Vascon Engineers Limited (NSE: VASCONEQ) Q3 2025 Earnings Call dated Jan. 29, 2025
Corporate Participants:
Akhilesh Gandhi — Business Analyst – Stellar IR Advisors
Santosh Sundararajan — Whole Time Director and Group Chief Executive Officer
Unidentified Speaker
Somnath Biswas — Chief Financial Officer
Analysts:
Madhur Rathi — Analyst
Unidentified Participant
Himanshu Upadhyay — Analyst
Rahul Jain — Analyst
Presentation:
Operator
[Starts Abruptly] please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Akhilesh Gandhi from Stellar IR Advisors. Thank you, and over to you, sir Mr MR. Akhilesh, your line has been unmuted. Please go-ahead.
Akhilesh Gandhi — Business Analyst – Stellar IR Advisors
Hello. Am I audible now?
Operator
Yes, sir.
Akhilesh Gandhi — Business Analyst – Stellar IR Advisors
Good morning, everyone. Hi, Akhilesh Gandhi on behalf of Stellar Investor Relations, welcome you all to Aspon Engineers’ quarter three and nine months FY ’25 earnings conference call. We shall be sharing the key operating and financial highlights for the 3rd-quarter and nine months ended on, 31, 2024. We have with us today the senior management team of Pascon Engineers Limited, Dr Santosh, he is the Group CEO; and Mr Biswal, he is a Chief Financial Officer. Before we begin, I would like to state 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 today. The statements made in today’s call are not a guarantee of future performance and also involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statement to reflect developments that occur after the statement is made. Documents relating to the company’s financial performance, including the investor presentation, have already been uploaded on the stock exchange and the company’s website. I now invite Dr Santosh to state his opening remarks on the company’s performance for the 3rd-quarter and nine months. Then we will open the call, then we will open the floor to Q&A session. Thank you, and over to you, you, sir.
Santosh Sundararajan — Whole Time Director and Group Chief Executive Officer
Good morning, everyone. Welcome you all to the earnings conference call of Vascon Engineers for the 3rd-quarter and nine months ended, 31 December 2024. This has been an exciting effective period for Vascon engineers and have made meaningful strides in our key focus areas of execution, financial discipline and growth. The performance in Q3 FY ’25 showcased our resilience and adaptability in evolving macroeconomic environment with our efforts towards improving operational efficiencies playing a significant growth with pipeline growth. We reported strong revenue growth of 48% year-on-year in Q3 and 37% for nine months FY ’25, driven by robust execution in our engineering, procurement and construction business. The EPC revenue grew by 48% year-on-year to INR274 crore in Q3 FY ’25 and by 37% year-on-year to INR64 crore in nine months FY ’25. The outlook for the EPC segment remains highly promising, supported by a robust order backlog of INR3,179 crores, nearly four times FY 2024 EP revenue. Of this, INR2,715 croress to external EPC projects, while INR464 crore is from internal projects with approximately 78% of the orders coming from government projects. This ensures stable cash flows and facilitate efficient execution timelines. Execution is expected to gather further momentum in the coming quarters, leveraging the healthy order book and sustained operational efficiencies. Now on Real Estate segment, firstly, let me reiterate that the accounting treatment in real-estate timing differences between the recognition of expenses and revenue and therefore, in the light of lower revenue recognized in Q3 and nine months of FY ’25, property has also declined as compared to previous year for the similar period year. However, in terms of our outlook on the segment, it remains favorable. We are excited to announce that our first redevelopment project,, located in Santa Cruz, Mumbai, received rare approval in the second week of January and construction is now underway. We are gearing up to officially launch the product and a significant milestone in our journey. Additionally, the residential and commercialty on be done as other projects are slated for FY 2026. These launches are expected to contribute significantly to revenue in the coming quarters and we remain optimistic about the business progress in the year ahead. Nine months FY ’25, we have seen new sales booking totaling INR47,68, generating a sales value of INR30 crores and a collection of INR39 crores. We remain optimistic about segment supported by strong pipeline of upcoming projects. Another key business are big subject on our subject to GM Technical solutions. Sorry to interrupt, your voice is not very clear, sir. And you might be yes, the bigger divestment of the JMP in the previous quarter. We have received a net sales proceeds of INR110 crore, further strengthening our financial position and enabling us to focus on core business so coming with the financial performance of the company nine months FY ’25, there is consolidated FY numbers, the company reported a total income of —
Operator
Sorry to interrupt, sir, your voice is not very clear. Can I mute and go-ahead
Akhilesh Gandhi — Business Analyst – Stellar IR Advisors
Can you just point to an alternate number?
