Dilip Buildcon Ltd. · NSE:DBL
Dilip Buildcon — Q3 FY2021 Earnings Presentation
45 slides from Dilip Buildcon's earnings presentation, Feb 12, 2021
Slide 1: Dilip Buildcon Limited - Investor Presentation intimation letter
DILIP BUILDCON LIMITED INFRASTRUCTURE & BEYOND Dsac: Februlry 12,2021 To To BSE Limited Nationel $ock Exchange of lndia Ltd. Listing Dcparfilent Exchange Plaze C-|, Block G P.J Tower, Dalal Steet BsndraKurla Comple)q Mumbai - 400001 Bandra (E), Mumbai- 400051 Stock Symbol -DBL Stock Symbol -540047 S
Slide 2: Dilip Buildcon Limited Earnings Presentation Q3 FY2021
Dilip Buildcon Limited Earnings Presentation Q3 FY2021
Slide 3: Table of content
Table of content Industry Overview Consolidated Financial Highlights Page No: 03 Page No: 33 Business Highlights Company Overview Page No: 09 Page No: 35 DBL’s Journey since IPO Page No: 13 Standalone Financial Highlights Page No: 22 2
Slide 4: Industry Overview
Industry Overview Earnings Presentation 3
Slide 5: Current Scenario – Start of Infra Cycle
Current Scenario – Start of Infra Cycle As mentioned by Hnr. Finance Minister, the Infrastructure spending is necessary for the short and medium term economic revival ORDERING 7,597 Kms of national highways In the Rs. 5.35 lakh crore Bharatmala awarded till Jan’21 by MoRTH, to cross Pariyojana, 13,0
Slide 6: Past Trends and its Takeaways
Past Trends and its Takeaways Budget Allocation for Road Ministry (Rs. In Crores) 1,18,101 Tenure -2 1,01,823 • Past trend shows that during the 78,625 78,249 NDA government the Tenure -1 infrastructure spending was 61,000 high during the 2nd, 3rd and the 52,447 4th year 47,107 • We anticipate that
Slide 7: Government Initiatives for Infrastructure Industry
Government Initiatives for Infrastructure Industry To give boost to the infrastructure industry the GoI took the following initiatives complemented by RBI: Relaxed the payment terms as per Schedule H which in turn has improved cash flow for all companies Provided emergency line of Covid-19 loan 1 Re
Slide 8: Union Budget 2021-22: Infrastructure Measures
Union Budget 2021-22: Infrastructure Measures Infrastructure is among one of the six pillars of the Union Budget 2021-22 The Hn. Finance Minister had stated measures in three thrust areas to increase funding for NIP: Enhancing the share of capital Creation of institutional structures Big thrust on m
Slide 9: Union Budget 2021-22: Infrastructure Allocation
Union Budget 2021-22: Infrastructure Allocation o A total of 702 km of conventional metro is operational and another 1,016 km of metro and RRTS is under construction in 27 o Rs. 1.18 lakh crore, highest ever outlay, cities for Ministry of Road Transport and o Rs. 54,581 crore for Housing and Urban H
Slide 10: Business Highlights
Business Highlights Earnings Presentation 9
Slide 11: Highlights
Highlights Won Siarmal Open Completed Byrapura- Cast MDO Project in Challakere road Odisha with a peak project 105 days prior rated capacity of to scheduled 50 MTPA completion date Won Delhi - Vadodara Greenfield Completed Seoni Expressway tunnel MP/MH Border road project in Rajasthan project on tim
