Dilip Buildcon (DBL) Q4 21/22 earnings summary

Executive summary

• FY22 consolidated revenue fell to ₹95,664.29 million from ₹101,682.82 million; consolidated net loss was ₹5,496.76 million versus profit of ₹4,365.46 million YoY.

• Standalone revenue was ₹90,061.48 million and net loss ₹859.74 million; the year was affected by pandemic disruption, inflation, prolonged monsoons and supply and labour constraints.

• Year-end order book was ₹255,945 million; five new projects worth ₹78,110 million were won across roads, mining and tunnels in five states.

Financial highlights

• Consolidated operating profit before exceptional items fell 62.64% to ₹8,110.02 million; MCO expenses rose 9.66% to ₹82,824.39 million as commodity prices increased.

• Consolidated finance cost declined 9.9% to ₹10,569.62 million as borrowings fell; depreciation and amortisation decreased 9.7% to ₹3,997.71 million.

• Standalone exceptional items included ₹6,137.69 million of gains, mainly from divestments; standalone PBT was a loss of ₹14,894.47 million and PAT a loss of ₹8,597.36 million.

• Consolidated PAT was a loss of ₹54,967.59 million, including ₹5,779.60 million of exceptional losses; EPS was negative ₹37.77 versus ₹31.92 in FY21.

• Consolidated operating cash flow was ₹16,239.67 million; investing inflow was ₹4,453.55 million and financing outflow ₹22,953.18 million.

Outlook and guidance

• Order book of ₹255,945 million provided a pipeline; 40% of unsatisfied performance obligations was expected to be recognized as revenue within one year.

• FY23 EBITDA margin target was 12–13%, versus 8.37% in FY22, supported by higher turnover and lower fixed overheads.

• Strategy prioritized roads, diversification into railways, metros, tunnels, mining and airports, cost controls, deleveraging and digital efficiency.

• The Siarmal MDO contract was valued at ₹3,642 million over 25 years; management expected coal operations to support recurring income and EBITDA.