Dilip Buildcon Ltd. · NSE:DBL
Dilip Buildcon — Q3 FY2020 Earnings Presentation
57 slides from Dilip Buildcon's earnings presentation, Feb 10, 2020
Slide 1: Filing cover letter to BSE and NSE for investor presentation
DILIP BUILDCON LIMITED INFRASTRUCTURE & BEYOND Date: - februarY 10,2020 To To BSE Linrited National Stock Exchange of IndiaLtd. Listing Department Exchange Plaza, C-I, Block G P.J Tower, Dalal Str€et BandraKurla Complex, Mumbai - 400001 Bandra (E), Mumbai - 400051 Stock Symbol -DBL Stock Symbot -540
Slide 2: Earnings Presentation Q3FY2020
EARNINGS P R E S E N TAT I O N BEYOND INFRASTRUCTURE Dilip Buildcon Limited Q3FY2020
Slide 3: Content
CONTENT Standalone Financial Consolidated Financial Order Book and 1 Highlights Page No: 03 2 Highlights Page No: 21 3 Project Status Page No: 24 Strategy & Business Company 4 Model Page No: 41 5 Overview Page No: 44 DILIP BUILDCON LIMITED 2
Slide 4: Standalone Financial Highlights
Standalone Financial Highlights DILIP BUILDCON LIMITED 3
Slide 5: Key Highlights
Won Orders worth Rs. 61,707 Mn during 9M FY20 across sectors i.e. Roads, Mining, o project worth Rs.Special Irrigation, 6,741 Mn received Bridge, from NHAI in the state of Jharkhand on 05.07.2019 Airport Key Won project worth Rs. 8,605 Mn (Bid Project Cost) in Q4 FY20 for road construction of Pathra
Slide 6: Results Summary – Q3FY20 (Standalone)
Results Summary – Q3FY20 (Standalone) Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) -4% 8,00 0 24,926 23,891 2086 -39% -4% 4,461 4,281 1272 4,00 0 - Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Contract Revenue Breakup - -6% >100% 43% -14% DILIP BUILDCON LIMITED Q3FY20 - 20,404 Q3FY20 - 326 Q3FY
Slide 7: Results Summary – 9MFY20 (Standalone)
Results Summary – 9MFY20 (Standalone) Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) -1% 16,0 00 -0.1% 5442 65,746 65,058 -43% 11,822 11,811 12,0 00 3106 8,00 0 4,00 0 - 9MFY19 9MFY20 9MFY19 9MFY20 9MFY19 9MFY20 Contract Revenue Breakup -4% -13% 53% 13% DILIP BUILDCON LIMITED 9MFY20 - 55,787 9
Slide 8: Result Update – Standalone
Result Update – Standalone (₹ mn) Particulars Q3FY20 Q2FY20 Q3FY19 Y-o-Y (%) 9MFY20 9MFY19 Y-o-Y (%) Revenue 23,891 18,167 24,926 -4.16% 65,058 65,746 -1.05% Operating expenses 19,609 14,879 20,465 -4.18% 53,247 53,924 -1.25% EBITDA 4,281 3,288 4,461 -4.03% 11,811 11,822 0.09% EBITDA Margin (%) 17.9
Slide 9: Standalone Profit & Loss – Q3FY20
Standalone Profit & Loss – Q3FY20 (₹ mn) Standalone Particulars Highlights Q3FY20 Q3FY19 Revenue from Operations 23,811 24,889 o Revenue decreased by 4% on Y-o-Y Other income 80 37 basis Total Income 23,891 24,926 o PAT decreased by 39% Y-o-Y basis on Expenses account of increase in depreciation, Co
Slide 10: Standalone Profit & Loss – 9MFY20
Standalone Profit & Loss – 9MFY20 (₹ mn) Standalone Particulars Highlights 9MFY20 9MFY19 Revenue from Operations 64,841 65,615 o Revenue decreased by 1% on Y-o-Y Other income 217 131 basis Total Income 65,058 65,746 o PAT decreased by 43% on Y-o-Y basis Expenses on account of increase in Cost of mat