Slide 12: Orders won worth ₹1,58,305Mn in FY21 across states & sectors
Orders won worth ₹ 1,58,305Mn* in FY21 across 9 states & 6 sectors with entry into Railways segment Railways Mining Odisha Rajasthan Chattishgarh HAM/BOT 5% 9% Roads 9% 6% 5% Gujarat 33% Tunnel 39% 32% 9% Bihar 12% ₹ 1,58,305 Mn ₹ 1,58,305 Mn ₹ 1,58,305 Mn Special Jharkhand Bridge Karnataka 12% Irri
Slide 13: Business Division
Business Division ₹ 1,14,277 mn ₹ 48,146 mn ₹ 42,162 mn ₹ 3,290 mn 43.72% 18.42% 16.13% 1.26% Total Order Book – ₹ 2,61,410 mn* ROADS & MINING HIGHWAYS IRRIGATION METRO SPECIAL AIRPORT TUNNEL RAILWAYS BRIDGES ₹ 20,377 mn ₹ 4,553 mn ₹ 22,053 mn ₹ 6,550 mn 7.80% 1.74% 8.44% 2.51% * Including Package-2
Slide 14: DBL's Journey since IPO
DBL’s Journey since IPO Earnings Presentation 13
Slide 15: Key Figures
Key Figures Mar’ 2016 Dec’ 2020 ₹ 1,07,787 Mn Order Book ₹ 2,61,410 Mn * ₹ 41,011 Mn Revenue ₹ 90,151 Mn # Employee Strength 19,581 (in numbers) 37,793 Equipment 7,345 (in numbers) 12,903 ₹ 19,415 Mn Gross Block ₹ 40,268 Mn Early Completion ₹ 5,530 Mn ₹ 2,109 Mn Bonus (~95% of the projects completed
Slide 16: Strong Cash flow generation
Strong Cash flow generation (₹ mn) REVENUE GROWTH INVESTMENT MADE Revenue grown ~50,000 Mn Investment through Internal Accruals Net debt only ~5,000 Mn 90,151 11,996, 19,272, 28% 44% 41,011 29,343 24,068 12,144, 28% FY16 FY20 Revenue Net Debt Equity in HAM Working Capital Fixed Assets Company has ma
Slide 17: Holistic Approach
Holistic Approach Qualitative Steps taken: Entire business operation is integrated, run and Two successful transactions of HAM assets with SHREM and Cube Highways respectively and asset analyzed through SAP HANA - ERP It gives accuracy & efficiency which provides strong monetisation of balance 7 HAM
Slide 18: Diversification Strategy
Diversification Strategy Mar’2016 Segmental Diversification (%) Dec’ 2020 * In FY16, DBL used to operate in 4 3% 2% 7% 1% 5% Roads segments and now in FY21 it 8% Roads operates in 8 segments Metro Special Bridge 16% Special Bridge 44% Irrigation Irrigation Mining In FY16, Road used to form the Tunne
Slide 19: Mining Business – Visibility of Long-term Revenue
Mining Business – Visibility of Long-term Revenue DBL ventured into Rs. ~31,500 cr. Contract (annual revenue of Coal Mining Rs. ~1,450 cr. for Business in 2016 with Coal India Limited for overburden removal 25 years at a peak rated capacity of 50 MTPA) Pachwara MDO Siarmal MDO Rs. ~32,100 Cr. Contra
Slide 20: Mining Business – Growth
Mining Business – Growth (₹ mn) *CAGR 90% 9,398 9,682 8,412 5,986 1,399 FY17 FY18 FY19 FY20 9MFY21 (*CAGR for 3 years from FY17 to FY20) Earnings Presentation 19
Slide 21: Divestment of Road Assets
Divestment of Road Assets The Company has 12 HAM Assets which are either committed or at an advance stage of Monetisation FY-21-22 FY-22-23 Expected Divestment Expected Divestment Consideration Company looking for Consideration ~ Rs. 9,000 Mn ~ Rs. 20,000 Mn ~ Rs. 11,000 Mn from Divestment Considera
Slide 22: Way Forward
