Dilip Buildcon Ltd. · NSE:DBL
Dilip Buildcon — Q4 FY2020 Earnings Presentation
58 slides from Dilip Buildcon's earnings presentation, May 29, 2020
Slide 1: Investor Presentation cover letter to exchanges
DILIP BUILDCON LIMITED INFRASTRUCTURE & BEYOND Date: - May 29,2020 To To BSE Limited National Stock Exchange oflndia Ltd. Listing Department Exchange Plaz4C-|, Block G P.J Tower, Dalal Street BandraKurla Complex, Mumbai - 400001 Bandra (E), Mumbai - 400051 Stock Symbol -540047 Stock Symbol _DBL Sub:
Slide 2: Q4FY2020 Earnings Presentation
Q4FY2020 EARNINGS PRESENTATION
Slide 3: Content
CONTENT Standalone Financial Highlights Page No: 03 Consolidated Financial Highlights Page No: 24 Order Book and Project Status Page No: 27 Strategy & Business Model Page No: 42 Company Overview Page No: 45 DILIP BUILDCON LIMITED
Slide 4: Standalone Financial Highlights
Standalone Financial Highlights 3 DILIP BUILDCON LIMITED
Slide 5: Projects Completed in FY20 worth ₹1,05,445 Mn
14 Projects Completed in FY20 worth ₹ 1,05,445 Mn – Committed to deliver • 14 projects completed in a financial year worth Projects Completed Rs. 1,05,445 Mn Madhya Uttar Pradesh Pradesh 17% 16% • Projects completed across 8 states in road and mining sectors • Road projects completed worth Rs. 78,97
Slide 6: New Orders worth ₹67,250 Mn in FY20
New Orders worth ₹ 67,250 Mn in FY20 Sector Wise New Orders Mining • New orders worth Rs. 67,250 Mn won in FY 27% 20 Roads 47% • Projects won across 5 sectors viz. road, mining, airport, special bridge and irrigation, shows diversified business approach Airport 8% • Projects won in 6 states proves g
Slide 7: Commitment to Achievement – Shrem Deal
Commitment to Achievement – Shrem Deal 14 Completed Projects 4 Nearing Completion 6 Under-construction HAM Projects Projects 11 SPVs Stake Transfer COD Achieved in all 4 COD Achieved in all 6 concluded before scheduled time before Schedule time 2 SPVs Stake Trf. in 1 SPV 49% Stake trf 3 SPVs 49% Sta
Slide 8: Projects Sold to Shrem Group
Projects Sold to Shrem Group Particulars Early Completion Days Bonus (₹ mn) Already Completed at 14 Completed Projects the time of deal - 4 Nearing Completion Projects - • Jalpa Devi Tollways Limited 260 Days 658* • DBL Mundargi Harapanahalli Tollways Limited 235 Days 177 • DBL Hassan Periyapatna To
Slide 9: Monetisation of Road Assets – Shrem
Monetisation of Road Assets – Shrem (₹ mn) FY 18-19 FY 19-20 Q1 20-21 S. No. Particulars Total Savings Actual Actual Projected A Amount receivable by DBL (i) Consideration against 18 (14+4) completed assets 8,140 7,000 735 405 - DBL’s upfront equity investment in 6 under construction HAM projects (i
Slide 10: Results Summary – FY20 (Standalone)
Results Summary – FY20 (Standalone) Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) -2% 20,0 00 -3% 91,646 90,151 16,508 16,033 7,639 -44% 16,0 00 12,0 00 4,267 8,00 0 4,00 0 - FY19 FY20 FY19 FY20 FY19 FY20 Contract Revenue Breakup Roads Roads & & Bridge Bridge -3% Roads & Bridge Irrigation 43%
Slide 11: Results Summary – Q4FY20 (Standalone)
Results Summary – Q4FY20 (Standalone) Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) -3% 2,196 8,00 0 25,900 25,093 -47% -10% 4,686 4,222 1,162 4,00 0 - Q4FY19 Q4FY20 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Contract Revenue Breakup Roads Roads & & Bridge Bridge -1% Roads & Bridge Irrigation 100% Roads Urb
Slide 12: Result Update – Standalone
