Dilip Buildcon Ltd. · NSE:DBL
Dilip Buildcon — Q1 FY2019 Earnings Presentation
51 slides from Dilip Buildcon's earnings presentation, Aug 15, 2018
Slide 1: Dilip Buildcon Limited - Investor Presentation Filing Letter
DILIP BUILDCON LIMITED INFRASTRUCTURE & BEYOND Date: - 15.08.2018 To To BSE Limited National Stock Exchange of India Ltd. Listing Department Exchange Plaza, C-1, Block G P.J Tower, Dalal Street BandraKurla Complex, Mumbai -400001 Bandra (E), Mumbai - 400051 Stock Symbol -540047 Stock Symbol-DBL Sub:
Slide 2: Q1FY19 Earnings Presentation
Q1FY19 Earnings Presentation Dilip Buildcon Limited
Slide 3: Safe Harbour
Dilip Buildcon Limited All statements included or incorporated by reference in this presentation, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our
Slide 4: Table of Content
Dilip Buildcon Limited Table of Content 01 Financial 02 Strategy & 03 Company Highlights Business Model Overview Page : 04 Page : 33 Page : 39 Earnings Presentation | June 2018 3
Slide 5: Financial Highlights
Dilip Buildcon Limited Financial Highlights Earnings Presentation | June 2018 4
Slide 6: Results Summary – Q1FY19
Dilip Buildcon Limited Results Summary – Q1FY19 Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) 47% 24,454 2,555 109% 16,667 46% 4,418 1,222 3,029 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Contract Revenue Breakup (₹ mn) Roads & Bridge Irrigation Urban Development Mining 57% -51% 936% -55% 5% Q
Slide 7: Key Highlights for the quarter
Dilip Buildcon Limited Key Highlights for the quarter • Won Projects Worth Rs. 27,441 Mn (EPC value including GST) • Completed Guna-Biaora Toll project worth Rs. 7,150 Mn, 261 days prior from the scheduled completion date, entitled for early toll collection in the state of Madhya Pradesh • Completed
Slide 8: Result Update - Standalone
Dilip Buildcon Limited Result Update - Standalone (₹ mn) Particulars Q1FY19 Q4FY18 Q1FY18 YoY (%) FY18 FY17 YoY (%) Revenue 24,454 25,620 16,667 46.72% 77,614 51,091 51.91% Operating expenses 20,037 20,853 13,638 46.92% 63,431 41,054 54.51% EBITDA 4,418 4,766 3,029 45.86% 14,183 10,037 41.31% EBITDA
Slide 9: Net Working Capital Days – Quarterly
Dilip Buildcon Limited Net Working Capital Days – Quarterly 160 137 140 127 127 124 131 119 120 119 113 103 102 100 89 85 80 79 77 73 71 72 63 61 62 60 41 95 40 37 86 65 71 59 60 20 0 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 Debtor Days Inventory days Creditor Day
Slide 10: Order Book
Dilip Buildcon Limited Order Book Order Book (₹ mn) 46% DBL’s Own HAM 238,881 * 240,903* 54% EPC 175,683 107,787 74,747 51,609 FY 14 FY 15 FY 16 FY 17 FY18 Q1FY19 *Excluding GST Order Book – By Sector 93% 6.55% 0.54% 0.03% Roads, Highways & Bridges Mining Urban Development Irrigation Earnings Presen
Slide 11: Order Book
Dilip Buildcon Limited Order Book Order Book – By Client Order Book – Geographical Split Odisha, 4% West Bengal, 1% Chhatisgarh, 77% Jharkhand, 3% 0.27% Haryana, 0.16% Punjab, 0.04% Telangana, 5% 8% 4% 2% 7% Goa, 5% Maharashtra, 2% 0.40% 0.14% 31% NHAI MORTH NORTHERN SINGARENI GOVT(UNDERTAKING) AAI
Slide 12: Mining Revenues – Growth Trajectory
Dilip Buildcon Limited Mining Revenues – Growth Trajectory (₹ mn) CAGR 48% 2,450 2,178 2,028 1,927 1,857 709 469 89 132 30.06.2016 30.09.2016 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 Earnings Presentation | June 2018 11
Slide 13: Asset Utilisation
Dilip Buildcon Limited Asset Utilisation 4.71 4.24 3.04 Asset Utilisation 2.89 increased due to 2.21 superior execution and operational excellence 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30.06.2018 Rs. Mn 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30.06.2018 TTM Revenue 26,301 41,011 51,091 77,
Slide 14: Gross Debt to Equity Ratio - Quarterly
