Dilip Buildcon Ltd. · NSE:DBL
Dilip Buildcon — Q1 FY20 Earnings Presentation
56 slides from Dilip Buildcon's earnings presentation, Aug 5, 2019
Slide 1: Dilip Buildcon Limited – Investor Presentation Cover Letter
® DILIP BUILDCON LIMITED INFRASTRUCTURE & BEYOND Dale: -August 05, 2019 To To BSE Limited National Stock Exchange of India Ltd, L isting Department Exchange Plaza, C-I , Block G P.J Tower` Dalal Street BandraKurla Complex` Mumbai -400001 Bandra (E). Mumbai -400051 Stock Symbol -540047 Stock Symbol -
Slide 2: Q1 FY20 Earnings Presentation
Q1 FY20 Earnings Presentation
Slide 3: Contents
Dilip Buildcon Limited Standalone Financial Highlights Page: 03 Consolidated Financial Highlights Page: 22 Order Book and Project Status Page: 24 Strategy & Business Model Page: 40 Company Overview Page: 46 Earnings Presentation | August 2019 2
Slide 4: Standalone Financial Highlights
Dilip Buildcon Limited Standalone Financial Highlights Earnings Presentation | August 2019 3
Slide 5: Key Highlights
• Won EPC projects worth Rs. 11,896 Mn for construction of extra-dosed bridge Dilip Buildcon Limited across Sharavathi backwaters from MoRTH in the state of Karnataka and construction of Kharkai Dam at Icha from Water Resources Department in the state of Jharkhand Key • Completed Kathipudi-Kakinada
Slide 6: Results Summary – Q1FY20 (Standalone)
Dilip Buildcon Limited Results Summary – Q1FY20 (Standalone ) Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) -6% 24,454 -4% 2,555 23,000 4,418 -51% 4,242 1,256 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Contract Revenue Breakup (₹ mn) Roads & Bridge Irrigation Urban Development Mining -11% -100
Slide 7: Result Update - Standalone
Dilip Buildcon Limited Result Update - Standalone (₹ mn) Particulars Q1FY20 Q4FY19 Q1FY19 Y-o-Y (%) FY19 FY18 Y-o-Y (%) Revenue 23,000 25,900 24,454 -5.95% 91,646 77,614 18.08% Operating expenses 18,759 21,214 20,037 -6.63% 75,138 63,431 18.46% EBITDA 4,242 4,686 4,418 -3.99% 16,508 14,183 16.39% EB
Slide 8: Standalone Profit & Loss - Quarterly
Dilip Buildcon Limited Standalone Profit & Loss - Quarterly (₹ mn) Standalone Particulars Highlights Q1FY20 Q1FY19 Revenue from Operations 22,880 24,363 • Revenue decreased by 6% on Y-o-Y basis Other income 121 91 Total Income 23,000 24,454 • PAT decreased by 51% on Y-o-Y basis on Expenses account o
Slide 9: Standalone Balance Sheet
Dilip Buildcon Limited Standalone Balance Sheet (₹ mn) Particulars 30.06.2019 31.03.2019 30.06.2018 ASSETS Non-current assets (a) Property, plant and equipment 20,855 20,482 17,906 (b) Capital work in progress 1 - 193 (c) Other Intangible Assets 323 341 27 (d) Financial assets (i) Investments 6,382
Slide 10: Standalone Balance Sheet
Dilip Buildcon Limited Standalone Balance Sheet (₹ mn) Particulars 30.06.2019 31.03.2019 30.06.2018 EQUITY AND LIABILITIES Equity (a) Equity share capital 1,368 1,368 1,368 (b) Other equity 31,846 30,676 25,758 Total equity 33,214 32,044 27,125 Liabilities Non-current liabilities (a) Financial liabi
Slide 11: Standalone Cash Flow - Quarterly
Dilip Buildcon Limited Standalone Cash Flow - Quarterly (₹ mn) Particulars Q1FY20 CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax as per Statement of Profit and Loss 1,606.80 Adjustments for: Depreciation 1,046.92 Interest Income (62.80) (Profit)/Loss on sale of fixed assets 5.05 Interest
Slide 12: Standalone Cash Flow - Quarterly
Dilip Buildcon Limited Standalone Cash Flow - Quarterly (₹ mn) Particulars Q1FY20 CASH FLOW FROM INVESTMENT ACTIVITIES Purchase of Fixed Assets (767.39) Purchase of Investments (923.52) Interest Received 62.80 NET CASH USED IN INVESTING ACTIVITIES (TOTAL B) (1,628.12) CASH FLOW FROM FINANCING ACTIVI