Result Update – Standalone (₹ mn) Particulars Q4FY20 Q3FY20 Q4FY19 Y-o-Y (%) FY20 FY19 Y-o-Y (%) Revenue 25,093 23,891 25,900 -3.12% 90,151 91,646 -1.63% Operating expenses 20,870 19,610 21,214 -1.62% 74,118 75,138 -1.36% EBITDA 4,222 4,281 4,686 -9.89% 16,033 16,508 -2.87% EBITDA Margin (%) 16.83%
Slide 13: Standalone Profit & Loss – FY20
Standalone Profit & Loss – FY20 (₹ mn) Standalone Particulars Highlights FY20 FY19 Revenue from Operations 89,838 91,403 o Revenue decreased by 2% on Y-o-Y Other income 313 243 basis Total Income 90,151 91,646 o PAT decreased by 44% on Y-o-Y basis Expenses on account of increase in Cost of materials
Slide 14: Standalone Profit & Loss – Q4FY20
Standalone Profit & Loss – Q4FY20 (₹ mn) Standalone Particulars Highlights Q4FY20 Q4FY19 Revenue from Operations 24,997 25,787 o Revenue decreased by 3% on Y-o-Y Other income 96 113 basis Total Income 25,093 25,900 o PAT decreased by 47% Y-o-Y basis on Expenses account of increase in depreciation, C
Slide 15: Standalone Balance Sheet
Standalone Balance Sheet (₹ mn) Particulars 31.03.2020 31.12.2019 31.03.2019 ASSETS Non-current assets (a) Property, plant and equipment 20,010 20,107 20,482 (b) Capital work in progress 43 1 - (c) Other Intangible Assets 265 283 341 (d) Financial assets (i) Investments 11,444 9,670 5,238 (ii) Other
Slide 16: Standalone Balance Sheet
Standalone Balance Sheet (₹ mn) Particulars 31.03.2020 31.12.2019 31.03.2019 EQUITY AND LIABILITIES Equity (a) Equity share capital 1,368 1,368 1,368 (b) Other equity 34,692 33,531 30,677 Total Equity 36,060 34,898 32,044 Liabilities Non-current liabilities (a) Financial liabilities (i) Borrowings 7
Slide 17: Standalone Cash flow – FY20
Standalone Cash flow– FY20 (₹ mn) Particulars FY20 FY19 CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax as per Statement of Profit and Loss 5,754 8,050 Adjustments for: Depreciation 4,241 3,202 Interest Income (309) (237) Finance income due to unwinding of security deposit (4) (4) (Profit)
Slide 18: Standalone Cash flow – FY20
Standalone Cash flow– FY20 (₹ mn) Particulars FY20 FY19 CASH FLOW FROM INVESTMENT ACTIVITIES Purchase of Fixed Assets (3,086) (5,711) Sale of Fixed Assets 22 7 Expenditure on Capital work in progress (43) - Purchase of Investments (7,004) (2,908) Sale of Investments 2,093 246 Interest Received 309 2
Slide 19: Working Capital
Working Capital (₹ mn) Particulars Q4FY20 Q3FY20 Q4FY19 Debtors Days 50 63 56 Inventories Days 106 104 100 Total 156 167 156 Less: Creditors Days 66 60 69 Working Capital Days 90 107 87 Inventory Stock 25,797 25,684 23,351 WIP 512 250 1,687 Total 26,309 25,934 25,038 18 DILIP BUILDCON LIMITED
Slide 20: Net Working Capital Days – Quarterly
Net Working Capital Days – Quarterly (₹ mn) 140 127 127 119 120 107 103 92 87 100 96 100 89 85 83 90 80 77 71 72 71 69 69 60 65 66 63 61 62 61 63 59 60 60 55 56 57 55 53 51 48 49 50 40 37 20 119 113 103 102 95 86 91 89 100 104 104 104 106 0 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.0
Slide 21: Net Debt to Equity Ratio – Annually
Net Debt to Equity Ratio – Annually 2.27 1.32 1.13 1.06 0.81 31.03.2016 31.03.2017 31.03.2018 31.03.2019 31.03.2020 Rs. Mn 31.03.2016 31.03.2017 31.03.2018 31.03.2019 31.03.2020 Net Debt 24,068 24,497 27,800 33,876 29,343 Equity 10,621 18,529 24,571 32,044 36,060 20 DILIP BUILDCON LIMITED
Slide 22: Net Debt to Equity Ratio – Annually (Working Capital & Equipment Debt)
Net Debt to Equity Ratio – Annually (Working Capital & Equipment Debt) 1.31 0.96 0.79 0.63 0.58 0.53 2.27 0.50 0.48 0.45 0.36 1.32 1.13 1.06 0.81 31.03.2016 31.03.2017 31.03.2018 31.03.2019 31.03.2020 Net Debt/Equity Equipment Debt/Equity Working Capital Debt/Equity Rs. Mn 31.03.2016 31.03.2017 31.0
