Dilip Buildcon Ltd Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shravan Shah - Dolat Capital - Analyst : Thank you, sir. First, on the order inflow front, so now we have seen a higher order inflow of INR15,000 crores to INR16,000 crores versus last time we say INR10,000 to INR12,000-odd crores. So just trying to understand for that how many value of projects we have already begin and which is yet to open. That is one. And second, how much more we are planning to bid. And broadly, if we break up this INR15,000 crores, INR16,000 crores order inflow, so how much we are looking in the hand and any other sectors which you want to highlight?

Question: Shravan Shah - Dolat Capital - Analyst : Okay. Second, in terms of the on the revenue front, so obviously, this quarter was muted one, and we were looking at kind of a flat for full year FY25 so now is there any upward revision in the revenue also this year or may be if possible for next year, given the order inflow will be higher this year, so FY26. Is there any kind of guidance that are we likely to give for '26?

Question: Shravan Shah - Dolat Capital - Analyst : And in terms of the margins also, so this quarter was 11.1%. So we are looking at 12% to 14%. So given now we are seeing a 5% lower revenue growth or degrowth rather this year. So in terms of the margin also, will it be a kind of 11%?

Question: Shravan Shah - Dolat Capital - Analyst : Okay. And sir, on the base front, correct me if I'm wrong. You mentioned this year though this quarter INR700 crores the gross rate has increased because of the working capital. So I want to understand 2 aspects whether this working capital, particularly data? Have we collected post the June till now and how we look at the working capital by end of FY25. And broadly, you mentioned INR1,000 crore gross debt reduction in FY25.

Question: Shravan Shah - Dolat Capital - Analyst : Okay. So from INR1,226 crores, net debt, we will be reducing by close to INR1,000-odd crores, so around INR1,200 crores, INR1,250-odd crores net debt by end of March that we are looking at..

Question: Shravan Shah - Dolat Capital - Analyst : Okay. And then the next year, this will be the entire will be kind of we will become a net cash kind of a company by FY26.

Question: Shravan Shah - Dolat Capital - Analyst : Okay. Understood. And lastly, just on particularly on the stand-alone in terms of the finance costs and other income. So just wanted to understand. So we were kind of looking at 350-odd kind of total finance cost for this year to stand alone. This quarter, it is because of the data has increased, so finance cost has also increased INR190-odd crores. So how do we look at for full year the finance cost and in the same way, the other income was just INR13-odd crores. So there, how much more are we going to receive any kind of a dividend from any of the InvIT, Shrem or any other MDO through where this income order income can go up?

Question: Shravan Shah - Dolat Capital - Analyst : Okay, Got it, sir. Thank you and All the best.

Question: Ishita Lodha - SVAN Investments - Analyst : Yeah, Hi. Am I audible?

Question: Ishita Lodha - SVAN Investments - Analyst : So my first question is on the coal mining business.

Question: Ishita Lodha - SVAN Investments - Analyst : All right. The revenue in coal mining business has actually declined despite like better production volumes. So is this due to lower realization or what has led to the reduction in revenue from INR163 crores in last quarter to INR150 crores in current quarter?

Question: Darshil Jhaveri - Crown Capital - Analyst : Hello. Good evening, sir. Thank you so much for taking my question. A lot of my questions have already been answered. So just wanted to like understand like now we are also now getting into our other segment of optic fiber. So how are things looking out there so like display corporate, like what will our strategy be? Because there might be some intense competition out there or?

Question: Darshil Jhaveri - Crown Capital - Analyst : Okay, fair. Fair enough, sir. And so just wanted to understand, I understand you're being a bit conservative like maybe how our Q1 has been, but is there a possibility of a good surprising edge to pick up an order pickup? Like is that a fair assumption? How are we looking at that so.