Slide 13: Working Capital
Dilip Buildcon Limited Working Capital (₹ mn) Particulars Q1FY20 Q4FY19 Q1FY19 Debtors Days 57 56 59 Inventories Days 104 100 86 Total 161 156 145 Less: Creditors Days 69 69 60 Working Capital Days 92 87 85 Inventory Stock 24,872 23,351 19,764 WIP 921 1,687 347 Total 25,793 25,038 20,111 Earnings Pr
Slide 14: Net Working Capital Days – Quarterly
Dilip Buildcon Limited Net Working Capital Days – Quarterly 160 137 140 127 127 119 120 131 103 119 103 96 87 92 100 83 113 89 102 85 80 73 72 79 63 77 71 61 60 61 62 65 59 100 104 95 37 86 53 91 89 40 49 71 69 69 60 55 56 57 48 20 0 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018
Slide 15: Net Debt trend for last 4 years from March to June Quarter
Dilip Buildcon Limited Net Debt trend for last 4 years from March to June Quarter Increased by Decreased by Increased by Increased by Rs. 2,951 Mn Rs. 444 Mn Rs. 1,210 Mn Rs. 2,955 Mn 33,876 33,432 30,891 27,936 27,019 24,068 24,497 25,707 Net Debt Net Debt Net Debt Net Debt 31.03.2016 30.06.2016 31
Slide 16: Net Debt to Equity Ratio – Quarterly
Dilip Buildcon Limited 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 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 Rs. Mn 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2
Slide 17: Net Debt to Equity Ratio – Quarterly (Working Capital & Equipment Debt)
Dilip Buildcon Limited Net Debt to Equity Ratio – Quarterly (Working Capital & Equipment Debt) 0.87 0.81 0.79 0.80 0.77 0.69 0.70 0.63 0.58 0.55 0.53 0.48 0.53 0.50 0.47 0.50 0.45 0.46 0.48 0.46 1.32 1.30 1.35 1.35 1.24 1.13 1.14 1.16 1.06 1.01 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018
Slide 18: Net Debt to Equity Ratio – Annually
Dilip Buildcon Limited Net Debt to Equity Ratio – Annually 2.27 1.32 1.13 1.06 1.01 31.03.2016 31.03.2017 31.03.2018 31.03.2019 30.06.2019 Rs. Mn 31.03.2016 31.03.2017 31.03.2018 31.03.2019 30.06.2019 Net Debt 24,068 24,497 27,800 33,876 33,432 Equity 10,621 18,529 24,571 32,044 33,214 Earnings Pres
Slide 19: Net Debt to Equity Ratio – Annually (Working Capital & Equipment Debt)
Dilip Buildcon Limited Net Debt to Equity Ratio – Annually (Working Capital & Equipment Debt) 1.31 0.96 0.79 2.27 0.63 0.58 0.55 0.53 0.50 0.48 0.46 1.32 1.13 1.06 1.01 31.03.2016 31.03.2017 31.03.2018 31.03.2019 30.06.2019 Net Debt/Equity Equipment Debt/Equity Working Capital Debt/Equity Rs. Mn 31.
Slide 20: Asset Utilisation
Dilip Buildcon Limited Asset Utilisation 4.40 4.24 4.26 3.04 2.89 2.21 31.03.2015 31.03.2016 31.03.2017 31.03.2018 31.03.2019 30.06.2019 Rs. Mn 31.03.2015 31.03.2016 31.03.2017 31.03.2018 31.03.2019 30.06.2019 Revenue 26,301 41,011 51,091 77,614 91,646 90,192 Net Block 11,890 14,204 16,825 18,319 20
Slide 21: Capital Expenditure
Dilip Buildcon Limited Capital • Company has capitalized Rs. 631 Mn during Q1FY20 Expenditure out of capital advances given before 31st March 2019 • Based on current order book, Company do not envisage any capital expenditure on equipment during FY 2019-20 • As per new Ind AS 116, Company has accoun
Slide 22: Income Tax
Dilip Buildcon Limited Income Tax o Effective tax rate for Q1FY20 is 22% o MAT credit unutilized as on 30th June 2019 is Rs. 4,452 Mn o 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 cre
Slide 23: Consolidated Financial Highlights
Dilip Buildcon Limited Consolidated Financial Highlights Earnings Presentation | August 2019 22
Slide 24: Consolidated Profit & Loss - Quarterly
Dilip Buildcon Limited Consolidated Profit & Loss - Quarterly (₹ mn) Particulars Q1FY20 Q4FY19 Q1FY19 Revenue from Operations 24,364 25,716 25,226 Other income 138 182 96 Total Income 24,503 25,898 25,322 Expenses Cost of materials consumed 17,692 19,779 18,621 Changes in inventories of finished goo