Slide 23: Net Debt to Equity Ratio – Quarterly
Net Debt to Equity Ratio – Quarterly 1.35 1.35 1.32 1.30 1.24 1.14 1.16 1.13 1.06 1.01 0.95 0.87 0.81 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 31.12.2018 31.03.2019 30.06.2019 30.09.2019 31.12.2019 31.03.2020 Rs. Mn 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.0
Slide 24: Income Tax
Effective tax rate for FY 2020-21 will be in the range of 30-32%. However, Company does not envisage additional payouts towards tax over and above available MAT credit and TDS MAT credit unutilized as on 31st March 2020 is Rs. 3,533 Mn Income Tax Effective tax rate for FY20 is 26% Company is not opt
Slide 25: Consolidated Financial Highlights
Consolidated Financial Highlights 24 DILIP BUILDCON LIMITED
Slide 26: Consolidated Profit & Loss – FY20
Consolidated Profit & Loss – FY20 (₹ mn) Particulars FY20 FY19 Revenue from Operations 97,249 94,158 Other income 377 473 Total Income 97,626 94,632 Expenses Cost of materials consumed 70,834 72,326 Changes in inventories of finished goods, Stock-in -Trade and work-in-progress 1,176 (326) Employee b
Slide 27: Consolidated Profit & Loss – Q4FY20
Consolidated Profit & Loss – Q4FY20 (₹ mn) Particulars Q4FY20 Q3FY20 Q4FY19 Revenue from Operations 27,297 25,644 25,716 Other income 108 99 182 Total Income 27,405 25,743 25,898 Expenses Cost of materials consumed 20,747 17,554 19,779 Changes in inventories of finished goods, Stock-in -Trade and wo
Slide 28: Order Book and Project Status
Order Book and Project Status 27 DILIP BUILDCON LIMITED
Slide 29: Business Division
Business Division ROADS & URBAN SPECIAL IRRIGATION MINING METRO AIRPORT TUNNEL HIGHWAYS DEVELOPMENT BRIDGES 28 DILIP BUILDCON LIMITED
Slide 30: Total Order Book
Total Order Book (₹ mn) 238,881 211,718 190,816 175,683 107,787 74,747 51,609 FY14 FY15 FY16 FY17 FY18 FY19 FY20 29 DILIP BUILDCON LIMITED
Slide 31: Order Book – Proven diversification
Order Book – Proven diversification (₹ mn) Urban Development Special Metro Tunnel Irrigation Irrigation Special Airport 0.59% Bridge 2.01% 1.45% 0.18% 2.53% Airport Bridge 3.02% 4.69% 0.23% Metro 3.95% Special 2.02% Bridge 3.69% Mining Irrigation 7.45% Mining 7.07% 14.40% Mining Roads Roads Roads 18
Slide 32: Order Book – Sector-wise
Order Book – Sector-wise (₹ mn) 63.94% 121,999 18.56% 35,411 7.07% 13,492 3.95% 3.02% 2.02% 1.45% 7,535 5,759 3,847 2,772 Roads Mining Irrigation Metro Special Bridge Tunnel Airport 31 DILIP BUILDCON LIMITED
Slide 33: Order Book – Client Wise
Order Book – Client Wise (₹ mn) 45.00% 28.99% 15.49% 4.01% 3.02% 3.06% 0.34% NHAI MORTH COAL INDIA GOVT(UNDERTAKING) AAI PUNJAB STATE STATE CORPORATION 68% of the order book from the 32% of the order book from the Central Government state government 32 DILIP BUILDCON LIMITED
Slide 34: Order Book Geography Wise
Rajasthan Chhattisgarh Maharashtra 2.57% 2.91% Odisha 7.18% Karnataka Uttar Pradesh Gujarat Maharashtra 2.99% 14.86% Andhra Pradesh Karnataka Madhya Pradesh Jharkhand 17.10% 9.23% Goa Order Book Telangana Geography Wise 1.46% Telangana Goa Jharkhand 2.38% Gujarat Madhya Pradesh Odisha 15.94% Uttar P
Slide 35: Projects won during FY20
Projects won during FY20 (₹ mn) Contract Value Project Name Type State Name of Employer LOA Date Quarter excluding GST Extra-dosed bridge across Sharavathi Special Karnataka MoRTH 3,215 30.07.2019 Q2 backwaters Bridge Construction of Kharkai Dam at Icha Irrigation Jharkhand Water Resources Departmen