Santosh Sundararajan — Whole Time Director and Group Chief Executive Officer
I think that then it will be possible signal is getting more overnight right now.
Operator
Yes, sir, I will. I will re-dial you and connect again. 968989 yes, sir, I’ll. I’ll get that in the chat box. Give me a moment ladies and gentlemen, thank you for patiently holding. The management is back on-call. Sir, please go-ahead.
Santosh Sundararajan — Whole Time Director and Group Chief Executive Officer
Good morning, everyone. I hope I’m audible this time. I welcome you all to the earnings conference call of for the 3rd-quarter and nine months ended in December 31, 2024. So it has been an exciting and productive period for as we have made meaningful strides in our key focus areas of execution, financial discipline and growth. The performance in Q3 FY ’25 showcased our resilience and adaptability in an evolving macroeconomic environment with our efforts towards improving operational efficiencies playing a significant role in driving top-line growth. We reported a strong revenue growth of 48% year-on-year in Q3 and 37% in the nine-month period, driven by robust project execution in our engineering, procurement and construction business. The EPC revenue grew by 48% year-on-year to INR274 crore in Q3 FY ’25 and by 37% year-on-year to INR664 crore in nine months FY ’25. The outlook for the EPC segment remains highly promising, supported by a robust order backlog of INR3179 crores, nearly four times the FY 2024 EPC revenue. Of this, INR2715 crore pertains to external EPC projects, while INR466 crore is from internal projects with approximately 78% of the orders coming from government projects. This ensures stable cash flows and facilitate efficient execution timelines. Execution is expected to gather further momentum in the coming quarters, leveraging the healthy order book and sustained operational efficiencies. Thank you. Now on the real-estate segment, firstly, let me reiterate that the accounting treatment real-estate can result in timing differences between the recognition of expenses and revenue and therefore in the light of lower revenue recognized in Q3 and nine months of FY ’25, the profitability has also declined as compared to previous years corresponding period and quarter. However, in terms of our outlook in the segment, it remains favorable. We are excited to announce that our first redevelopment project, Om, located in Santa Cruz, Mumbai received its rare approval in the second week of Jan and construction is underway. We are gearing up to officially launch the project in February, making significant milestones in our journey. Additionally, the residential and commercial project is on-track for launch in April 2025, while other projects are slated for FY 2026. These launches are expected to contribute significantly to revenue in the coming quarters and we remain optimistic about our business prospects in the year ahead. In nine months FY ’25, we achieved new sales booking totaling INR47,658 square feet, generating a sales value of INR30 crore and a total collection of INR39 crores. We remain optimistic about the trajectory of our real-estate segment, supported by a strong pipeline of upcoming projects. Another key business update is on our subsidiary, GMP Technical Solutions. As you might be aware, we have successfully completed the divestment of our subsidiary in the previous quarter. We have received the net sales proceeds of INR110 crores, further strengthening our financial position and enabling us to focus on core business growth. Coming to the financial performance of the company, let me start with the consolidated Q3 FY ’25 numbers. The company reported a total income of INR298 crores as against INR208 crores in the corresponding quarter last year, with a growth of 44% year-on-year. In Q3 FY ’25, the EBITDA stood at INR24 crores as against INR22 crores in the corresponding quarter last year. The EBITDA margin is at 8%. EBITDA margins declined on account of lower contribution from real-estate business, while margins from EPC business remained stable at about 10% to 11%. Profit before exceptional items and tax stood at INR17 crore versus INR16 crores in the corresponding quarter last year. Net profit stood at INR76 crore in Q3 FY ’25, including profit on-sale of GMP as against INR16 crores in Q3 FY ’24. Now moving on to Nine-Month FY ’25 numbers, the company reported a total income of INR698 crores as against INR536 crores for the last year, which is a growth of 30% year-on-year. For nine months FY ’25, the EBITDA stood at INR58 crores as against INR61 crores in the corresponding period last year and the EBITDA margin is at 8%. Net profit stood at INR93 crores in nine months FY ’25, including profit on-sales of GMP as against INR47 crores in the previous year. Overall, we achieved a net-debt reduction from INR164 crores as of June 2024 to INR110 crores as of September 2024 and further INR204 crores as of December 2024, reflecting our commitment to strengthen the balance sheet. This consistent decline highlights our focus on prudential financial management and improving liquidity. But in conclusion, our various initiatives are driving the company’s growth effectively, backed by healthy order book in the EPC segment and upcoming projects in the real-estate segment and a strong balance sheet that reinforces our financial and market position. We are confident about the road ahead and remain committed to leveraging our innovative solution and dedicated team to deliver value and excellence for our stakeholders. With that, we open the floor for question-and-answers.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Madhar Rathi from Countercyclic Investments. Please go-ahead.
