Slide 1: Dilip Buildcon Limited – Investor Presentation filing letter
DILIPBUILDCONLIMMED INFRASTRUCTURE & BEYOND Dstc: - Fcbrurry 08,2019 To To BSE Limited Nariona.l Stock Exchange of India Ltd Listiry Departrnent Exchange Plaz4 C- I , Block G P.J Torrer, Dalal Street BandraKurla Complo<, Mumbai - 400001 Bandra (E), Mumbai - 400051 Stock Symbol -540047 Stock Svmbol -
Slide 2: Q3 FY19 Earnings Presentation
Q3 FY19 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 : 42 Page : 48 Earnings Presentation | December 2018 3
Slide 5: Financial Highlights
Dilip Buildcon Limited Financial Highlights Earnings Presentation | December 2018 4
Slide 6: Key Highlights (1/2)
Key Highlights (1/2) • Received National Highways Award for Excellence, 2018 from MoRTH for Excellence in Construction Management for Guna-Biaora road project • Received final sanction of financial closure for 11 projects and In-principle sanction received for 1 project out of 12 HAM projects. Docum
Slide 7: Key Highlights (2/2)
Key Highlights (2/2) • SAP has been implemented in following areas: • Inventory Management • Procurement • Plant Production • Equipment and Tools Management • Human Resource • Project System • Finance & Accounts • SAP implementation will lead to operational excellence as under: • Real time Project M
Slide 8: Results Summary – Q3FY19
Dilip Buildcon Limited Results Summary – Q3FY19 Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) 28% 26% 2,086 24,926 27% 1,650 19,478 4,461 3,504 Q3FY18 Q3FY19 Q3FY18 Q3FY19 Q3FY18 Q3FY19 Contract Revenue Breakup (₹ mn) Roads & Bridge Irrigation Urban Development Mining 29% 1374% 30% -100% -55%
Slide 9: Results Summary – 9MFY19
Dilip Buildcon Limited Results Summary – 9MFY19 Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) 26% 35% 5,442 65,746 26% 51,994 11,822 4,029 9,417 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 Contract Revenue Breakup (₹ mn) Roads & Bridge Irrigation Urban Development Mining 30% 1100% 12% -71% -55%
Slide 10: Result Update - Standalone
Dilip Buildcon Limited Result Update - Standalone (₹ mn) Particulars Q3FY19 Q2FY19 Q3FY18 YoY (%) 9MFY19 9MFY18 YoY (%) Revenue 24,926 16,365 19,478 27.97% 65,746 51,994 26.45% Operating expenses 20,465 13,422 15,974 28.11% 53,924 42,578 26.65% EBITDA 4,461 2,943 3,503 27.33% 11,822 9,417 25.54% EBI
Slide 11: Standalone Profit & Loss - Quarterly
Dilip Buildcon Limited Standalone Profit & Loss - Quarterly (₹ mn) Standalone Particulars Highlights Q3FY19 Q3FY18 Revenue from Operations 24,872 19,421 • Revenue increased by 28% Y-o-Y Other income 54 56 Total Income 24,926 19,478 • Reduction in Finance cost from 6.00% Expenses to 5.79% in proporti
Slide 12: Standalone Profit & Loss – Nine Monthly
Dilip Buildcon Limited Standalone Profit & Loss – Nine Monthly (₹ mn) Standalone Particulars Highlights 9MFY19 9MFY18 Revenue from Operations 65,473 51,880 • Revenue increased by 26% Y-o-Y Other income 273 114 Total Income 65,746 51,994 • Reduction in Finance cost from 6.51% Expenses to 5.89% in pro
Slide 13: Standalone Balance Sheet - Quarterly (Assets)
Dilip Buildcon Limited Standalone Balance Sheet - Quarterly (₹ mn) Standalone Particulars Q3FY19 Q2FY19 Q3FY18 ASSETS Non-current assets (a) Property, plant and equipment 18,505 17,814 17,082 (b) Other Intangible assets 22 24 32 (c) Intangible assets under development 241 208 - (d) Financial assets
Slide 14: Standalone Balance Sheet - Quarterly (Equity and Liabilities)
Dilip Buildcon Limited Standalone Balance Sheet - Quarterly (₹ mn) Standalone Particulars Q3FY19 Q2FY19 Q3FY18 EQUITY AND LIABILITIES Equity (a) Equity share capital 1,368 1,368 1,368 (b) Other equity 28,480 26,394 21,026 Total equity 29,848 27,762 22,394 Liabilities Non-current liabilities (a) Fina
Slide 15: Net Debt to Equity Ratio - Quarterly