Slide 11: Standalone Balance Sheet (assets)
Standalone Balance Sheet (₹ mn) Particulars 31.12.2019 30.09.2019 31.12.2018 ASSETS Non-current assets (a) Property, plant and equipment 20,107 20,553 18,505 (b) Capital work in progress 1 1 241 (c) Other Intangible Assets 283 304 22 (d) Financial assets (i) Investments 9,670 9,121 2,873 (ii) Other
Slide 12: Standalone Balance Sheet (equity and liabilities)
Standalone Balance Sheet (₹ mn) Particulars 31.12.2019 30.09.2019 31.12.2018 EQUITY AND LIABILITIES Equity (a) Equity share capital 1,368 1,368 1,368 (b) Other equity 33,531 32,258 28,480 Total Equity 34,898 33,626 29,848 Liabilities Non-current liabilities (a) Financial liabilities (i) Borrowings 8
Slide 13: Standalone Cash flow – Q3/9M FY20 (operating)
Standalone Cash flow– Q3/9M FY20 (₹ mn) Particulars H1FY20 Q3FY20 9MFY20 CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax as per Statement of Profit and Loss 2,304 1,712 4,016 Adjustments for: Depreciation 2,103 1,079 3,182 Interest Income (137) (80) (217) (Profit)/Loss on sale of fixed ass
Slide 14: Standalone Cash flow – Q3/9M FY20 (investing and financing)
Standalone Cash flow– Q3/9M FY20 (₹ mn) Particulars H1FY20 Q3FY20 9MFY20 CASH FLOW FROM INVESTMENT ACTIVITIES Purchase of Fixed Assets (1,499) (625) (2,124) Purchase of Investments (4,011) (770) (4,781) Sale of Investments - 1,978 1,978 Interest Received 137 80 217 NET CASH USED IN INVESTING ACTIVIT
Slide 15: Working Capital
Working Capital (₹ mn) Particulars Q3FY20 Q2FY20 Q3FY19 Debtors Days 63 51 49 Inventories Days 104 104 89 Total 167 155 138 Less: Creditors Days 60 55 55 Working Capital Days 107 100 83 Inventory Stock 25,684 25,028 20,523 WIP 250 1,276 1,689 Total 25,934 26,305 22,212 DILIP BUILDCON LIMITED 14
Slide 16: Net Working Capital Days – Quarterly
Net Working Capital Days – Quarterly 140 127 127 119 120 107 103 100 100 96 92 89 87 85 83 80 77 71 72 71 69 69 60 65 63 61 62 61 63 59 60 60 55 56 57 55 53 51 48 49 40 37 20 DILIP BUILDCON LIMITED 119 113 103 102 95 86 91 89 100 104 104 104 0 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 3
Slide 17: Net Debt trend March to December quarter
Net Debt trend for last 3 years from March to December Quarter 34,749 33,876 30,136 30,481 27,800 24,497 DILIP BUILDCON LIMITED Net Debt Net Debt Net Debt 31.03.2017 31.12.2017 31.03.2018 31.12.2018 31.03.2019 31.12.2019 There has always been an increase in net debt from 31st March to 31st December.
Slide 18: Net Debt to Equity Ratio – Annually
Net Debt to Equity Ratio – Annually 2.27 1.32 1.13 1.06 0.87 31.03.2016 31.03.2017 31.03.2018 31.03.2019 31.12.2019 DILIP BUILDCON LIMITED Rs. Mn 31.03.2016 31.03.2017 31.03.2018 31.03.2019 31.12.2019 Net Debt 24,068 24,497 27,800 33,876 30,481 Equity 10,621 18,529 24,571 32,044 34,898 17
Slide 19: Net Debt to Equity Ratio – 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 0.48 2.27 0.50 0.48 0.39 1.32 1.13 1.06 0.87 31.03.2016 31.03.2017 31.03.2018 31.03.2019 31.12.2019 DILIP BUILDCON LIMITED Net Debt/Equity Equipment Debt/Equity Working Capital Debt/Equity Rs. Mn 31.