Slide 36: Projects Completed in FY20
Projects Completed in FY20 (₹ mn) Scheduled Date of Actual Early Name of the Type of Cost of Length Project Name State Completion Completion Completion Employer work work (Kms) including EOT Date Days MoRTH Kathipudi-Kakinada Andhra Pradesh EPC 2,511 27.50 28.03.2019 28.03.2019 - NHAI Lucknow-Sultan
Slide 37: Monetisation of Road Assets – Cube Deal
Monetisation of Road Assets – Cube Deal (₹ mn) Entered into Agreement(s) with Cube Highways and Infrastructure III Pte Limited (“Cube”) Singapore for sale of five under construction Hybrid Annuity Model (“HAM”) projects on 31-Aug-2019 for valuation of 1.41x on investment Valuation against Balance 49
Slide 38: Hybrid Road Projects – Progress
Hybrid Road Projects – Progress (₹ mn) Plan as per CA Milestone Achieved Early % of work Appointed Sr. No Project Name Payment Milestone (Grant) Achieved done as on Date Date Days Date Days (Days) 30.04.2020 1 DBL Anandpuram Anakapalli Highways Pvt. Ltd. 3rd PM, 50% Physical Progress 04.01.2019 30.0
Slide 39: Equity commitment for HAM projects
Equity commitment for HAM projects (₹ mn) FY 18-19 FY 19-20 FY 20-21 FY 21-22 Particulars Requirement Actual Actual Projected Projected Investment for 12 HAM projects 15,996 3,893 6,945 3,958 1,200 Investment for 1 new HAM project 620 - - 310 310 Total 16,616 3,893 6,945 4,268 1,510 38 DILIP BUILDCO
Slide 40: Key Outstanding Road EPC Projects
Key Outstanding Road EPC Projects (₹ mn) Outstanding Order Book Schedule Date of Project name Type Contract Value Length (Kms) LOA Date Date of Start as on 31.03.2020 Completion with EOD Seoni–MP/MH Border Road 6,519 2,430 29.29 17.01.2018 Aug-18 Aug-20 Karodi to Telwadi Road 5,045 513 55.61 31.01.2
Slide 41: Airport and Mining Projects
Airport and Mining Projects (₹ mn) Airport Outstanding Order Book as Schedule date of Project name Type Contract Value LOA Date Date of Start on 31.03.2020 Completion Parallel Taxi Track and associated civil & electrical works at Dabolim Airport 1,250 58 May-17 May-17 May-20 Airport Goa Construction
Slide 42: Irrigation and Metro Projects
Irrigation and Metro Projects (₹ mn) Irrigation Contract Outstanding Order Book Schedule date of Project name Type LOA Date Date of Start Value as on 31.03.2020 Completion Navnera Barrage Irrigation 5,366 4,898 Oct-18 Oct-18 Oct-22 Construction of Kharkai Dam at Icha Irrigation 8,664 8,594 Aug-19 Au
Slide 43: Strategy & Business Model
Strategy & Business Model 42 DILIP BUILDCON LIMITED
Slide 44: Strategy
Business Focus o Focus on road EPC for government clients. o Investment in equipment bank, process and control. o Attract and retain talented employees. o Opportunistically divest BOT assets De-Risk business through diversification o Geographical Diversification o Segment Diversification o Adhere to
Slide 45: Execution Strategy
Execution Strategy Differentiated business model with complete control over execution 44 DILIP BUILDCON LIMITED
Slide 46: Company Overview
Company Overview 45 DILIP BUILDCON LIMITED
Slide 47: Pan India Project Execution Capability
(₹ mn) State Completed Ongoing Gross Ongoing Net Andhra Pradesh 29,045 13,750 5,901 Chhattisgarh 7,038 8,368 5,560 Himachal Pradesh Goa - 15,281 4,538 Punjab Gujarat 9,589 5,701 5,701 Haryana Haryana 4,637 - - Rajasthan Uttar Pradesh Himachal Pradesh 1,187 - - Jharkhand 10,071 20,567 17,614 Gujarat
Slide 48: Leadership Team
