Dilip Buildcon (DBL) Q1 24/25 earnings summary

Executive summary

• Infrastructure sector received an 11.1% budget increase, with major allocations to roads, railways, logistics, and metro rail, supporting long-term growth.

• Secured a ₹9,258 Mn railway project in Haryana and completed four projects totaling ₹36,037 Mn in Q1 FY25.

• Divested 100% equity in 10 HAM projects to Shrem InvIT and 26% equity in 4 HAM projects to Alpha Alternatives, with Alpha investing up to ₹20,000 Mn over 12–18 months.

• Entered a JV with Sterlite for optic fiber projects, bidding for ₹50,000 crore worth of projects.

• The company is diversifying across multiple infrastructure sectors and aims for zero net debt in two years.

Financial highlights

• Standalone revenue from operations declined 9.61% year-over-year to ₹23,579 Mn, with EBITDA down 21.62% and PAT down 43.17%.

• Consolidated revenue grew 7.31% YoY to ₹31,342 Mn, with consolidated PAT surging 1036.59% YoY to ₹1,398 Mn due to exceptional items.

• Standalone EBITDA margin was 11.13%, down from 12.83% YoY; PAT margin at 2.01%.

• Basic EPS for Q1 FY25 was ₹3.24, compared to ₹5.70 in Q1 FY24.

• Roads, bridges, and tunnels revenue dropped 43% year-over-year.

Outlook and guidance

• FY25 revenue is expected to decline by 5% YoY, with EBITDA margins guided at 11–12%.

• Order inflow guidance raised to ₹150–160 Bn for FY25, with a focus on EPC and HAM projects.

• Order book as of June 30, 2024 stands at ₹186,065 Mn, diversified across nine verticals.

• FY26 is expected to be stronger, contingent on order book formation.

• Ongoing focus on monetizing assets through InvITs and strategic partnerships.