Slide 20: 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 DILIP BUILDCON LIMITED 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 Rs. Mn 31.03.2017 30.06.2017 30.09.2017 31.12.20
Slide 21: Income Tax
Effective tax rate for 9MFY20 is 23% MAT credit unutilized as on 31st December 2019 is Rs. 3,808 Mn Income Tax Effective tax rate for FY 2019-20 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 Company is no
Slide 22: Consolidated Financial Highlights
Consolidated Financial Highlights DILIP BUILDCON LIMITED 21
Slide 23: Consolidated Profit & Loss – Q3FY20
Consolidated Profit & Loss – Q3FY20 (₹ mn) Particulars Q3FY20 Q2FY20 Q3FY19 Revenue from Operations 25,644 19,944 25,935 Other income 99 31 61 Total Income 25,743 19,975 25,997 Expenses Cost of materials consumed 17,564 14,830 20,353 Changes in inventories of finished goods, Stock-in -Trade and work
Slide 24: Consolidated Profit & Loss – 9MFY20
Consolidated Profit & Loss – 9MFY20 (₹ mn) Particulars 9MFY20 9MFY19 Revenue from Operations 69,952 68,442 Other income 269 291 Total Income 70,221 68,733 Expenses Cost of materials consumed 50,087 52,547 Changes in inventories of finished goods, Stock-in -Trade and work-in-progress 1,444 (328) Empl
Slide 25: Order Book and Project Status
Order Book and Project Status DILIP BUILDCON LIMITED 24
Slide 26: Business Divisions
ROADS & HIGHWAYS IRRIGATION URBAN DEVELOPMENT MINING Business Division METRO SPECIAL BRIDGES AIRPORT TUNNEL DILIP BUILDCON LIMITED 25
Slide 27: Total Order Book
Total Order Book (₹ mn) Excluding Pathrapali- Kathghora Package II project of amounting Rs. 8,605 Mn (Bid Project Cost) which is 238,881 received in Q4FY20 211,718 212,053 175,683 107,787 74,747 DILIP BUILDCON LIMITED 51,609 FY14 FY15 FY16 FY17 FY18 FY19 Dec'19 26
Slide 28: Order Book – Proven diversification
Order Book – Proven diversification Urban Development Special Metro Tunnel Irrigation Irrigation Special Bridge 2.01% 1.47% Airport 0.18% 0.59% 2.53% Airport Bridge 4.69% 2.72% 0.23% Metro 4.28% Special 1.92% Bridge 3.69% Mining Irrigation 7.45% 6.46% Mining 14.40% DILIP BUILDCON LIMITED Mining Road
Slide 29: Order Book – Sector-wise
Order Book – Sector-wise 63.81% 135,301 19.34% 41,019 DILIP BUILDCON LIMITED 6.46% 13,704 4.28% 1.92% 1.47% 2.72% 9,079 4,064 3,121 5,765 Roads Mining Irrigation Metro Special Bridge Tunnel Airport 28
Slide 30: Order Book – Client Wise
Order Book – Client Wise 45.84% 27.15% 16.59% 4.41% 2.72% 2.76% 0.54% DILIP BUILDCON LIMITED NHAI MORTH COAL INDIA GOVT(UNDERTAKING) AAI PUNJAB STATE CORPORATION STATE 70% of the order book from the Central 30% of the order book from the state Government government 29
Slide 31: Order Book Geography Wise
Odisha Rajasthan Gujrat 7% Maharashtra 2% Maharashtra 3% 16% Karnataka Jharkhand 9% Uttar Pradesh Andhra Pradesh Telangana 4% Madhya Pradesh Order Book Karnataka Goa 18% Geography Wise Goa 3% Telangana Jharkhand DILIP BUILDCON LIMITED Madhya Pradesh Gujrat 16% Odisha Andhra Pradesh Uttar Pradesh Raj
Slide 32: Projects won during 9M FY20
Projects won during 9M 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 Depart
Slide 33: 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 with Completion Completion Employer work work (Kms) EOD Date Days MoRTH Kathipudi-Kakinada Andhra Pradesh EPC 2,511 27.50 28.03.2019 28.03.2019 - NHAI Lucknow-Sultanpur U
Slide 34: Monetisation of Road Assets – Cube Deal
(₹ mn) Monetisation of Road Assets – Cube Deal 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 51% of required equity to be
Slide 35: Monetisation of Road Assets – Shrem
Monetisation of Road Assets – Shrem (₹ mn) FY 18-19 Q1 19-20 Q2 19-20 Q3 19-20 Q4 19-20 S. No. Particulars Total Savings Actual Actual Actual Actual Projected A Amount receivable by DBL (i) Consideration against 18 (14+4) completed assets 8,140 7,000 160 68 507 405 - DBL’s upfront equity investment
Slide 36: Status of under construction divested HAM projects
Status of 2 under construction divested HAM projects (₹ mn) Plan as per CA Milestone Achieved Early % of work Sr. Appointed Project Name Payment Milestone (Grant) Achieved done as on No Date (Days) 31.01.2020 Date Days Date Days 1 Mahagaon Yavatmal 5th PM,90% Physical Progress 28-Feb-18 28-May-20 82
Slide 37: Hybrid Road Projects – Progress
Hybrid Road Projects – Progress (₹ mn) Plan as per CA Milestone Achieved Early % of work Sr. Payment Milestone Appointed Project Name Achieved done as on No (Grant) Date Date Days Date Days (Days) 31.01.2020 2nd PM, 30% Physical 1 DBL Anandpuram Anakapalli Highways Pvt. Ltd. 04.01.2019 05.12.2019 33