Dilip Buildcon Limited Net Debt to Equity Ratio - Quarterly 1.43 Net Debt to Equity ratio 1.32 1.35 1.35 at a healthy position 1.30 1.24 1.14 1.14 1.16 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 31.12.2018 Rs. Mn 31.12.2016 31.03.2017 30.06.2017 30.09.201
Slide 16: Net Debt to Equity Ratio – Quarterly (Working Capital & Equipment Debt)
Dilip Buildcon Limited Net Debt to Equity Ratio – Quarterly (Working Capital & Equipment Debt) 0.85 0.87 0.81 0.79 0.80 0.77 0.64 0.69 0.70 0.57 Working Capital Debt/Equity 0.53 0.53 0.50 0.48 0.47 Equipment Debt/Equity 0.50 0.46 0.45 Net Debt/Equity 1.43 1.32 1.35 1.35 1.30 1.24 1.14 1.14 1.16 31.1
Slide 17: Net Debt to Equity Ratio – Yearly
Dilip Buildcon Limited Net Debt to Equity Ratio – Yearly 2.24 2.27 Net Debt to Equity ratio is on a downward trend with increase in revenue and will continue to improve further 1.32 1.14 1.16 31.03.2015 31.03.2016 31.03.2017 31.03.2018 31.12.2018 Rs. Mn 31.03.2015 31.03.2016 31.03.2017 31.03.2018 31
Slide 18: Revenue vis-à-vis Net Debt
Dilip Buildcon Limited Revenue vis-à-vis Net Debt 91,366 (₹ mn) TTM Revenue 77,614 Net Debt Revenue grown around 4 times whereas total 51,091 net debt increased by 41,011 only 1.7 times 26,301 34,749 27,936 24,068 24,497 19,528 31.03.2015 31.03.2016 31.03.2017 31.03.2018 31.12.2018 Rs. Mn 31.03.2015
Slide 19: Higher Debt – Myth or Realty
Higher Debt – Myth or Realty • Gross and Net debt equity ratio has improved in Q3 2018-19 over Q2 2018-19 • Gross debt and net debt in absolute numbers, however, have increased due to delay in appointment date for 12 HAM and 7 EPC road projects won recently which led to delay in receipt of mobilizat
Slide 20: Asset Utilisation
Dilip Buildcon Limited Asset Utilisation 4.71 4.76 4.87 4.24 Asset Utilisation 3.04 increased due to 2.89 superior execution and 2.21 operational excellence 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30.06.2018 30.09.2018 31.12.2018 Rs. Mn 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30.06.2018 30.0
Slide 21: Capital Expenditure
Capital Expenditure • Asset utilization to revenue has increased from 2.21 as on 31.03.2015 to 4.87 as on 31.12.2018 which shows increase utilization of assets due to superior execution and operation excellence • Company has incurred capital expenditure of Rs. 2,544 Mn during 9M FY19 • Company will
Slide 22: Working Capital
Dilip Buildcon Limited Working Capital (₹ mn) Standalone Particulars Q3FY19 Q2FY19 Q3FY18 Debtors Days 49 53 62 Inventories Days 89 91 102 Total 138 144 164 Less: Creditors Days 55 48 61 Working Capital Days 83 96 103 Inventory Stock 20,523 20,301 15,326 WIP 1,689 1,042 4,172 Total 22,212 21,343 19,
Slide 23: Net Working Capital Days – Quarterly
Dilip Buildcon Limited Net Working Capital Days – Quarterly 160 137 140 127 127 131 119 120 119 113 103 103 96 100 83 89 102 85 80 79 77 73 71 72 63 61 62 61 60 95 91 89 40 37 86 65 71 59 60 55 53 48 49 20 0 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 31.1
Slide 24: Key Highlights – Working Capital
Key Highlights – Working Capital • Improvement in working capital due to better collection from customers on account of better revenue mix • Provision for doubtful debtors against private debtors made during 9M 2018-19 of Rs. 1,100 Mn and complete provisioning has been made of Rs. 2,425 Mn till date
Slide 25: Income Tax
Income Tax • Effective tax rate for 9M 2018-19 is 3% • Effective tax rate for FY 2018-19 likely be in the range of 3-8% as it depends on profits from projects eligible for 80IA deduction • No cash outflow for tax in FY 2018-19 as MAT credit and TDS deducted on revenue will be sufficient • Company’s
Slide 26: Order Book
Dilip Buildcon Limited Order Book Order Book (₹ mn) 238,881 231,002* 175,683 107,787 74,747 51,609 FY 14 FY 15 FY 16 FY 17 FY18 Q3FY19 *Excluding GST Order Book – By Sector 187,547 81.19% 33,182 657 4,250 5,366 14.36% 0.28% 1.84% 2.32% Roads, Highways & Bridges Mining Urban Development Metro Irrigat
