Vascon Engineers Ltd. expects 20% growth in FY24 over last year, according to Managing Director Siddharth Vasudevan. The company has given returns of over 120% in the last six months.
"We will definitely be very close to the Rs 4,000 crore order book. We are quite optimistic about a few of the orders that we bid," said Vasudevan.
Currently, the order book of the company is around Rs 2,400 crore, which comprises 75-77% of government projects. Going forward, the company is predominately bidding for government projects, he said.
However, the company will not be executing many orders this year. In FY24, on a thumb rule basis, Vascon Engineers will execute around 30–35% of the current order book, Vasudevan said.
Expansion Plans
The company also has a presence in real estate projects, and several of them are lined up in Mumbai and Pune. It is also expanding into Coimbatore, the MD said.
Vascon Engineers is planning to divest its GMP Technical Solutions Pvt. business.
"We are growing the company. We have just inaugurated our fourth manufacturing unit. This augments us with topline revenue of approximately Rs 120 crore a year once it is fully operationalised. We will continue to grow it till we get the right investor," said Vasudevan.
"In FY23, GMP Technical Solutions earned almost Rs 250 crore in revenue. This year, it is looking at a growth of 20%," he said.
Bank Guarentees
The company is looking to increase bank guarantee.
"We have tied the Rs 50 crore portion that was untied from Karnataka Bank. In EPC business, the Rs 50 crore tie-up gives us a round opportunity to bid for another Rs 500 crore on this," Vasudevan said.
"Our lead bankers are SBI, and the assessment is due at the end of October or early November. We have asked them to increase our limits by Rs 150 crore, and they seem to be positive about it," he said.
The first quarter is the most challenging for the company due to monsoons. This spills into Q2, with the rains extending. The highest revenue for the company comes in during the third and fourth quarters, Vasudevan said.
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