Question: Darshil Jhaveri - Crown Capital - Analyst : Fair enough, sir, just like last question. So there are some state electionss coming up. So will that also impact order inflow or majorly ours will be related to center? Or it kind of positive or negative impact because maybe center as to allocate more projects. So just like any idea on that, sir? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 12:30PM, DIBL.NS - Q1 2025 Dilip Buildcon Ltd Earnings Call

Question: Darshil Jhaveri - Crown Capital - Analyst : So, that's from my side. Thank you.

Question: Parikshit Kandpal - HDFC Securities. - Analyst : I'm looking at your slide number I'm looking at the slide 36. Sorry, is on the stream nit part and the Alfa DBL unit. So it looks like you will be recording almost 20 plus 90, almost INR375 crores of distribution in FY26. So this will get reflected in your stand-alone other income?

Question: Parikshit Kandpal - HDFC Securities. - Analyst : Then given the nature of the capital structure of these net, so how much do you think can accrue to your P&L out of this INR 380-odd crores in FY26 summer, do you think can come into P&L.

Question: Parikshit Kandpal - HDFC Securities. - Analyst : This is a substantial number coming accruing to our profitability. That's why I was questioning. And so I understood you said 23 May, as of now, given the historical capital structure and distribution. It could be two-third, but it will be known closer to when it gets distributed. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 12:30PM, DIBL.NS - Q1 2025 Dilip Buildcon Ltd Earnings Call Second question is on the MDOs. Now these MDOs, we are at least in CRM, we are ahead of actual contracted production. And in Pachhwara we lagging. So just wanted to understand why so if you can give us what was the total profitability of MDO in the last financial year. And in this one quarter, how much these 2 MDs would have contributed? And given that there is a significant ramp-up happening. So how do we see the profitability of these MDO over the next few years?

Question: Parikshit Kandpal - HDFC Securities. - Analyst : Target, but in FY24, I saw the number of FY24 well 7 metric tonne was in tube.

Question: Parikshit Kandpal - HDFC Securities. - Analyst : Making ramp up over this I mean we can share some numbers on how the profitability has been in Q1 because they are ahead of schedule and your profit is at preponed, and also if you can throw some light on how much CapEx is spending to ramp up to the full potential in both the mines.

Question: Parikshit Kandpal - HDFC Securities. - Analyst : And pending CapEx keen no project not to ramp up to the full potential, like how much would mean the CapEx you need to ramp up the mine?

Question: Parikshit Kandpal - HDFC Securities. - Analyst : Okay. So sir, once on the InvIT, if you start getting this invites dividend, so what will be your impact on because will it pass on to the investors as dividend or you will reinvest it into business? How do you look because this will be substantial cash flow, which will come accrued to us because

Question: Parikshit Kandpal - HDFC Securities. - Analyst : On the all these InvIT units that you receive, I understand INR4,000 or INR5,000 , INR40 crores, INR5,000 crores, I think put together, is it right like the number will be close about INR4,500. And if you then will you be consolidating this that of this InvIT or it become an associate once the InvIT is operational?

Question: Parikshit Kandpal - HDFC Securities. - Analyst : So that the HAM that which you are currently carrying on will get knocked down because of consolidation. So it will not reflect in your consolidated balance sheet, right?

Question: Parikshit Kandpal - HDFC Securities. - Analyst : That means your console will closely mirror your stand-alone debt, which will be anyways net cash by then in two years, which you are guiding. So you will be hardly carrying some debt on your MDO, which may be you said INR2,000 crores and plus something in other coal mines. So that could be what will remain debt will largely remain right, just all that will get down.

Question: Parikshit Kandpal - HDFC Securities. - Analyst : Sir, just my last question on balance sheet and where one thing which always creates, I mean, kind of like which I'm very much, very not much comfortable is your inventory levels. Now you've started doing tailor growth. But still your inventory is not coming down, it's still at INR334 crores, which is almost one-third of your sales may potentially for this year. So it is like and this is the highest in the industry. When the industry is running at 40 days or 25, 30 days, still at 110, 120 days. So now we don't get any bonuses also from any of our early completion models, where we used to maintain aggregate inventory and roads as a percentage has also come down. Just wanted to get a sense on guidance on how will be the rundown of this inventory because this is what is depleting our return ratios and elevating our working capital. So this is not there. I mean, so why still so much of inventory you're carrying on your books? If you can you give some more color, that will be helpful. And where do you see that by year end, I mean, FY27?