Dilip Buildcon Limited Gross Debt to Equity Ratio - Quarterly 1.50 1.43 1.42 Gross Debt to Equity 1.38 1.39 ratio at a healthy position 1.20 1.21 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.3.2018 30.06.2018 Rs. Mn 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06
Slide 15: Gross Debt to Equity Ratio – Yearly
Dilip Buildcon Limited Gross Debt to Equity Ratio – Yearly 2.51 2.37 Gross Debt to Equity ratio is on a downward trend with increase in revenue and will 1.38 continue to improve 1.20 1.21 further 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30.06.2018 Rs. Mn 31.03.2015 31.03.2016 31.03.2017 31.03.201
Slide 16: Revenue vis-à-vis Gross Debt
Dilip Buildcon Limited Revenue vis-à-vis Gross Debt (₹ mn) 85,401 77,614 51,091 41,011 TTM Revenue Gross Debt 26,301 32,914 29,549 25,127 25,634 21,870 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30.06.2018 Gross Debt increased nominally whereas Revenue more than tripled in last four years, which sh
Slide 17: Gross Debt trend for last 3 years from March to June Quarter
Dilip Buildcon Limited Gross Debt trend for last 3 years from March to June Quarter (₹ mn) 32,914 28,242 28,239 29,549 25,127 25,634 Gross Debt Gross Debt Gross Debt 31.03.2016 30.06.2016 31.03.2017 30.06.2017 31.03.2018 30.06.2018 There has been an increase in debt from 31.03.2018 to 30.06.2018 whi
Slide 18: Projects won in Q1FY19
Dilip Buildcon Limited Projects won in Q1FY19 EPC Value Project Name Type State Name of Employer including GST LOA Date (₹ mn) Bellary to Byrapura Section of NH-150A HYBRID Karnataka NHAI 9,940 01.06.2018 Nagpur Mumbai Super Communication Expressway EPC Maharashtra MSRDC 17,501 AWAITED Earnings Pres
Slide 19: Projects won after Q1FY19
Dilip Buildcon Limited Projects won after Q1FY19 Contract Value Name of Project Name Type State L-1 LOA Date Remarks Employer (₹ mn) # Northern Overburden Removal – Jayant OCP Project Singrauli Mining MP Coalfield Limited 7,175 AWAITED (NCL) Punjab State 7 MTPA (Million Power MDO Contract of Pachhwa
Slide 20: Projects Completed in Q1FY19
Dilip Buildcon Limited Projects Completed in Q1FY19 Scheduled Actual Early Type of Cost of work Date of Name of the Employer Project Name State Length (km) Completion Completion work (₹ mn) Completion Date Days with EOD NHAI Guna-Biaora MP Toll 7,150 93.50 06.03.2019 18.06.2018 261 NHAI Sargaon-Bila
Slide 21: Shrem Deal (1/2)
Dilip Buildcon Limited Shrem Deal (1/2) The company has signed a Term Sheet with Chhatwal Group Trust on 24th August, 2017 in respect of divestment of its entire stake in the 24 of its subsidiary companies (SPVs) The sale is for 14 operational projects, and 4 under construction projects & 6 HAM proj
Slide 22: Shrem Deal (2/2)
Dilip Buildcon Limited Shrem Deal (2/2) (₹ mn) FY17-18 FY18-19 Particulars Total Actual Projected Money to be received by Dilip Buildcon Limited from Shrem Group 11,800 5,700 6,100 Direct Investment in SPV’s by Shrem Group 4,220 320 3,900 Total 16,020 6,020 10,000 Earnings Presentation | June 2018 2
Slide 23: Status of 6 under construction HAM projects sold to Shrem Group
Dilip Buildcon Limited Status of 6 under construction HAM projects sold to Shrem Group Plan as per CA Actual Completion Early % of work Payment Milestone Appointed Sr.No Project Achieved done as on (Grant) Date Date Days Date Days (Days) 08.08.2018 3rd PM, 60% Physical 1 Lucknow Sultanpur 08-May-17
Slide 24: Key Outstanding Hybrid Projects – Recently Won
Dilip Buildcon Limited Key Outstanding Hybrid Projects – Recently Won Awarding Total Project Project name Type State COD Length (Kms) Equity Annuity Authority Cost DBL Chandikhole Bhadrak Highways Pvt. Ltd. Hybrid Odisha NHAI AWAITED 74.50 1,212.50 Annuity linked with PI 12,599 DBL Anandpuram Anakap
Slide 25: Equity commitment for recently won HAM projects
Dilip Buildcon Limited Equity commitment for recently won HAM projects (₹ mn) Requirement Mar-19 Mar-20 Mar-21 Investment for 12 new HAM projects 13,210 6,600 3,300 3,300 Less :- Fund Received From Shrem In DBL (6,100) (6,100) - - Net Investment Required By DBL 7,110 500 3,300 3,300 Earnings Present
