Dilip Buildcon (DBL) Q4 17/18 earnings summary

Executive summary

• FY18 delivered strong growth: standalone revenue rose 51.95% to ₹77,458.77 Mn and consolidated revenue rose 49.22% to ₹79,374.79 Mn.

• Execution capacity included 9,998 vehicles, 32,093 employees, operations across 17 states and an order book of ₹238,881 Mn at March 31, 2018.

• Strategy centers on quality EPC contracts, in-house execution, project clustering, diversification and selective divestment of BOT assets to free capital for EPC growth.

Financial highlights

• Standalone revenue from operations increased 51.95% YoY to ₹77,458.77 Mn; profit after tax was ₹6,203.01 Mn versus ₹3,609.43 Mn in FY17.

• Consolidated revenue from operations increased 49.22% YoY to ₹79,374.79 Mn; PAT rose 61.50% to ₹5,776.44 Mn from ₹3,576.82 Mn.

• Standalone operating profit before tax was ₹6,637.18 Mn versus ₹3,600.67 Mn; consolidated operating profit before tax was ₹6,312.21 Mn versus ₹3,721.27 Mn.

• Consolidated operating profit (PBDIT) grew 29.06% YoY to ₹15,128.89 Mn; standalone PBDIT grew 39.79% to ₹14,031.10 Mn.

• Consolidated EPS was ₹42.23 versus ₹27.56; standalone EPS was ₹45.35 versus ₹27.81.

Outlook and guidance

• Order book of ₹238,881 Mn, up 36% YoY, provides multi-year revenue and margin visibility; bidding emphasis remains on quality, potentially higher-margin projects.

• FY19 outlook was supported by government infrastructure investment and NHAI guidance to award 8,000 km of roads; execution focus remains on timely completion and operational efficiency.

• Strategic priorities include deleveraging, cash-flow generation, cost control, geographic and segment diversification, and selective BOT-asset sales.