Way Forward DEBT Revenue Growth Debt Diversified Revenue from Reduction multiple Client/Geography/Sector Long-term INCREASING VALUE OF Focus on Asset partnerships with INVESTORS WITH A FOCUS utilization and Asset investors for Asset ON RETURN ON EQUITY Turnover along with Business selected Capital E
Slide 23: Standalone Financial Highlights
Standalone Financial Highlights Earnings Presentation 22
Slide 24: Results Summary – Q3FY21 (Standalone)
Results Summary – Q3FY21 (Standalone) Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) 3% -4% 1,272 24,727 -13% 8,000 23,891 4,281 4,129 1,110 4,000 - Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Contract Revenue Breakup Roads, Special Metros, Airports & Irrigation Mining Bridges & Tunnels 6% >100%
Slide 25: Results Summary – 9MFY21 (Standalone)
H1FY21 (Standalone) Results Summary – 9MFY21 (Standalone) Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) -3% 11,811 -12% 3,106 65,058 63,078 10,369 -38% 1,919 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 Contract Revenue Breakup Roads, Special Irrigation Metros & Airports Mining Bridges & Tunnels
Slide 26: Result Update – Standalone
Result Update – Standalone (₹ mn) Particulars Q3FY21 Q2FY21 Q3FY20 Y-o-Y (%) 9MFY21 9MFY20 Y-o-Y (%) Revenue 24,727 19,346 23,891 3.50% 63,078 65,058 -3.04% Operating expenses 20,598 16,192 19,610 5.04% 52,709 53,247 -1.01% EBITDA 4,129 3,154 4,281 -3.56% 10,369 11,811 -12.20% EBITDA Margin (%) 16.7
Slide 27: Standalone Profit & Loss – Q3FY21
Standalone Profit & Loss – Q3FY21 (₹ mn) Standalone Particulars Highlights Q3FY21 Q3FY20 Revenue from Operations 24,667 23,810 Other income o Revenue increased by 3.5% on Y-o-Y 59 80 basis Total Income 24,727 23,891 Expenses o PAT decreased by 13 % Y-o-Y basis on account of reduction in EBITDA and C
Slide 28: Standalone Profit & Loss – 9MFY21
Standalone Profit & Loss – 9MFY21 (₹ mn) Standalone Particulars Highlights 9MFY21 9MFY20 Revenue from Operations 62,839 64,841 Other income o Revenue decreased by 3% on Y-o-Y 238 217 Total Income 63,078 65,058 o PAT decreased by 38% Y-o-Y basis on Expenses account of reduction in EBITDA and increase
Slide 29: Standalone Balance Sheet
Standalone Balance Sheet (₹ mn) Particulars Dec’20 Sep’20 Dec’19 Particulars Dec’20 Sep’20 Dec’19 ASSETS EQUITY AND LIABILITIES Non-current assets Equity (a) Property, plant and equipment 18,790 19,201 20,107 (a) Equity share capital 1,368 1,368 1,368 (b) Capital work in progress 12 1 1 (b) Other eq
Slide 30: Standalone Cash flow – 9MFY21
Standalone Cash flow– 9MFY21 (₹ mn) Particulars H1FY21 Q3FY21 9MFY21 Particulars H1FY21 Q3FY21 9MFY21 CASH FLOW FROM OPERATING ACTIVITIES CASH FLOW FROM INVESTMENT ACTIVITIES Net profit before tax as per Statement of Profit and 1,218 1,679 2,897 Purchase of Fixed Assets (1425) (594) (2,019) Loss Adj
Slide 31: Net Working Capital Days – Quarterly
Net Working Capital Days – Quarterly (₹ mn) 140 127 127 119 104 120 114 101 107 103 93 90 87 100 96 100 89 85 83 80 80 77 71 72 71 71 69 69 69 60 65 66 66 63 61 62 61 63 63 59 60 57 60 59 55 56 55 53 51 48 49 50 40 37 20 119 113 103 102 95 86 91 89 100 105 104 104 106 111 113 121 0 31.03.2017 30.06.