Slide 26: Status of recently won HAM projects
Dilip Buildcon Limited Status of recently won HAM projects Even though the completion date for financial closure is between September to November, we are on track to achieve financial closure as per our internal target 3 Projects Financial Closure Completed 12 HAM Projects 9 Projects Financial Closu
Slide 27: Key Outstanding EPC Projects
Dilip Buildcon Limited Key Outstanding EPC Projects Schedule Date of Outstanding Order Project name Type Contract Value Length (Kms) LOA Date Date of Start Completion with Book EOD Vijayawada–Machilipatnam Road 7,407.00 1,639.73 64.61 19.01.2016 24.11.2016 23.11.2018 Ghaghra Bridge to Varanasi Road
Slide 28: Irrigation, Urban Development and Mining Projects
Dilip Buildcon Limited Irrigation, Urban Development and Mining Projects Irrigation Outstanding Order Schedule date of Project name Type Contract Value LOA Date Date of Start Book Completion Kundalia Major Multipurpose Irrigation 2 ,700.0 74.54 Apr-15 May-15 May-19 Urban Development Outstanding Orde
Slide 29: Standalone Financial Highlights
Dilip Buildcon Limited Standalone Financial Highlights Earnings Presentation | June 2018 28
Slide 30: Standalone Profit & Loss - Quarterly
Dilip Buildcon Limited Standalone Profit & Loss - Quarterly (₹ mn) Standalone Particulars Highlights Q1FY19 Q1FY18 Revenue from Operations 24,363 16,641 • Revenue increased by 47% Y-o-Y Other income 91 27 Total Income 24,454 16,667 • Reduction in Finance cost from 6.64% Expenses to 4.95% in proporti
Slide 31: Standalone Balance Sheet - Quarterly
Dilip Buildcon Limited Standalone Balance Sheet - Quarterly (₹ mn) Standalone Particulars Q1FY19 Q4FY18 Q1FY18 ASSETS Non-current assets (a) Property, plant and equipment 17,906 18,290 16,755 (b) Other Intangible assets 27 29 37 (c) Intangible assets under development 193 - - (d) Financial assets -
Slide 32: Standalone Balance Sheet - Quarterly
Dilip Buildcon Limited Standalone Balance Sheet - Quarterly (₹ mn) Standalone Particulars Q1FY19 Q4FY18 Q1FY18 EQUITY AND LIABILITIES - - - Equity - - - (a) Equity share capital 1,368 1,368 1,368 (b) Other equity 25,758 23,203 18,383 Total equity 27,125 24,571 19,751 Liabilities - - - Non-current li
Slide 33: Working Capital
Dilip Buildcon Limited Working Capital (₹ mn) Standalone Particulars Q1FY19 Q4FY18 Q1FY18 Debtors Days 59 65 77 Inventories Days 86 95 113 Total 145 160 190 Less: Creditors Days 60 71 72 Working Capital Days 85 89 119 Inventory Stock 19,764 18,894 14,848 WIP 347 1,368 2,959 Total 20,111 20,262 17,80
Slide 34: Strategy & Business Model
Dilip Buildcon Limited Strategy & Business Model Earnings Presentation | June 2018 33
Slide 35: Strategy
Dilip Buildcon Limited 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 Strategy o Seg
Slide 36: Business Model
Dilip Buildcon Limited Business Model Project Selection and Management Project Selection and Management Cost-effective procurement Equipment Equipment tracking and tracking and management management for efficiency for efficiency Efficient Project tracking Robust Careful project Clustering for to min
Slide 37: Backward Integration
Dilip Buildcon Limited Pipe Rolling Machine Electric Pole Bus Shelter pto Ø200 X 8 Mm Pole blank cutting machine Metal Beam Crash Metal Beam Crash 14MTR X 3 MTR Gantry Barrier Barrier plazma Backward Integration Earnings Presentation | June 2018 36
Slide 38: Execution Strategy
Dilip Buildcon Limited Execution Strategy Differentiated business model with complete control over execution Earnings Presentation | June 2018 37
Slide 39: Investment Rationale
Dilip Buildcon Limited Investment Rationale Execution track Sustainable growth Robust order book In-house No dependence on Experienced Process and system record Capabilities sub-contractors leadership team driven company Strong performance Diversification by supported by with high reliance High qual