Slide 27: Order Book – By Client
Dilip Buildcon Limited Order Book – By Client 67% 6% 12% 6% 2% 4% 2% 3% 0.28% NHAI MORTH NORTHERN SINGARENI MAHANADI GOVT(UNDERTAKING) AAI PUNJAB STATE STATE COALFIELDS COLLIERIES COMPANY COALFILEDS CORPORATION 85% of the order 15% of the order book from the book from the Central state government Go
Slide 28: Order Book – Geographical Split
Dilip Buildcon Limited Order Book – Geographical Split West Bengal, 1% Chhatisgarh, 0.17% Odisha, 8% Haryana, 0.11% Jharkhand, 5% Maharashtra, 26% Telangana, 5% Goa, 4% Road (Central Govt.) – 5% Madhya Metro (State Govt.) – 2% Pradesh, 13% Mining (Central Govt.) – 6% Andhra Pradesh, Karnataka, 20% 7
Slide 29: Shares Pledged
Dilip Buildcon Limited Shares Pledged % to Promotor’s % to Total Period No. of Shares Shareholding Shareholding Shares Pledged against Fund based facilities 85,05,000 8.22% 6.22% Shares Pledged against Non-fund based facilities 1,77,54,720 17.16% 12.98% Total Shares Pledged 2,62,59,720 25.39% 19.20%
Slide 30: Mining Business - Overview
Dilip Buildcon Limited Mining Business - Overview Dilip Buildcon Limited (DBL) has a decent experience in stone mining and crushing with a production of over Nigahi OCP OB removal 100K Metric Tons per day contract (132.46 MBCM) DBL ventured into Coal Mining Business in 2016 with Jayant OCP OB remova
Slide 31: Mining Business – Value Chain
MINING VALUE CHAIN Mining Business – Value Chain MINING BUSINESS VALUE CHAIN Pre-Development Mine Development Operations Market •Locate •Land Acquisition •Drilling & Blasting •Sales to the End (Reconnaissance) •R&R •Mining of Mineral User •Evaluate •Mines Infra • OB Excavation & •End Use Plan (Explo
Slide 32: Mining Business – Growth and Key Drivers
Dilip Buildcon Limited Mining Business – Growth and Key Drivers KEY DRIVERS OF DIVERSIFICATION Decent Experience in Stone Mining and (₹ mn) Crushing of ~100,000 Metric Tons per day Experience of Earth Work Excavation Activities 2,834 CAGR Cost-effective procurement of Equipment 41% 2,450 Exp
Slide 33: Projects won during FY19 till date
Dilip Buildcon Limited Projects won during FY19 till date Contract Value Project Name Type State Name of Employer excluding GST LOA Date Quarter (₹ mn) Bellary to Byrapura Section of NH-150A HYBRID Karnataka NHAI 8,875 01.06.2018 Q1 Nagpur Mumbai Super Communication Expressway EPC Maharashtra MSRDC
Slide 34: Projects Completed in Q3FY19
Dilip Buildcon Limited Projects Completed in Q3FY19 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 MORTH Majalgaon - Kaij Maharashtra EPC 2880 57.52 31.07.2019 24.10.2018 280 MORT
Slide 35: Monetisation of Road Assets
Dilip Buildcon Limited Monetisation of Road Assets (₹ mn) Q4 18-19 till FY17-18 9M 18-19 Q4 18-19 Q1 19-20 Q2 19-20 Particulars Total 07.02.19 Actual Actual Estimated Projected Projected Actual Money to be received by Dilip Buildcon Limited 11,800 5,700 1,610 1,840 70 2,370 210 from Shrem Group Dire
Slide 36: Status of 6 under construction divested HAM projects
Dilip Buildcon Limited Status of 6 under construction divested HAM projects 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) 31.01.2019 5th PM, 90% Physical 1 Lucknow Sultanpur 08-May-17 20-Jul-19 8
Slide 37: Key Outstanding Hybrid Projects – Recently Won
Dilip Buildcon Limited Key Outstanding Hybrid Projects – Recently Won Awarding Appointed Total Project Project name Type State Length (Kms) Equity Annuity Authority Date Cost DBL Chandikhole Bhadrak Highways Pvt. Ltd. Hybrid Odisha NHAI 16.12.2018 74.50 1,222 Annuity linked with PI 12,613 DBL Anandp
Slide 38: Equity commitment for recently won HAM projects
Dilip Buildcon Limited Equity commitment for recently won HAM projects (₹ mn) FY 18-19 till FY 18-19 Q1 FY 19-20 Q2 FY 19-20 Q3 FY 19-20 Q4 FY 19-20 FY 19-20 FY 20-21 Particulars Requirement 07.02.18 Q4 Estimated Estimated Projected Projected Projected Projected Projected Projected Actual Investment