Madhur Rathi
Hi, sir, thank you for the opportunity. Sir, I wanted to on the call.
Operator
Sorry to interrupt, Mr Makar. I would request you to please use your handset.
Madhur Rathi
Am I audible right now?
Operator
Sir, your voice is very less
Madhur Rathi
Hello.
Operator
Yes yeah. Sir,
Madhur Rathi
I wanted to understand, sir, the majority of the finance cost that we have will be pertaining to the EPC division. Is that right?
Santosh Sundararajan
No, not really. I mean, we have a CC limit, which is dedicated to the EPC business that is the drawdown is typically in the range of INR60 crores to INR70 crores on an average and the rate of interest on that is about 10%, 10%. So that about INR67 crores is directly to the EPC business annually. And also we would have short-term borrowing sometimes or interest that we might be paying on advances taken from our client on the EPC side, but not more than INR10 crores, INR10 crore crores a year could be financial cost attributable to EPC business. The rest would be towards the real-estate business.
Madhur Rathi
Okay. So like 60% 70% would go to the EPC sector. So my question was, if I look at our PBT basis, we have done around 8% and we have guided that we’ll try to move to 8.5% to 9% by FY ’25 end. So I was trying to understand when can we expect them because in nine months, there hasn’t been much improvement in this 8% to 9%. So if you could just help me understand when can we reach this number?
Unidentified Speaker
So to answer your question, if you look at that opening statement given by Mr Sandors that till nine months, there is no significant revenue and bottom-line came from the real-estate segment. What you are talking about 8% to 8% there is a blended EBITDA. So we are expecting some revenue, but from the very beginning, we kept on talking that this financial year, we are not expecting any significant contribution coming from the real-estate. So a real-estate real-estate obviously having a higher EBITDA. So once that will keep on coming, the EBITDA margin will definitely likely to go up. But still we hope that some more revenue is expected in the Q4 in the real-estate. So it is likely to touch 8.5% to 9% by the end-of-the year.
Madhur Rathi
Okay. My understanding was when I look at our segmental reporting that you have shown in our investor presentation, we’ve done around INR72 crores in the EPC market on the EBIT level and INR14 crores was the finance cost. So I was expecting that INR10 crore would straight away INR10 crore to INR12 crore would be from EPC segment and that’s why the 8% kind of margin. But already we can get that. Also my next question was, there hasn’t been any major order inflow post Q2 FY ’25 where we said that post the re-elections will get aggressive getting order bookings. So on that front, because we have given a very INR1,500,000 crore, INR1,000 crore to INR1,500 crore order booking guidance. So on that front.
Santosh Sundararajan
So out of 100,000 crore what you are targeted, almost we are back more than 50%, more than close to 500 already. We are back this year and almost order already are in the pipeline, which the tender has been submitted. And we are expecting — we are quite hopeful putting our finger across that we will get some more good result in the coming days. So yeah. So we have two more months. We are still very hopeful that another INR500 crores we will be able to easily book in these two months. Worst-case, it might stretch to April, but we are on-track to book more than INR1,000 crores. We have — we are now targeting INR1,000 crores of fresh orders in the next three, four months itself.
Madhur Rathi
Okay. So the INR1,500 crore guidance maybe one or two months here and there, but we’ll get to that INR1,500 crore number for FY.
Unidentified Participant
Yes, yes.
Madhur Rathi
Okay. Got it, got it, sir. Sir, just a final few questions from my side. So real-estate sales have been very low for the second or like the nine months FY ’25 than what we had expected. So why is that? And the second question on real-estate was, so the Mumbai property capex that was going to be incurred with QYP, but I think the QYP has lapsed. So how would we find this Mumbai redevelopment as well as the Power project?
