Dilip Buildcon (DBL) Q4 16/17 earnings summary

Executive summary

• FY17 consolidated revenue rose 23.69% YoY to Rs 53,191.57 mn; PAT increased 55.67% to Rs 3,576.82 mn, supported by execution and a 62.99% increase in the order book.

• Order inflows reached Rs 113,034.07 mn and the March 31, 2017 order book was Rs 175,682.65 mn, providing multi-year revenue visibility.

• Core strengths included early project delivery, owned equipment and expansion into mining, alongside roads, irrigation and urban development work.

Financial highlights

• Consolidated revenue from operations increased 23.69% YoY to Rs 53,191.57 mn; total income was Rs 53,314.04 mn.

• Consolidated operating profit before tax rose 34.21% to Rs 3,721.27 mn; PAT grew 55.67% to Rs 3,576.82 mn.

• Standalone revenue from operations grew 24.78% to Rs 50,976.24 mn; PBDIT rose 23.15% to Rs 10,036.9 mn and PAT increased 63.47% to Rs 3,609.42 mn.

• Consolidated finance costs rose 6.84% to Rs 5,548.81 mn; average borrowing cost was 11.13% p.a. following refinancing and borrowing-tenor choices.

• FY17 contract revenue included Rs 514.98 mn in early-completion bonuses, compared with Rs 563.84 mn in FY16.

Outlook and guidance

• Strategy prioritizes execution of projects in hand, selective bidding for large projects, revenue growth, lower net working capital and debt, and planned road-asset monetization.

• FY18 national highway construction target was 25,000 km versus 15,000 km bid in FY17; awarding was expected to favor EPC followed by HAM.

• The government’s FY18 highway budget allocation was cited at Rs 64,900 crore; management expected infrastructure-sector optimism and awarding activity to continue.

• Mining order book expanded to Rs 26,117.19 mn from Rs 1,045 mn the prior year; further diversification was being evaluated across infrastructure sectors.