Any idea on other income of 22 cr this quarter?
income on investment portfolio most likely.
If not today, we will be facing this situation definitely in the near future
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What is the long term growth option for NESCO? Once it has completed developing its land parcel for office spaces what will the company do?
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CNBC interview (link)
- Rental unchanged, more time given to some tenants to pay the rental
- Expect 270 cr. of rental income in FY21
- Complete process of approvals for the new IT building this year, should start construction next year and will take ~4 years to finish construction
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Wrt your point #1, it implies that there has been no increase in rent and some tenants have not yet paid the rent.
How is it then that the Revenues in this qtr are marginally higher (1.4%) over the last quarter.
Rental unchanged means the existing rentals have not been renegotiated, however the management has provided more time for tennants to pay. Rentals have increased yoy due to more leasing of T4 tower.
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Any idea what " more time" means?
Say overall rent for the year will remain same / will be reduced?
Regards,
Vikas
During interview he has said 2-4 months, i do not believe that they will reduce rent i believe it is more a defferment of the same
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development of the entire complex will take around 15 years. enough visibility for investors to create decent wealth with low risk.
According to Nesco Chairman Sumant Patel, “at least one more hotel” is being planned along with a convention centre in place of two exhibition halls.
This will be in addition to the construction of the new IT Building 2 over the next five years, plans for which were announced at the last Annual General Meeting.
disclosure:holding
Shiv Kumar
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If you see the locations and the relative quality.By quality I mean the asthetics There is distinct segmentation wherin you may get the top level of exhibitions and conventions going to the Jio exhibition centre and the mfg related exhibitions,comicon etc at NESCO.So IMHO,the Jio centre will not make a huge difference as we have enough scope to accomodate 2 players in a city like Mumbai.
Also in case of NESCO,post 2024 ,the exhibition income will only be 10 to 15% of the total revenue.So that way there is diversification to take care of the competition.The management has mentioned that they may explore supplying Food outside.This itself is a huge opportunity wherin they can supply food ie Lunch to corporate offices.Post 2024 we may be looking at a topline of atleast 650 crore.
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Its not SIP but a smart move so that they can take care of the Impact cost.Else the stock would double in no time and the loser will be the buyer.
Hey thanks for reply.
I agree with your point and even I believe that there might be space to accommodate two players in Mumbai.
But there comes another problem for me is company diversifying into two many businesses and I am not sure do they have the competency or not.
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I think you are worrying about the hotel announcement.It is a 4 star hotel.If you look at it -It will accommodate people who come from outstation for the exhibitions.So they have a captive crowd in that sense.Yes the OPM may come down by overall the hotels will be EPS accretive as they expect a revenue of 100 cr as per their AGM presentation. Also the halls may/will/are being used for marriages.That way with the same business they will be exploring many new businesses.The food division is very well equipped to deal with these events and the hotel room occupancy.So As per me- Just like yu saw an EPS explosion this year,similarly you will see this in 2025.Also statistically whenever the mkt cap of a company crosses 10000 crore,you see a lot of interest from FIIs and DIIs and that is when you see the PE shooting up 10 to 15 points.Presently the PE is 15.
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This will definitely change the landscape of real estate. Once leader sets the benchmark, everyone needs to follow only
Not invested
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Discl - not invested. tracking.
4.3% rental savings in operating income leads to 20% gain in profit. This is significant. Also WFH infra cost is less and one time cost.
Not only rental but WFH can save transportation, electricity, telecommunication & F&B and admin staff overheads. It will be interesting to watch TCS margins in this context