Will do revenue of Rs 1400cr in FY12: Vascon Engineers

Vascon Engineers has reported its numbers for the third quarter ended December 2010. Net sales rose 45% from Rs 214.73 crore compared to Rs 148.1 crore in the same period last year. Net profit, however, was down 60% to Rs 5.5 crore compared to Rs 13.74 crore a year ago.

In an interview with CNBC-TV18, R Vasudevan, MD, Vascon Engineers gave his perspective on the quarter gone by and the road ahead. Below is a verbatim transcript. Also watch the accompanying video. Q: If you can take us through what happened in the last quarter and why margins came under pressure? A: Last quarter's margin if you are comparing between 13.76% and 5.39%, the effect of that 13.76% was due to other income which we had recognized during that period in the last year which was amounting to about Rs 10.5 crore. So in effect if you subtract that there has been a jump. This other income happens because of our real estate business bringing in revenues from quarter to quarter. We usually recognize at the time of final handing over or at the time of conveyance a 100% completion method, not a progressive method in real estate. Whereas in the EPC business of ours we follow the A7 principle. So that