Question: Parikshit Kandpal - HDFC Securities. - Analyst : Okay. I think this is the one last thing which you should I mean, if you're able to tackle it, I think then it could be substantially.

Question: Parikshit Kandpal - HDFC Securities. - Analyst : Sure, Thank you, Rohan. Thank you.

Question: Vishal Periwal - Antique Stock Broking - Analyst : A couple of questions. First, you mentioned on the coal side that we'll do something like INR5,500 crores kind of top line for the next three years accumulated. So is that fair to say because the order book for this coal is 2,500, which is kind of OpEx for the MDO. So I mean, we can make an EBITDA of like INR3,000 crores cumulative for the coal business for us?

Question: Vishal Periwal - Antique Stock Broking - Analyst : You mentioned INR5,500 crores is what we'll do for the coal MDO business level.

Question: Vishal Periwal - Antique Stock Broking - Analyst : Okay. Got it. And second, you mentioned that the optic fiber cable, 16 packages that we have bidded I know, I mean, like though outcome will be known in times to come. But in terms of is it like what exactly our role in this, it's in a -- I mean, any JV that we have done? What is our share? Would it be okay to share that?

Question: Vishal Periwal - Antique Stock Broking - Analyst : Okay. And is this done like we have on our own, we are doing it? Or is it some JV, whatever the order that we get is JV that will be getting booked?

Question: Vishal Periwal - Antique Stock Broking - Analyst : And maybe two bookkeeping sort of question. So in terms of tax rate, how exactly we see for FY25 and '26 for us? This quarter, it was something like 14% or so this quarter check.

Question: Vishal Periwal - Antique Stock Broking - Analyst : Okay. So it will be 33% for FY25 and it's similar for next year, right, sir?

Question: Vishal Periwal - Antique Stock Broking - Analyst : Okay. And then one last thing on even on depreciation, I mean, sharp reduction that we are seeing is it just because I mean, the gross block is seeing a reduction or you changed our defection rate also?

Question: Vishal Periwal - Antique Stock Broking - Analyst : Okay. Got it. Yeah, thats all from my side. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 12:30PM, DIBL.NS - Q1 2025 Dilip Buildcon Ltd Earnings Call

Question: Vaibhav Shah - JM Financial - Analyst : Yes, thanks for the opportunity. a couple of questions. First, you mentioned on the call, So in the equity tracker sheet, we have mentioned that the investor equity till June is INR1,646 crores. So what could be the same number as on March '24?

Question: Vaibhav Shah - JM Financial - Analyst : So you invested something in Siarmal in this quarter? I wanted to AM equity as of March.

Question: Vaibhav Shah - JM Financial - Analyst : In the last quarter of the presentation, it was for 16M. So it is not comparable, that's why...

Question: Vaibhav Shah - JM Financial - Analyst : So the HAM project number, the investment in HAM projects in first quarter would be how much out of that INR165 crores is important. That is all my questions. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 12:30PM, DIBL.NS - Q1 2025 Dilip Buildcon Ltd Earnings Call

Question: Vaibhav Shah - JM Financial - Analyst : And secondly, the incremental INR760 crores will be spending. So that would be done from the stand-alone books now or some subsidies also would be investing incrementally? Some what would be investing?

Question: Vaibhav Shah - JM Financial - Analyst : Okay. Sir, secondly, on the units, which we are expecting the distribution from units of Shrem and Alpha, you have indicated the number. So what would be the tax complication on this?

Question: Vaibhav Shah - JM Financial - Analyst : And the same number for Alpha?