Slide 40: Company Overview
Dilip Buildcon Limited Company Overview Earnings Presentation | June 2018 39
Slide 41: Overview
Dilip Buildcon Limited Diversified areas of expertise No subcontracting, Pan India presence Roads, bridges, vertically integrated and 17 states buildings, dams, canals, use of technology water supply & mining Largest owner of Construction Largest employer in Best project executors construction indus
Slide 42: Leadership Team
Dilip Buildcon Limited Leadership Team Bharat Singh President Bharat Singh joined Dilip Builders in 1988, prior to which he had a sole proprietorship concern. He has 32 years work of experience in the field of construction. At DBL he is responsible for administration and management of finance and ac
Slide 43: Execution Team
Dilip Buildcon Limited Mr. R S Garg Mr. Raja Ghosh Mr. Abhishek Shrivastav Vice President - Finance Interim CFO Head – CS and Compliance Officer Execution Team Mr. Atul Joshi Mr. Devesh Sharma Mr. Pradeep Harel Associate Vice DGM – Legal GM – Mechanical President – Structure Earnings Presentation |
Slide 44: Execution Team
Dilip Buildcon Limited Mr. P. Marimuthu Mr. Nitesh Kumar Sharma Mr. Badal Chandra Sardar GM – System Admin & Fuel GM – Billing & Planning DGM – Survey & Design Monitoring Execution Team Mr. Nitin Shrivastava Mr. B B Kameshwara Rao Mr. Kamalakanta Mahakul Associate Vice-President – Bidding GM – QA&QC
Slide 45: Milestones
Dilip Buildcon Limited Declared as ‘selected bidder’ for EPC Bought first projects in Andhra Pradesh 1996 stone crusher 2006 Incorporated amounting to ₹7,407 mn from NHAI 2017 2018 Goes public 2016 DBL achieves a milestone DBL achieves a record topline Business of M/s Dilip Builders with INR 51,091
Slide 46: Awards, Accreditation & Accolades
Dilip Buildcon Limited Awards, Accreditation & Accolades Highest Upliftment of Bitumen by Indian Oil in 2013 Single Largest Customer of BKT OTR Tires in India in 2015 Esteemed Customers of Metso NW Series Portable Plants Best Institution Account in India by CEAT Ltd. in H1 2015-2016 Most Valued Cust
Slide 47: Awards, Accreditation & Accolades
Dilip Buildcon Limited Awards, Accreditation & Accolades Commitment for Products and Services by Ashok Leyland LEED Certification by Indian Green Building Council in 2014 Purchase of Volvo Trucks and Construction Equipment in 2016 Fastest Growing Construction Company Infrastructure Person of the Yea
Slide 48: Sustainability
Dilip Buildcon Limited Animal Welfare & Wild life sanctuary Ensuring environmental sustainability, conservation of natural resources, ecological balances, prevention and taken care of Animals Orphanage Promoting healthcare including preventive health care for orphans Sustainability Cultural and soci
Slide 49: Business Division
Dilip Buildcon Limited Business Division Roads & Highways Irrigation Urban Development Mining o State & National Highway o Dams o Water supply projects o Coal Mining o City Roads o Canals & Tunnels o Buildings o Bridges & Culverts o Other Residential o Operation & Maintenance o Operation & Mainten
Slide 50: Pan India Project Execution Capability
Dilip Buildcon Limited State Completed Ongoing Gross Ongoing Net AP 8,616 34,679 20,948 Pan India CG - 9,846 651 GOA - 15,281 11,161 Project Execution Punjab Himachal Pradesh GUJ 9,814 - - Capability Haryana Haryana 60 4,577 388 HP 1,187 - - Rajasthan Uttar Pradesh JHARKHAND 3,330 12,991 7,887 Gujar
Slide 51: Thank You
Dilip Buildcon Limited Plot No. 5, Inside Govind Narayan Singh Gate, Chuna Bhatti, S-ANCIAL GLOBAL SOLUTIONS PVT. LTD. (Investor Relations) Kolar Road, Bhopal Madhya Pradesh - 462 016 215, Shivshakti Industrial Estate, J. R. Boricha Marg, Lower Thank You 0755 - 4029999 Parel (E), Mumbai - 400 011 07