable’, and Short-Term bank facilities to ‘ACUITE A3+/Stable’.
During FY23, there was a significant uptick witnessed in the Real Estate business. New project wins led to a rise in demand that significantly contributed to the overall performance. The Company recorded new sales booking of 1,74,209 Sq.ft. for a total sales value of Rs. 118 Crores. The year saw the company signing its ‘First Redevelopment project in Santacruz, Mumbai’ which will bring in a top line of Rs 249 crores. The company has also launched a new project - Eco Tower, of which 100% is already sold.
As on 31st March 2023, the total EPC Order Book stood at Rs. 2,127 crs which includes external orders of Rs. 1,739 Crs and Internal orders of Rs 388 Crores from our real estate projects. This healthy order book 3.2x FY23 EPC revenues, provides strong revenue growth visibility for the next couple of years. The company is witnessing increase demand in real estate EPC segment.