Slide 38: Equity commitment for recently won HAM projects
Equity commitment for recently won HAM projects (₹ mn) FY 18-19 Q1 FY 19-20 Q2 FY 19-20 Q3 FY 19-20 Q4 FY 19-20 FY 20-21 Particulars Requirement Actual Actual Actual Actual Projected Projected Investment for 12 new HAM projects 15,996 3,893 1,158 2,700 733 2,192 5,320 DILIP BUILDCON LIMITED 37
Slide 39: Key Outstanding Road EPC Projects
Key Outstanding Road EPC Projects (₹ mn) Schedule Date of Outstanding Order Book Project name Type Contract Value Length (Kms) LOA Date Date of Start Completion with as on 31.12.2019 EOD Seoni–MP/MH Border Road 6,519 3,149 29.29 17.01.2018 Aug-18 Aug-20 Karodi to Telwadi Road 5,045 1,601 55.61 31.01
Slide 40: Airport and Mining Projects
Airport and Mining Projects (₹ mn) Airport Outstanding Order Book Schedule date of Project name Type Contract Value LOA Date Date of Start as on 31.12.2019 Completion Parallel Taxi Track and associated civil & electrical works at Airport 1,250 64 May-17 May-17 Feb-20 Dabolim Airport Goa Construction
Slide 41: 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 31.12.2019 Completion Navnera Barrage Irrigation 5,366 5,040 Oct-18 Oct-18 Oct-22 Construction of Kharkai Dam at Icha Irrigation 8,664 8,664 Aug-19 Au
Slide 42: Strategy & Business Model
Strategy & Business Model DILIP BUILDCON LIMITED 41
Slide 43: Business Focus and 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 44: Execution Strategy
Execution Strategy Differentiated business model with complete control over execution DILIP BUILDCON LIMITED 43
Slide 45: Company Overview
44 Company Overview DILIP BUILDCON LIMITED
Slide 46: Project Execution Capability
State Completed Ongoing Gross Ongoing Net Andhra Pradesh 29,045 13,750 7,714 Chhattisgarh 3,681 6,165 80 Himachal Pradesh Goa - 15,281 5,929 Punjab Gujarat 9,589 5,701 5,701 Haryana Haryana 4,637 - - Rajasthan Uttar Pradesh Himachal Pradesh 1,187 - - Jharkhand 10,071 20,567 18,650 Gujarat Jharkhand
Slide 47: Leadership Team
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 accounts. Mr. Dilip Surya
Slide 48: Management 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 DILIP BUILDCON LIMITED Mr. Mohan Tiwari Mr. Atul Joshi Mr. Nitin Shri
Slide 49: Business Model
Business Model Project Selection and Management Efficient project planning and management Cost-effective procurement Equipment tracking and management for efficiency Robust contract Management Equipment tracking Careful and management for Clustering for selection efficiency efficiency & Project trac
Slide 50: Backward Integration
Pole blank cutting machine Pipe Rolling Machine pto Electric Pole 14MTR X 3 MTR Gantry Ø200 X 8 Mm plazma Backward Metal Beam Crash Bus Shelter Barrier Integration DILIP BUILDCON LIMITED Metal Beam Crash Bearing & Expansion Foundry Barrier Joint 49
Slide 51: Diversified areas of expertise
Diversified areas of expertise Pan India presence Roads, bridges, buildings, metros, dams, 17 states canals, water supply & mining Largest owner of Construction No subcontracting, vertically integrated equipment’s and use of technology 12,251 Largest employer in Best project executors Overview const
Slide 52: 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 Single Largest Customer of Caterpi
Slide 53: 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 Award for Outstanding Contribution in 100th EC 210 Crawler Excavator by Volvo Infra
Slide 54: Sustainability
Sustainability 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 Cultural and social Promoting culture an
Slide 55: Milestones
Milestones DBL achieves a record Business of M/s Dilip Builders along Entered in Tunnels & Metro topline of INR 91,646 mn in 2006 Incorporated 2007 with all assets and liabilities 2019 Segment FY18-19, registering a transferred to the company growth of 18% from FY17-18 DBL achieves a record topline
Slide 56: Investment Rationale
High quality execution from pre-bidding to actual Execution track record construction Strong performance during last 5 years when the Experienced Sustainable growth economy was bad, demonstrated ability to adapt to leadership team changes in the market to sustain growth and profitability supported b
Slide 57: Thank You
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 0755 - 4029999 Parel (E), Mumbai - 400 011 07