Question: Vaibhav Shah - JM Financial - Analyst : Okay. And sir, lastly, what would what are our CapEx plans on the stand-alone business for FY25 and '26?

Question: Vaibhav Shah - JM Financial - Analyst : And sir, earlier, they indicated that over a longer term, we are targeting EBITDA margins of, say, 12% to 14-odd percent on the stand-alone DBL so this year has been weak in the first quarter, and we are expecting somewhere around 11% to 12% for FY25. But once the execution takes up say '26 or '27 are over the next 2 to 3 years, what would be our margin rate? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 12:30PM, DIBL.NS - Q1 2025 Dilip Buildcon Ltd Earnings Call

Question: Vaibhav Shah - JM Financial - Analyst : So to all the achievable, maybe over the longer term?

Question: Vaibhav Shah - JM Financial - Analyst : Thank you, sir.

Question: Prem Khurana - Anand Rathi Shares & Stock Brokers - Analyst : Yeah. Thank you for taking my question. Most of my questions are already answered. Just one small clarification on our financials that we've reported. So when consolidated numbers that you reported, the segment highlights, there is this INR510 crores of loss in annuity projects and others go what exactly will this be? And even on the EPC side, the margin seems to be almost around to the extent of 30-odd percent, which generally used to be sub 10%. Would you be able to kind of clarify these two please?

Question: Prem Khurana - Anand Rathi Shares & Stock Brokers - Analyst : This is so the results release that you had. The release 15 of 19. The segment highlights consolidated.

Question: Prem Khurana - Anand Rathi Shares & Stock Brokers - Analyst : 15 of 19 of the [PDF].

Question: Prem Khurana - Anand Rathi Shares & Stock Brokers - Analyst : Because when I look at the comparable quarter, I mean, this number was not this large, I mean any time in the past. And even the EPP side, INR920 crores on INR3,000 crores is of top line, again, seems to be on a higher side versus the when you look at Q4 or Q1 last year? Was sub 10% sort of number.

Question: Vaibhav Shah - JM Financial - Analyst : On more small clarification. I think the money that we said were supposed to receive from Alpha Alternatives, right, for the 26% stake INR478 crores that you show on slide 27 is adjusted for the INR160 crores that we've received, right?

Question: Prem Khurana - Anand Rathi Shares & Stock Brokers - Analyst : Sure. Thank you.

Question: Shravan Shah - Dolat Capital - Analyst : Hi, Sir, this net distribution that we have spoken, and we have what is there in the Page '26 of presentation. So broadly, how one can look at in terms of how much this will come to stand-alone PML because something will also go to DBL that can help in terms of percentage, broader percentage will help. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 12:30PM, DIBL.NS - Q1 2025 Dilip Buildcon Ltd Earnings Call

Question: Shravan Shah - Dolat Capital - Analyst : Sorry, sir. Can you repeat the last one?

Question: Shravan Shah - Dolat Capital - Analyst : Okay. So broadly, kind of 60%, if I broadly look at 51% of 74%, broadly 64-odd-percent that DBL. And force stream, how one can look at?

Question: Shravan Shah - Dolat Capital - Analyst : Okay. So same rate for both broadly 80% to 60% that we will be receiving that stand-alone?

Question: Shravan Shah - Dolat Capital - Analyst : Okay. And sir, though we have said I just wanted to further clarify in terms of data on the working capital, obviously, you've explained the inventory at that wanted to reduce. But in terms of the particular the data, will it come back to the normal as of March, it was 48 days. So now as you are saying you have received some money in terms of back to by end of March 25, we will be having the similar 50-odd days data base.

Question: Shravan Shah - Dolat Capital - Analyst : Okay. And overall total, whatever the increase has happened 15, 18 days. So that should also come back to the normal level in terms of the working capital days by end of March? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 13, 2024 / 12:30PM, DIBL.NS - Q1 2025 Dilip Buildcon Ltd Earnings Call