Slide 39: 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 7,407.00 929.88 64.61 19.01.2016 24.11.2016 21.05.2019 Ghaghra Bridge to Varanasi Road 6,
Slide 40: Key Outstanding EPC Projects – Recently Won
Dilip Buildcon Limited Key Outstanding EPC Projects – Recently Won Schedule Date of Outstanding Order Project name Type Contract Value Length (Kms) LOA Date Date of Start Completion with Book EOD Seoni–MP/MH Border Road 6,518.57 5,764.35 29.29 17.01.2018 10.08.2018 08.08.2020 Karodi to Telwadi Road
Slide 41: Urban Development and Mining Projects
Dilip Buildcon Limited Urban Development and Mining Projects Urban Development Outstanding Order Schedule date of Project name Type Contract Value LOA Date Date of Start Book Completion Parallel Taxi Track and associated civil & electrical works at Urban Dev 1,250.10 656.54 May-17 May-17 May-19 Dabo
Slide 42: Irrigation and Metro Projects
Dilip Buildcon Limited Irrigation and Metro Projects Irrigation Outstanding Order Schedule date of Project name Type Contract Value LOA Date Date of Start Book Completion Navnera Barrage Irrigation 5,366.25 5,366.25 Oct-18 Oct-18 Oct-22 Metro Outstanding Order Schedule date of Project name Type Cont
Slide 43: Strategy & Business Model
Dilip Buildcon Limited Strategy & Business Model Earnings Presentation | December 2018 42
Slide 44: 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 45: 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 46: 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 | December 2018 45
Slide 47: Execution Strategy
Dilip Buildcon Limited Execution Strategy Differentiated business model with complete control over execution Earnings Presentation | December 2018 46
Slide 48: 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 49: Company Overview
Dilip Buildcon Limited Company Overview Earnings Presentation | December 2018 48
Slide 50: Overview
Dilip Buildcon Limited Diversified areas of expertise No subcontracting, Pan India presence Roads, bridges, vertically integrated and 17 states buildings, metros, dams, use of technology canals, water supply & mining Largest owner of Construction Largest employer in Best project executors constructi
Slide 51: 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 52: Execution Team
Dilip Buildcon Limited Mr. R S Garg Mr. Ajay Kumar Mr. R B Singh Mr. Arun Kumar K Chief Financial Officer Mishra AVP – Mining (Coal) AVP – Design & Technical President – Contract Management Audit Execution Team Mr. Atul Joshi Mr. Nitin Shrivastava Mr. Raja Ghosh Mr. Kamalakanta VP – Structure AVP –
Slide 53: 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 54: 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 55: 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 56: 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 57: Business Division
Dilip Buildcon Limited Business Division Roads & Highways Irrigation Urban Development Mining Metro o State & National Highway o Dams o Water supply projects o Coal Mining o Metro o City Roads o Canals & Tunnels o Buildings o Bridges & Culverts o Other Residential o Operation & Maintenance o Opera
Slide 58: Pan India Project Execution Capability
Dilip Buildcon Limited State Completed Ongoing Gross Ongoing Net Andhra Pradesh 8,616 34,180 15,587 Pan India Chhattisgarh - 9,846 400 Project Execution Himachal Goa - 15,281 9,070 Pradesh Capability Punjab Gujarat 9,814 - - Haryana Haryana 60 4,577 246 Himachal Pradesh 1,187 - - Rajasthan Uttar Pra
Slide 59: Thank You
Dilip Buildcon Limited S-ANCIAL GLOBAL SOLUTIONS PVT. LTD. (Investor Relations) Plot No. 5, Inside Govind Narayan Singh Gate, Chuna Bhatti, 215, Shivshakti Industrial Estate, J. R. Boricha Marg, Lower Kolar Road, Bhopal Madhya Pradesh - 462 016 Parel (E), Mumbai - 400 011 0755 - 4029999 0755 - 40299