Unidentified Speaker
See, you are right as because already I keep on talking, the real-estate revenue getting recognized only based upon the completion. So this year, we are not expecting any substantial completion as because whatever the project are in the pipeline that is all the way forward. So if you talk about the tower in Karadi and, one towat we are expecting. So that’s why we are hopeful that the blended EBITDA will go up in the Q4. But rest risk will keep on coming from the next year onward. So next year onward will be INR100 crore-plus kind of real-estate and going-forward, it will be more than that quite a bit significant will keep on coming from FY ’26 onwards. In terms of the funding of this project, yes, you are right that initially that Bombai project that goes Santra to the redevelopment and project, we are looking for the funds to be raised through QIP. But since at this market condition, we are not interested with the KIP. So that’s why the fund we — the net process received from GMP has been majorly utilized to mitigate that amount. And whatever the shortfall we are trying to raise interim the funds through some term-loan or something like that, which will be mitigated at an appropriate time, one, it will be very conducive to raise funds to equity mode. But as of now to keep the continuous continued of the project will rest some kind of short-term borrowing will do in-between. But currently, it is majorly mitigated from the sales forces from the G&P.
Madhur Rathi
Okay. Okay, got it. So thank you, I’ll get back-in queue.
Operator
Thank you. The next question is from the line of Himanshu from Rock PMS. Please go-ahead.
Madhur Rathi
Hi, good afternoon. If we look at the debt position as on 31st December, it seems cash accretion has not happened on the — and it remains flattish INR110 crore to INR104 crore net-debt. So the substantial amount of money have — whatever we received, have we invested for the accruals in real-estate, would that be the case?
Santosh Sundararajan
That is not the case as because if you talk about the cash and FDA, which is majorly the FDA is attributable to your bank guarantees margin money. So it is not the — it is a mandatory parking of the funds to get the bank guarantee.
Himanshu Upadhyay
No, I agree to that, but I am saying there has not been substantial accretion. So total cash and bank balance was INR122 crore at the end of September has increased to INR125 crores. So the whatever cash
Santosh Sundararajan
Be in-line with the sale of GMP and the receipt of those funds
Himanshu Upadhyay
Can you repeat?
Santosh Sundararajan
No, we are not. We are not envisaging that our cash margin will keep — the cash, cash will keep on increasing. That is not the case now. So what is the question? Your question what exactly one. Yes, September it was INR122 crore, now it is INR125 crore. What exactly you 104 crore?
Himanshu Upadhyay
Yeah. No, so what I am saying is the cash what we came from GMP around INR100 crores.
Santosh Sundararajan
Yeah, that has not been —
Himanshu Upadhyay
That has not been land. Approval land and everything.
Santosh Sundararajan
No, so that INR100 crores was in the bank during this period, I agree as a landmark in our presentation, deliberately, we have not included that INR100 crores as a cash balance. You will see it in the book. Our net-debt will be seen as INR4 crores in our official P&L balance sheet, but we have not in the presentation, we have deliberately kept that aside because those funds have a specific utilization, which will happen over the next one, two months and already happened in a significant way as of today in terms of what we said in terms of — we’ve given the allocations of those funds earlier as well. We did not want to show that in the presentation because then the net-debt looks like INR4 crores, which is not a real picture, it’s a very short-term picture.
Himanshu Upadhyay
Okay. Okay.
Santosh Sundararajan
So this INR104 crores is without considering the INR100 crores cash balance from GLP.
Himanshu Upadhyay
Okay. Okay. And on real-estate, any developments further? And any timelines for the launches for both the Bombay project
Somnath Biswas
Is already we received the rare for home signer project. So the roundwork is very much on. Is completed, the execution has been started, but we — so we are coming back after a long-time in the. We want to have an appropriate launch. So we are planning, we’ll likely to do anytime in the February, depending upon the right dates and everything. Rates are in-progress. Power is also we are expecting by another two, three months as because of what the EC. EC meeting has been, somehow it has got delayed, which is beyond our control. So once the EC has been done, we’ll go for the data and the process is also expected by another six to nine months and maximum diversion we are looking at. So plus months, two months, we are very much on the track of this project. But one project is definitely getting already officially we are — we started booking, but official launch is likely to happen very soon. But we — since we got that data, everything is done and dusted now.
Himanshu Upadhyay
And any business development plans there or progress what you are seeing in the market? Can you throw some light on both Puna and Bombay in the third market?
Santosh Sundararajan
You are talking about the real-estate or?
Himanshu Upadhyay
Yeah, real-estate.
