Nesco

Stock Opportunities Not-so-Hidden Gems
941

AR23 notes

  • 82% of Tower 03 (vs 80% in FY22) and 97% of Tower 04 (vs 92% in FY22) are occupied
  • Completed upgrading of the landscaping Tower 03 for 3.87 cr.
  • Renters: HSBC, KPMG, PWC, MSCI, BlackRock, Here Solutions, Framestore, Priceline, WeWork, Apollo Global, etc.
  • Had 83 guest exhibitions (vs 12 in FY22) and 10 guest events in BEC (from July 2022 to March 2023)
  • Exhibition Center income was 149.76 cr. (vs 16.18 cr. in FY22)
  • Events: 10 events were held (5 by Nesco and 5 in strategic alliance with clients). Income from events was 6.07 cr.
  • Exhibitions and Banquets section of Nesco Foods did revenues of 36.96 cr. (vs 11.35 cr. in FY22). They catered to 55 social events and 90 corporate events at various Halls located at Nesco premises and 70 events at IT Towers
  • Restaurants and Outlets: 11.67 cr. Inaugurated 3 restaurants a) Foo, b) Smoke House Deli, c) Socials and a Food Court in Tower 04 of Nesco IT Park (6.66 cr. investment). Also launched two new in-house brands Dress Circle and Zuo
  • Company’s liquid resources (fixed maturity plans, mutual funds, cash and bank balances) increased by 37.74% **to 1178.79 cr. (**vs 855.79 cr. in FY22)
  • Expansion plans
    o IT Park: Completed designing & finalization of plans for new Tower 02 which will be in place of legacy IT building 02 and adjoining areas. The designs are made by Singapore Based Architects – Aedas and the total development size will be about 4.6 million sq. ft. Costs will be spread over 5-years (same as last year)
    o Bombay Exhibition Center had completed the designing and finalization of plans for the new Hall 06 (in place of legacy IT Building 01 or Hall 08). The net hall area will be approx. 1,50,000 sq. ft. and will have separate pre-function areas, organizer office, parking for approx. 500 cars, etc. The estimated cost is around 125 cr., with outflow spread across a year and civil work expected to start shortly after approvals from various Governmental Authorities.
  • Indabrator division: Sale of abrasives has shown consistent uptrend, started 3rd shift to achieve installed capacity of 6000 MT/annum. Commissioned high value Blast Cleaning Systems at Railway workshop, Liluah and Plate Preservation Line at Hooghly Cochin Shipyard. Appointed agents in Export region for sale of abrasives and machines. Will be taking big orders in FY24. Looking to outsource job work for casting and production like motors and pumps parts. Will focus on customized heavy fabrication work. Will spend 4 cr. for upgradation
  • CSR spends: 4.41 cr. (vs 4.97 cr. in FY22)
  • Auditor remuneration: 35.34 lakhs (vs 31.27 lakhs in FY22)
  • Employees: 261 (excluding KMP) vs 118 in FY22, managerial remuneration increased by 61.02% (vs 34.75% reduction in FY22), for other employees remuneration increased by 9.5% (vs 2.74% in FY22)
  • Shareholders: 37’631 (vs 36’630 in FY22), price (low): 501.1, price (high): 677.3

Here are the relevant business statistics since FY13.

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY19-23 growth
Total Revenues 162.74 181.42 223.07 297.08 357.20 358.00 392.60 474.28 355.70 382.41 609.26 11.61%
IT Park 27.86 47.83 90.67 124.40 141.91 145.40 137.00 214.17 246.06 264.15 295.03 21.14%
Exhibition centre 90.52 94.89 85.86 111.83 132.77 129.70 156.00 158.60 5.95 16.18 155.83 -0.03%
Hospitality services 5.60 20.40 34.10 35.68 13.00 11.35 48.63 9.28%
Indabrator 25.08 18.39 17.91 27.93 33.89 26.40 32.50 23.27 26.09 45.71 46.52 9.38%
Investments 19.28 20.31 28.62 32.90 42.98 36.10 33.00 42.55 64.60 45.01 63.26 17.67%
KMP remuneration (cr.) 3.60 3.75 5.11 6.06 7.06 7.58 8.02 21.49 13.54 9.06 8.97
Audit fees (lakhs) 7.85 9.55 11.01 11.50 15.60 19.85 21.69 21.68 21.76 31.27 35.34
Employees 121.00 135.00 166.00 131.00 159.00 155.00 130.00 118.00 261.00

Disclosure: Invested (position size here, no transactions in last-30 days)

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