Dilip Buildcon (DBL) Q4 20/21 earnings summary

Executive summary

• FY2021 revenue held up despite COVID-19 disruptions and an unusually long monsoon; Q1-Q2 were subdued, with capacity ramping up after the monsoon eased.

• Order book reached ₹274,114 million, up 43.65% YoY, supported by 15 wins worth ₹219,581 million across five sectors.

Financial highlights

• Standalone revenue from operations rose 2.51% YoY to ₹92,089.17 million; PAT fell 23.86% to ₹3,248.86 million.

• Standalone PBDIT before exceptional items declined 6.56% to ₹14,980.93 million; finance costs fell 4.33% to ₹5,861.85 million.

• Consolidated revenue from operations rose 4.56% to ₹101,682.82 million; PAT increased 7.68% to ₹4,365.46 million and EPS rose 7.68% to ₹31.92.

• Consolidated PBDIT before exceptional items increased 3.11% to ₹21,705.84 million; profit after tax including OCI was ₹4,421.39 million, up 8.58%.

• Consolidated results included an exceptional ₹3,212.69 lakh gain on subsidiary stake sales; excluding this item, profit before exceptional items was ₹5,543.25 lakh.

Outlook and guidance

• FY2022 was expected to remain challenging amid COVID-19 variants and uncertainty, while management expressed optimism about growth and planned expansion into new geographies.

• Infrastructure programs were expected to create opportunities, including NHAI’s target to build 4,600 km of highways in FY2022 and planned government investment across roads, irrigation, mining and railways.

• Priorities included converting the order book into revenue, preserving cash, improving efficiency, using digital tools and pursuing projects at desired margins.