Santosh Sundararajan
See, real-estate already a couple of projects are in the pipeline. If you look at our presentation already, we are talking three projects in Bombay and two in Pune. So that is very much on the pipelines. We are — our major focus is to get this thing matured ASAP. But at the same time, we are in the different level of discussion with couple of JVs, both in Pune as well as in also because since we are significantly present over there and there is good amount of attraction band is there. So we are exploring some JVs in also. So it is very much on the track. Mumbai, as of now, this see we are primarily focusing and once this is getting launched and flow keeps on coming, there are a couple of proposals there but we’ll — we are exploding and evaluating depending upon the cash-flow situation, all these things.
Himanshu Upadhyay
Okay, okay. Thank you. I’ll jump back-in the queue.
Operator
Thank you. Before we take the next question, a reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Rushab from Cinnovate Finance. Please go-ahead.
Unidentified Participant
Hi, thank you for the opportunity. So my question is on the lines of the order book. So we have an order book of around INR3,200. So just wanted to know the estimated completion timeline for these projects.
Santosh Sundararajan
Three years hello.
Unidentified Participant
Hello, yeah, are you audible.
Santosh Sundararajan
Yeah, three years. Typically you can consider it as on an average three years of extinguishing timeline.
Unidentified Participant
Okay. So what will be the payment structure for these projects.
Santosh Sundararajan
Premium monthly work done bill
Unidentified Participant
Understood. So my second question is on the line of the RERA approval received on the sign-up project. Can you just provide an expected completion timeline and the estimate revenue for these projects?
Santosh Sundararajan
So see, now we’re mixing real-estate and EPC, is a real-estate project for us. And for that, our share of top-line there one second. So is expected share of top-line is around INR270 crores considering today’s sale rate. We have about 70,000 square feet attributable to us. So that will be the top-line. The execution timelines, as I said, the structure will get done in 2.5 years to three years. So yeah, we can consider the next two to three years max as the execution timeline for the project. Mostly two years.
Unidentified Participant
Great. Got it. Thank you so much.
Operator
Thank you. The next question is from the line of Rahul Jain from RJ Investments. Please go-ahead.
Rahul Jain
Hello, sir. Am I audible?
Operator
Yes, sir.
Santosh Sundararajan
Yes.
Rahul Jain
Sir, are you still maintaining the INR1,500 crores order book guidance for FY ’25, given that only 1/4 remains and there were no new order bookings in the Q3.
Santosh Sundararajan
So see, we have two orders which we have not received the paper yet, we haven’t announced officially, but we are — we have current order booking for the year starting from April is around INR500 crores. We still have a INR1,000 crores shortfall on that INR1,500 crore target. But as I mentioned, we are now aggressively in-line to achieve that target. If not by March-end, maybe by April end, we should definitely be achieving the INR1,000 crore target. We have a targeted work. We are filling tenders, a couple of tenders we’ve already filled. We hope to back then. I mean, so we’re still bullish may not be March-end, but maybe April end, but this INR1,500 crores will be booked.
Rahul Jain
Okay. And sir, what is the outlook for is already booked? Okay. And sir, what is the outlook for new EPC orders and how is the billing pipeline shaping up for the next few quarters.
Santosh Sundararajan
Yeah, it looks good. Now that Maharashtra elections are over and things are settled, we are now bullish on orders coming out in Maharashtra also and with stability for the next five years, we are happy to be engaging as much as possible in Maharashtra. It’s easier for us to control projects here. So we are focusing there as well. Having said that, other places, we are also looking out for a couple of projects in Tamil Nadu, we are bullish on a couple in UP and Bihar area also. So things are looking positive for the next year. So once we touch this 1,500 target, then we will take next year’s target is again another 1200 to 1,500 so that for the next three, four years, our 20% EPC growth story can remain intact.
Rahul Jain
Okay, okay. Thank you so much, sir.
Operator
Thank you. The next question is from the line of Jagar Shah from Elevate Research. Please go-ahead.
Unidentified Participant
Yeah. Sir, I have just one question. With the recent management of GMP Technical Solutions and an expected net cash-flow of around INR100 crores. So how do you plan to allocate these funds between your real-estate and EPC division?
Santosh Sundararajan
It is not expected. It is already received and as we convert sometime back that majority of the fund is going to utilize for the project in Mumbai, which is initially planned to be mitigated from the QIP, but since we are not coming with QIP right now, so that GMP sale project majorly utilized to pump in the required capital for three Mumbai projects. And partly about INR415 crores towards PPC as well to hear the call elaborate got it.