Slide 25: Order Book and Project Status
Dilip Buildcon Limited Order Book and Project Status 24 2 Earnings Presentation | August 2019 4
Slide 26: Business Division
Dilip Buildcon Limited Business Division ROADS & HIGHWAYS IRRIGATION URBAN DEVELOPMENT MINING METRO SPECIAL BRIDGES AIRPORT TUNNEL Earnings Presentation | August 2019 25
Slide 27: Total Order Book
Dilip Buildcon Limited Total Order Book (₹ mn) 238,881* 211,718 * 190,290 * 175,683 107,787 74,747 51,609 FY14 FY15 FY16 FY17 FY18 FY19 Q1FY20 *Excluding GST Earnings Presentation | August 2019 26
Slide 28: Order Book – Sector Wise
Dilip Buildcon Limited Order Book – Sector Wise 74.35% 141,472 14.37% 27,354 2.82% 2.22% 3.81% 2.26% 5366 7257 0.17% 4226 4296 319 Roads, Highways & Mining Irrigation Metro Special Bridge Tunnel Urban Bridges Development (Airport) Earnings Presentation | August 2019 27
Slide 29: Order Book – Client Wise
Dilip Buildcon Limited Order Book – Client Wise 66.65% 4.48% 13.27% 5.08% 1.81% 4.41% 1.05% 3.07% 0.17% NHAI MORTH NORTHERN COALFIELDS SINGARENI COLLIERIES MAHANADI GOVT(UNDERTAKING) AAI PUNJAB STATE STATE COMPANY COALFILEDS CORPORATION 84% of the order book from the 16% of the order book from Centr
Slide 30: Order Book – Geography Wise
Dilip Buildcon Limited Order Book – Geography Wise West Bengal Rajasthan Odisha 1% 3% 8% Maharashtra Jharkhand 24% 6% Telangana 4% Goa 4% Road (Central Govt.) – 4.3% Metro (State Govt.) – 2.2% Madhya Pradesh 12% Mining (Central Govt.) – 5.1% Karnataka 24% Andhra Pradesh 5% Uttar Pradesh 9% Earnings
Slide 31: Projects won till date in FY20
Dilip Buildcon Limited Projects won till date in FY20 Contract Value Project Name Type State Name of Employer excluding GST LOA Date Quarter (₹ mn) Extra-dosed bridge across Sharavathi backwaters Road Karnataka MoRTH 3,215 30.07.2019 Q2 Water Resources Construction of Kharkai Dam at Icha Irrigation
Slide 32: Projects Completed
Dilip Buildcon Limited Projects Completed Scheduled Actual Early Cost of work Date of Name of the Employer Project Name State Type of work Length Completion Completion (₹ mn) Completion Date Days with EOD Andhra MoRTH Kathipudi-Kakinada EPC 2,511 27.50 28.03.2019 28.03.2019 - Pradesh Uttar NHAI Luck
Slide 33: Monetisation of Road Assets
Dilip Buildcon Limited Monetisation of Road Assets (₹ mn) FY 18-19 Q1 19-20 Q2 19-20 Q3 19-20 S. No. Particulars Total Actual Actual Projected Projected A Amount receivable by DBL (i) Consideration against 18 (14+4) completed assets 8,140 7,000 160 980 - DBL’s upfront equity investment in 6 under co
Slide 34: Status of 6 under construction divested HAM projects
Dilip Buildcon Limited Status of 6 under construction divested HAM projects Plan as per CA Milestone Achieved % of work Payment Milestone Appointed Early Achieved Sr.No Project done as on (Grant) Date (Days) Date Days Date Days 31.07.2019 1 Lucknow Sultanpur Completed 08.05.2017 - - - - - Completed
Slide 35: Hybrid Road Projects – Current Status
Dilip Buildcon Limited Hybrid Road Projects – Current Status (₹ mn) Expected Awarding Appointed Length Total Project Project name State Appointed Equity Authority Date (Kms) Cost Date DBL Rewa Sidhi Highways Pvt. Ltd. Madhya Pradesh NHAI 14.12.2018 - 15.35 906 8,152 DBL Chandikhole Bhadrak Highways
Slide 36: Hybrid Road Projects – Progress
Dilip Buildcon Limited Hybrid Road Projects – Progress Plan as per CA Milestone Achieved Early % of work Payment Milestone Sr.No Project Appointed Date Achieved done as on (Grant) Date Days Date Days (Days) 31.07.2019 1st PM, 10% Physical 1 DBL Anandpuram Anakapalli Highways Pvt. Ltd. 04.01.2019 20.