Leadership Team Mr. Dilip Suryavanshi Mrs. Seema Suryavanshi Mr. Devendra Jain Chairman and MD Executive Director Executive Director & CEO Dilip Suryavanshi is the Chairman and Managing Director of our Company. Seema Suryavanshi is an Executive Director of our Company. She holds a Devendra Jain is a
Slide 49: Execution Team
Mr. R S Garg Mr. Abhishek Shrivastava Mr. Ajay Kumar Mishra Mr. R B Singh Mr. Arun Kumar K Execution Chief Financial Officer Company Secretary President – Contract Management AVP – Mining (Coal) AVP – Design & Technical Audit Team Mr. Mohan Tiwari Mr. Atul Joshi Mr. Nitin Shrivastava Mr. Raja Ghosh
Slide 50: Business Model
Business Model Project Selection and Management Efficient project planning and management Cost-effective Robust contract Project tracking to Clustering for procurement Management minimize delays Careful efficiency & Equipment Equipment tracking selection profitability tracking and and management cri
Slide 51: Backward Integration
Pole blank cutting machine Pipe Rolling Machine 14MTR X 3 MTR Gantry Electric Pole Metal Beam Crash Barrier Bus Shelter Metal Beam Crash Barrier Ø200 X 8 Mm Plazma Bearing & Expansion Joint Foundry Backward Integration 50 DILIP BUILDCON LIMITED
Slide 52: Overview
Diversified areas of expertise No subcontracting, Largest owner of Pan India presence Roads, bridges, buildings, metros, vertically integrated and Construction equipment’s 17 states dams, canals, water supply & use of technology 12,833 mining Largest employer in Best project executors construction i
Slide 53: Awards, Accreditation & Accolades
Dun & Bradstreet award for Construction Highest Upliftment of Bitumen by Indian Single Largest Customer of BKT OTR Tires Fastest Growing Construction Company Infrastructure Development 2019 Oil in 2013 in India in 2015 (Large Category) by Construction World in 2016 Awards, Accreditation & Accolades
Slide 54: Awards, Accreditation & Accolades
Over 200 Great Alliances by Metso Purchase of Volvo Trucks and Commitment for Products and Services by LEED Certification by Indian Green Minerals Construction Equipment in 2016 Ashok Leyland Building Council in 2014 Awards, Accreditation & Accolades Award for Outstanding Contribution in 100th EC 21
Slide 55: Sustainability
Ensuring environmental sustainability, conservation of natural resources, ecological balances, prevention and taken care of Animals Animal Welfare & Wild life sanctuary Promoting healthcare including preventive health care for orphans Education and Orphanage` Sustainability Healthcare Promoting cult
Slide 56: Milestones
Milestones DBL achieves a milestone with INR 51,091 mn in revenue DBL achieves a record in FY16-17, exhibiting topline of INR 77,614 a 25% growth from mn in FY17-18, Incorporated FY15-16. registering a growth of Entered Urban Entered Irrigation 52% from FY16-17 Development Development segment segmen
Slide 57: Investment Rationale
High quality execution from pre-bidding to Execution track record actual construction Strong performance during last 5 years when the economy was bad, demonstrated ability to adapt to Sustainable growth changes in the market to sustain growth and profitability Experienced leadership team supported b
Slide 58: Thank You
Thank You Dilip Buildcon Limited S-ANCIAL GLOBAL SOLUTIONS PVT. LTD. (Investor Relations) Plot No. 5, Inside Govind Narayan Singh Gate, Chuna Bhatti, Ronak Saraf Kolar Road, Bhopal Madhya Pradesh - 462 016 ronak@s-ancial.com 0755 - 4029999 +91 22 4959 5001 0755 - 4029998 db@dilipbuildcon.co.in 215,