Unidentified Participant
Got it, sir. Thank you.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next follow-up question is from the line of Madhar Rathi from Investments. Please go-ahead.
Madhur Rathi
Hi, sir, thank you for the opportunity once again. Sir, I wanted to understand what is the status of our project and it was expected that the GMP proceeds were going to be used for this. So status of that, how do we plan to fund it and what will be the total capex required from our end on this project?
Santosh Sundararajan
See, this is initially planned that GMP sale proceed was supposed to be utilized for the project and it is that point of time when we are aggressively going with the QIP. But since the QYP has — QIP ban has already been dropped, so proceed is majorly utilized for the Mumbai project, which already we convert with you all also. But now one er portion linked also, we are in the process of the approval cycle. So that’s why we talked about that whatever the rest of the fund is required to keep the schedule of this launch and project is intact. So we’ll raise — need to raise some kind of short-term capital intermediately. And when the market will be positive and favorable, then we’ll try to raise some more capital through equity mode and extinguish the short-term debts.
Madhur Rathi
Okay. And what would be the investment from our end on this project?
Santosh Sundararajan
It will not be significant as because Puna is not that capital-intensive as compared to Mombay, but still it will be in the range of INR30 crores INR40 crore kind of investment is as because the project size is almost 1 million square feet.
Madhur Rathi
Yes. So look, I mean, just I couldn’t get the numbers.
Somnath Biswas
30 crores to INR40 crores, 30 crores INR40 crores.
Madhur Rathi
Okay, sir. So we’ll invest INR30 crore to INR40 crores and we will get INR400 crore of expected same value from that. Is it right?
Somnath Biswas
Yes. Yes.
Madhur Rathi
Okay, got it. Got it. And sir, so majorly, I think this will be a commercial project. So it seems that most of the real-estate companies are moving towards a cash-flow kind of a model where the cash-flow from the commercial kind of real-estate sustain their debt books as well as the interest payments. So do we plan to do some kind of that for this project or do you plan to sell it out totally whenever this is launched? And what would be the launch timeline for this?
Santosh Sundararajan
So up until now, has not really head onto commercial assets. Our model has not been to sort of generate regular revenues for the company. I’m aware some of our peers are doing that as a model, but we’ve always felt that if we can encash our amounts and re rotate it into the next project, they’re probably adding more value than sitting on 8%, 9% rent. So but so as of now, we at the Board level, we do not have any big plans or intentions to hold commercial assets, except to the extent that we need as collateral for our EPC business. But having said that, the project will take two, three years to finish. At that point of time, whatever is the best strategy the market offers us, I think we’ll take a call.
Madhur Rathi
And sir, when do we start to start this construction, what would be the — so in the next six months, can we start see this construction started?
Santosh Sundararajan
Next six months, we are not expecting to branch before calendar year 2023.
Madhur Rathi
Okay. So another one year would be minimum before this is starting.
Santosh Sundararajan
At least minimum nine months you can assume. So that’s why I talked about the calendar year. 2025 calendar year
Madhur Rathi
Okay. Got it. Sir, just a final question from my side. Sir, when I look at our real-estate segment, sir, although we are launching new projects that are very attractive based on the margins that double the margin of our margins and the EPC segment. But so when I look at our investor presentation, we have some of our projects from 2018 as well as so that has not been sold. So what gives us confidence that we can sell new project going-forward when like the real-estate — the real-estate boom the cycle has moved on, still we are not able to sell a 2018 projects. So that is the worry that we are.
Santosh Sundararajan
2018, if you talk about 2018 onwards, real-estate or whatever, if you segmental report, real-estate always gives a bigger number. They expect that affordable segment as affordable housing in that. Affordable doesn’t give that kind of margin what normal other project gives. So any other project, if you talk about the forest county, if you talk about the, most of this project having a significant EBITDA margin, but currently, whatever the top-line is coming, it is coming from the B only. So Cardi B is not going to improve the EBITDA or ratio significantly. But the rest of the project, definitely we have at least close to 18% to 2% kind of EBITDA minimum. The real-estate.
