Nesco


(gardner) #409

thanks to all. keep the questions coming. . . i will collate all. . but like i said PLEASE DIRECT MESSAGE ME and let’s not clutter the page.

regards


(Shiv Kumar) #410

Dear gardner,

IMHO It would be better if you can post the questions you propose to ask on this page itself. That way there won’t be duplication from others attending. In fact we can ask sharper questions.

I am planning to attend like I did in the past years.

shiv kumar


(gardner) #411

Hi. tx for message.
like i said before, to avoid clutter let everyone first send me the questions; thereafter i will collate them an put here in one single post; and all can review and suggest further additions/deletions etc

So let people respond over the weekend, and on Mon / Tue, I shall post all collated questions untill now.

hope its acceptable.


(barathmukhi) #412
  1. What is the status of construction for Reliance’s exhibition center at BKC? How will it impact Nesco’s exhibition business?
  2. Have traffic snarls around the complex impacted business or could impact in the future?
  3. Note # 16 of the 2018 AR shows Security deposits have declined from 72 Crs in 2017 to 12 Crs in 2018. Can management explain what happened here?

(Ayush Mittal) #413

Drop in security deposits seems to have been due to re-classification to current liability:


(Shiv Kumar) #414

what is the accounting treatment on this? obviously, no one will rent out premises without security deposits.


(Prince V) #415

Thanks sir. Current liability meaning it is Expected to be settled in next 12 months. Which means one large tenant’s lease would expire in the next 12 months… probably someone from building 1 & 2 who will be relocated to New building 4 or who might be leaving the premises altogether.


(shikhar mundra) #416

NESCO AR 18 notes
• Sales – 358 cr vs 357 cr ( no growth)
• Sales breakup
Segment Revenue Percentage
Nesco IT Park 145 cr 40 %
Bombany Exhibition Centre 129.7 cr 36 %
Nesco Hosp Pvt Ltd 20.40 cr 5.6%
Indrabator 26.38 cr 7.3%
Income from Investments 36.08 cr 10 %

• Promoter shareholding – 68.18 % (slight increase of 0.011 %)
• PAT = 178.72 cr
• Nesco IT building 3 in Nesco IT Park is a Platinum LEED Certified Green Building
• Nesco IT building 4, which is under construction, is also designed to be a Platinum LEED Certified Green Building ( Dec 2018 completion date expected)
• In FY 2017-18, two of the exhibition halls (Halls 2 and 7) were upgraded to improve energy efficiency. The metal scrap generated as waste was sent to the foundry at Karamsad where it was used as raw material in the furnace.
• We have rain water harvesting at Nesco IT building 3 and at Nesco IT building 4. The rain water collected is going to recharge the ground water and help in maintaining the Green Belt.
• There is almost 20 – 30% reduction in energy use and water use for the offices because of the Green Building features.
• Balance sheet analysis
CWIP = 356 cr vs 262 cr last year
EBITDA = 218 cr vs 214 cr last year
PAT = 178 cr vs 169 cr last year
Dividend payout = 9 % .

so overall flattish year, important to watch out for IT building 4 to be completed in year 4.
Thanks


(gardner) #417

@Shikhar . . . .You may note in the enclosed pic that all the highlight points of the AR (other than the financials) are same as last years AR!


(shikhar mundra) #418

thats true… nothing exciting or different going on in the company. no new insights in the AR.


(gardner) #419

attention all: here are the questions for the AGM, as received from various fellow members here.

UPDATED


(Mridul) #420

Thanks for compiling the list. Regarding my question on building 1 and 2, please check on FSI norms and the impact. It can result in change of course (as the prime reason for demolishing Building 1/2 was that they were occupying large floor area but were generating very low revenue due to earlier FSI norms).


(Kumar Saurabh) #421

I just checked Oberoi results and PSF rates for their commercial buildings. It has not changed. I believe we have commercial space coming from NESCO, Nirlon, Oberoi. So, my expectation is we should expect only volume growth not per unit price growth for next few quarters. Getting a hang of commercial rates in mumbai micro markets might help


(gardner) #422

I do get your reasoning. We can be rest assured that the management is prudent to know all aspects in this regards. Thus I prefer to not extend the questions with the reasoning of FSI; and simply ask them their plans of building 1 & 2, if being demolished, how will it affect revenues, etc. . . . hope its ok with you.


(gardner) #423

Whoever is attending the AGM, would be thankful, if you can DM me your mobile no. please. . . it would indeed be a good idea to connect together when there.

Thanks!


(Shiv Kumar) #424

my questions:

Earlier this year, the Maharashtra government adopted the Mumbai Development Plan 2034 under which additional FSI of 0.5 per cent has been given to commercial buildings and hotels. How will NESCO benefit? Will the proposed hotel benefit and if so how big will the hotel be?

Will IT Building 4 benefit from the higher FSI? If so how many more square feet of the building will be constructed?

shiv kumar


(Vivek) #425

There you have it now CEO has resigned


(Gary) #427

Has anyone enquired into why the # of exhibition has seen such as steep drop. We had talked about it earlier and there were some restrictions imposed by police few months back. I’m not sure if that’s the only factor or is there something more to it. General verbiage around industry woes etc. does not explain this issue.

The concern I have is whether this is a new secular trend of 100 odd exhibitions in a year or can they go back to 150+ like in 2017


(gardner) #430

Hi.

. . .wandering why would you say “steep drop” in exhibition revenues?

. . . the latest March '18 quarter sales of exhibition business at 34.4 Cr. are better than 30.9 Cr. of March '17 . . . and so is the profitability of 27.7 Cr. in March '18, way better than the 18.7 Cr. in March '17

Yes, overall y-o-y its been down -2% (129 Cr in '18 v/s 132 in '17) just as has been overall sales for all segments put together, which one needs to understand if is new normal or an anomaly!

regards


(Aman Goklani) #431

Hey Gary, where did you get the number of 150+ exhibitions in FY17? I went back to review my notes from last years AGM, the company held only 109 exhibitions in FY17.

This is also corroborated in the Chairman’s speech from last year.

2017 Chairman’s speech.pdf (190.9 KB)