Slide 37: Equity commitment for recently won HAM projects
Dilip Buildcon Limited 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 19-20 FY 20-21 Particulars Requirement Actual Actual Projected Projected Projected Projected Projected Investment for 12 new 15,315 3,893 1,158 2,556 2,348 1890 7
Slide 38: Key Outstanding Road EPC Projects
Dilip Buildcon Limited Key Outstanding Road EPC Projects Outstanding Schedule Date of Project name Type Contract Value Order Book as Length (Kms) LOA Date Date of Start Completion with on 30.06.2019 EOD Seoni–MP/MH Border Road 6,518.57 3,934.56 29.29 17.01.2018 10.08.2018 08.08.2020 Karodi to Telwad
Slide 39: 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 Book as on LOA Date Date of Start Completion 30.06.2019 Parallel Taxi Track and associated civil & electrical Urban Dev 1,250.10 319.13 May-17 May-17 Sep
Slide 40: Irrigation and Metro Projects
Dilip Buildcon Limited Irrigation and Metro Projects Irrigation Outstanding Order Schedule date of Project name Type Contract Value Book as on LOA Date Date of Start Completion 30.06.2019 Navnera Barrage Irrigation 5,366.25 5,366.25 Oct-18 Oct-18 Oct-22 Metro Outstanding Order Schedule date of Proje
Slide 41: Strategy & Business Model
Dilip Buildcon Limited Strategy & Business Model Earnings Presentation | August 2019 40
Slide 42: 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 43: 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 44: Backward Integration
Dilip Buildcon Limited Pipe Rolling Electric Pole Bus Shelter Machine pto Foundry Ø200 X 8 Mm Pole blank cutting machine Metal Beam Metal Beam Bearing & 14MTR X 3 MTR Crash Barrier Crash Barrier Expansion Joint Gantry plazma Backward Integration Earnings Presentation | August 2019 43
Slide 45: Execution Strategy
Dilip Buildcon Limited Execution Strategy Differentiated business model with complete control over execution Earnings Presentation | August 2019 44
Slide 46: Investment Rationale
Dilip Buildcon Limited Investment Rationale Execution track record Sustainable growth Robust order book In-house No dependence on Experienced Process and system Capabilities sub-contractors leadership team driven company with High quality execution from Strong performance Diversification by supporte
Slide 47: Company Overview
Dilip Buildcon Limited Company Overview Earnings Presentation | August 2019 46
Slide 48: 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 49: 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 50: Execution Team
Dilip Buildcon Limited 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 Management AVP – Mining (Coal) AVP – Design & Technical Audit Mr. Mohan Tiwari Mr. Atul Joshi Mr. Nitin Shri
Slide 51: Milestones
Dilip Buildcon Limited DBL achieves a record topline of INR 77,614 mn in FY17-18, registering a growth Bought first of 52% from FY16-17 Entered in Tunnels & Metro 1996 stone crusher 2006 Incorporated 2019 Segment 2018 DBL achieves a record topline of INR 91,646 mn in FY18-19, registering a Business
Slide 52: Awards, Accreditation & Accolades
Dilip Buildcon Limited Awards, Accreditation & Accolades Highest Upliftment of Bitumen by Indian Oil in 2013 Fastest Growing Construction Company Single Largest Customer of BKT OTR (Large Category) by Construction World Tires in India in 2015 in 2016 Esteemed Customers of Metso NW Series Portable Pl
Slide 53: Awards, Accreditation & Accolades
Dilip Buildcon Limited Awards, Accreditation & Accolades Commitment for Products and Services Award for Outstanding Contribution in by Ashok Leyland Roads & Highways from 8th EPC World in 2018 LEED Certification by Indian Green Building Council in 2014 Purchase of Volvo Trucks and Construction Equip
Slide 54: 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 55: Pan India Project Execution Capability
(₹ mn) Dilip Buildcon Limited State Completed Ongoing Gross Ongoing Net Andhra Pradesh 20,514 22,282 10,240 Pan India Chhattisgarh 3,681 6,165 106 Project Execution Himachal Goa - 15,281 7,576 Pradesh Capability Punjab Gujarat 9,814 - - Haryana Haryana 60 4,577 - Himachal Pradesh 1,187 - - Rajasthan
Slide 56: 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