Slide 32: Net Debt to Equity Ratio – Quarterly
Net Debt to Equity Ratio – Quarterly (Working Capital & Equipment Debt) 0.87 0.81 0.77 0.63 0.69 0.70 0.58 0.55 0.48 0.53 0.51 0.57 0.48 0.58 0.59 0.47 0.50 0.45 0.46 0.45 0.47 0.46 0.44 0.39 0.35 0.32 0.31 0.36 1.35 1.35 1.24 1.13 1.14 1.16 1.06 1.01 0.95 0.87 0.81 0.92 0.90 0.90 30.09.2017 31.12.2
Slide 33: Income Tax
Income Tax Effective tax rate for FY 2020-21 will be in the Company is not opting for range of 33-35%. However, concessional rate of tax MAT credit unutilized as Company does not Effective tax rate for u/s 115BAA as it will on 31st December 2020 is envisage additional 9MFY 21 is 34% result into high
Slide 34: Consolidated Financial Highlights
Consolidated Financial Highlights Earnings Presentation 33
Slide 35: Consolidated Profit & Loss – Q3/9MFY21
Consolidated Profit & Loss – Q3/9MFY21 (₹ mn) Particulars Q3FY21 Q2FY21 Q3FY20 Y-o-Y (%) 9MFY21 9MFY20 Y-o-Y (%) Revenue from Operations 27,462 21,867 25,644 7.09% 70,328 69,952 0.54% Other income 127 111 99 28.11% 342 269 27.40% Total Income 27,589 21,977 25,743 7.17% 70,670 70,221 0.64% Expenses C
Slide 36: Company Overview
Company Overview Earnings Presentation 35
Slide 37: Overview
Overview No subcontracting, vertically Largest owner of Construction Pan India presence integrated and use of equipment’s 19 states technology 12,903 Diversified areas of expertise Best project executors Largest employer in Roads, bridges, buildings, construction industry ~90% projects metros, dams,
Slide 38: Our Journey
Our Journey After building an enviable reputation for ahead-of-time-execution in its home state, Enters into Tunnels and Metros the Company decides to foray outside for After building roads segments. Revenue grows to more The young firm witnesses a in multiple the first time and goes to Himachal Pra
Slide 39: Pan India Project Execution Capability
Pan India Project Execution Capability (₹ mn) State Completed Ongoing Gross Ongoing Net Andhra Pradesh 29,045 13,750 3,275 Himachal Pradesh Chhattisgarh 7,038 14,677 11,512 Punjab Goa 1,250 14,031 2,596 Uttarakhand Haryana Gujarat 9,589 49,055 46,047 Haryana 4,637 - - Rajasthan Uttar Pradesh Himacha
Slide 40: Backward Integration
Backward Integration Octagonal Poles Pipe Rolling Metal Beam Crash Road Marking Bus Shelter Sign Boards Scaffolding Barrier Paint Bearing & Reinforced Earth Fabricated Casting Overhead Overhead Foundry Expansion Joint Walls Panels and Moulds Gantries Cantilevers To further support our in-house execu
Slide 41: 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 42: Execution Team
Execution Team Mr. R S Garg Mr. Abhishek Shrivastava Mr. Ajay Kumar Mishra Mr. R B Singh Mr. Arun Kumar K Chief Financial Officer Company Secretary President – Contract AVP – Mining (Coal) VP – Design & Technical Management Audit Mr. Mohan Tiwari Mr. Atul Joshi Mr. Nitin Shrivastava Mr. Raja Ghosh M
Slide 43: Awards, Accreditation & Accolades
Awards, Accreditation & Accolades National Highway Excellence CNBC Awaaz CEO awards 2019 for Dun & Bradstreet Construction- Construction World Global Award 2019 3rd National Highway Excellence Award 2020 for Excellence in "Company of the Year" in the Infrastructure Development Awards Fastest Growing
Slide 44: Awards, Accreditation & Accolades
Awards, Accreditation & Accolades Largest Fleet Owner of EC210B Hydraulic Valued Customer of Bitumen Single Largest Customer of Caterpillar GCI Star Achiever by GK TMT in 2014 Road Contractor of the Year by Excavators in India by Volvo in 2015 by BPCL in 2015 in India in 2014 Construction Week in 20
Slide 45: Thank You
Thank You Dilip Buildcon Limited Plot No. 5, Inside Govind Narayan Singh Gate, Chuna S-ANCIAL GLOBAL SOLUTIONS PVT. LTD. Bhatti, Kolar Road, Bhopal Madhya Pradesh - 462 016 (Investor Relations) 0755 - 4029999 215, Shivshakti Industrial Estate, J. R. Boricha Marg, Lower 0755 - 4029998 Parel (E), Mumb