Madhur Rathi
Okay, got it. Sir, that is from my side, sir. Just a final suggestion. So when we see insider and director selling their stakeholding in the open-market in a downturns are a very — it gives a negative impression to the investor community that the company — is there something wrong with the company because even at such levels, the company — the directors are selling. So if you could just like make sure that it gets either reflected in their salaries or something else so. So that was a suggestion from our side. So thank you so much and all the best.
Santosh Sundararajan
So I couldn’t, couldn’t get who is what? What is being told.
Madhur Rathi
So the director’s share designated portion as a director shareholding that is sold-in the open markets or it was regarding that. So that gives a very negative impression to the investor community regarding the company.
Santosh Sundararajan
So I mean, I don’t know which specific you’re talking about. I am the only Director on the Board just to sell-in the open-market. And if you take my holding in the company, it has only increased. You’ll understand I am also the CEO and I have access to ESOPs year-on-year that the company awards and these ESOPs, including their tax liabilities have to be purchased by me and paid-for. And so whenever a round of ESOPs is available, I am forced to sell a little bit of my old holding, but I end-up buying more than what I sell. So overall, if you track my holdings, my holding in the company has only increased. And other than me, the other directors either do not have holdings or are not selling. Sorry, holdings are not dropping in the company possible.
Madhur Rathi
Okay, got it. Sir, thank you so much and all the best.
Operator
Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Kanik Shah from AK Services. Please go-ahead.
Unidentified Participant
Yeah, am I audible?
Operator
Yes.
Santosh Sundararajan
Yes.
Unidentified Participant
Yeah. I just wanted to ask that, you know with the six, seven projects currently underway, when are they expected to be launched or completed, what kind of capital requirement are we looking for over here?
Santosh Sundararajan
Yeah. So already we — given that there is a capital requirement still we need — for three project more or less we have settled with the capital from INR20 crore INR30 crores maybe required, which is the shortfall from the QIP vis-a-vis the G&P sale proceed that will raise. And apart from that, the person also, we talked about INR30 crore capital to be required. So all-in all, we required INR70 crores to INR80 crore kind of capital to be raised in coming days depending upon the timeline of the project and completion horizon is depending upon the — once again, that is project-to-project. The both redevelopment projects since it is G, G plus 8, the horizon is 24-month kind of thing, but other project will be 30 to 36 month kind of project. I mean 100% may be something more, little bit more because it is almost 1 million square feet project.
Unidentified Participant
All right. Okay, okay, okay. And looking at what type of real-estate projects are you planning to undertake like will be affordable category or luxury
Santosh Sundararajan
Well not affordable the residential for mid and little bit upper mid segment?
Unidentified Participant
Okay.
Santosh Sundararajan
For commercial.
Unidentified Participant
Okay. And like is there a potential boom in the growth outlook in these segments or do you think the other like luxury projects or have some more scope?
Santosh Sundararajan
No, all that, eventually now it is mostly end-user gain. So there is a significant attraction is happening and sales are happening that — and so at least we are — we are confident even the market it would also suggest that this growth will be continued for at least next four to five years there.
Unidentified Participant
Okay. Okay, okay. And last question that I have is, how do you see the competitive landscape evolving in both in EPC and the real-estate segments, like are there any regulatory issues or market risks that could impact the growth or towards the project completion?
Santosh Sundararajan
No, nothing new. Nothing new as such, nothing is there.
Unidentified Participant
Okay, okay, okay. So there are no risks or that you know regulatory — there are no regulatory issues that can impact the growth.
Santosh Sundararajan
No, no, no regulator
Somnath Biswas
I mean, we are — nothing new that has cropped up. Of course, there are many regulatory issues to do with real-estate launching your project and the timelines that it takes. I would never say there are no risks. The — we’re not getting easy for our second real-estate project yet, then we have to go for. So all of that, but nothing new. These are all known constraints, known risks. And so yeah, nothing to worry about.
Unidentified Participant
All right, all right. Okay. That’s all from my side.
Operator
Thank you. Ladies and gentlemen, you may press star and one to ask a question. A reminder to all the participants that you may press R and one to ask a question. As there are no further questions from the participants, I would now like to hand the conference over to Mr for closing comments.
Somnath Biswas
Once again, we thank all the investor for staying with us and hope we resolve your queries and all these things. If any further queries are there, you can be in touch with either or Mr Jain, who is handling the relationship — Investor Relations team from our. And thank you. Wish you all the best for the coming futures. Hope the market will keep on improving now. Thank you.
Operator
Thank you. On behalf of Vascon Engineers Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.