Dilip Buildcon Ltd Q2 2025 Earnings Call Transcript

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

Question: Kunal Ochiramani - Kitara Capital - Analyst : Hi, sir. I just wanted to ask, like you told you are evaluating some orders of INR90,000 crores in other sectors. We are well diversified. How to look at your company at five years perspective as to how will we gauge the order book and as our realizations or, let's say, the conversion is going down this year, there's a dip in revenue this year. How do you see it in next year and next year up?

Question: Kunal Ochiramani - Kitara Capital - Analyst : As to how we see as the company is when we value or when we see our coal business and InvIT business is fairly estimable that we can estimate and we can arrive at a value or we can -- we have some visibility on the business. Can you comment something on EPC side as to how will our order book grow or some internal estimates you guys see that at least 10% or some ballpark number you have in mind?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Hi, sir. Thank you very much. Sir, just a couple of questions on one of your construction part. You have explained very well on the MDO and InvIT part. So first is this BSNL order, so what would be the 70% EPC value, excluding GST for us?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. So here also the 18% GST is there?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. And sir, you have mentioned that is including the GST, INR1,625 crores is including GST.

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : No issues. So --

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. Got it. So now broadly in terms of order inflow for this year, so you have highlighted even INR90,000 crores tenders you are evaluating. So if you can also help us in terms of sector-wise breakup, which are the segments and also road also, if you can help us what's the pipeline and what we are looking at. So net-net, INR1,100 crores plus this INR1,200 crores-odd, so kind of a INR2,300 crores kind of order inflow that we have already received. So how much more we will be looking at for this year. So INR15,000 crores, INR16,000 crores last time we said that we are looking at in terms of inflow. And also just to clarify, out of this, are we also including the MDO mining inflow that we normally take for three year kind of a revenue. So that is also included in this whatever the full year order inflow we are looking at?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. And now in terms of the debt reduction, so just to get more clarity, so which has increased close to INR700 crores plus in 1H at a gross level. So how one can look at in FY -- from now onwards, how much more reduction we are looking at by March end? And in terms of the net debt free by FY26, so that remains intact?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : So net debt free -- so will it -- now are we saying that we can be a net debt free by even FY27 and may not be in FY26?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. Okay. And what was the DBL Infra debt? Was it the similar INR650 crores-odd as on September? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 4:00AM, DIBL.NS - Q2 2025 Dilip Buildcon Ltd Earnings Call

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. Got it. And so broadly, in terms of the -- whatever the -- we are looking at INR400 crores, INR450 crores-odd inflow to the -- as a dividend and plus interest and everything. So how much broadly -- so this 1H have we -- how much we have received at a stand-alone level? And if possible, how much more we are looking at in the second half and then maybe FY26, if you can help us there?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. Okay. Got it. And then this Alpha Alternative will start from FY26 onwards only?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. Got it. And just to recheck in terms of the CapEx, just of INR46 crores we have done. So for full year at stand-alone level, how much we can look at?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. Okay. Got it. And sir, when we say now we got the SEBI approval for (inaudible), so does that mean that it will be listed on the stock exchanges?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : So maybe six months down the line, one can look at this will be listed?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. Got it, sir. Thank you, and all the best.

Question: Deepak Purswani - Swan Investments - Analyst : Hi. Good morning, sir. Sir, just wanted to check it out on two questions. Firstly, on the net debt front, we mentioned it has got delayed by 1 year and we are looking at net debt free by FY27. What is the expectation by end of FY25 at the current juncture now? Earlier, we were saying it would be around INR1,000 crores-odd. How should we see this year, we would be closing it out?

Question: Deepak Purswani - Swan Investments - Analyst : Okay. And secondly, it's good to see there is a sharp ramp-up in the MDO business. I think volume on the overall basis has increased to 10.3%, which is close to last year volume in the first half itself. If you can also share the revenues and EBITDA, how much has been the total revenue from the MDO business in the first half? And what has been the EBITDA?

Question: Deepak Purswani - Swan Investments - Analyst : Okay. And in terms of the further ramp-up in the production of MDO, how should we look into the full year as a whole now currently? And what should be the expectation over the next two years for the MDO business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 4:00AM, DIBL.NS - Q2 2025 Dilip Buildcon Ltd Earnings Call

Question: Deepak Purswani - Swan Investments - Analyst : Okay. Thank you, and wish you all the best.

Question: Vaibhav Shah - JM Financial Ltd - Analyst : Sir, so you guided for a 10% decline in terms of revenue for FY25. So given the lower base now, so can FY26 see a better growth or it should be in

Question: Vaibhav Shah - JM Financial Ltd - Analyst : So any particular guidance from your end in terms of revenue growth?

Question: Vaibhav Shah - JM Financial Ltd - Analyst : Okay. And over the longer term, say, two years to three years, our margins should be in the range of 11% to 12%?

Question: Vaibhav Shah - JM Financial Ltd - Analyst : Okay. Thank you, sir. Those were my question.

Question: Vaibhav Shah - JM Financial Ltd - Analyst : Okay. Thank you, 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. NOVEMBER 14, 2024 / 4:00AM, DIBL.NS - Q2 2025 Dilip Buildcon Ltd Earnings Call

Question: Saket Kapoor - Kapoor & Co - Analyst : Yeah. Namaskar, sir, and thank you for the opporturnity. Sir, firstly, if you could explain to us the BharatNet project, which we have back in consortium with Sterlite, what is our scope of work here? And for the O&M part also, the proportionate of 70-30 holds good?

Question: Saket Kapoor - Kapoor & Co - Analyst : Sir, I missed your point. Come again, please.

Question: Saket Kapoor - Kapoor & Co - Analyst : Okay. And in the O&M also the INR925 crores, 70-30 ratio prevail similarly?

Question: Saket Kapoor - Kapoor & Co - Analyst : Okay. But taking into account the realm of things and the space where we are, what drew us to this [INR1,200 crores], INR1,500 crores, INR1,600 crores, INR1,800 crores order in a totally different field altogether. All those are I think we bidded for eight of the packages, but we were awarded one. So if you could just give us some color on the experience and we have garnered from this type of participating in the project? And how does it make that significance for us to diverge into these businesses or these line of operations? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 4:00AM, DIBL.NS - Q2 2025 Dilip Buildcon Ltd Earnings Call

Question: Saket Kapoor - Kapoor & Co - Analyst : Sir, when we look at being one of the MDO operator for the coal mine part, what is the -- how many players have been garnered that project? Or are we simply operating the mine?

Question: Saket Kapoor - Kapoor & Co - Analyst : Sir, I was trying to understand whether in the coal mine part also, there are a lot of players operating in as MDO or are we the sole people?

Question: Saket Kapoor - Kapoor & Co - Analyst : Sir, I didn't get the point. Sir, I was asking that as an MDO operator for the mines where we are operating and we are also alluding to the fact that going ahead, we will be the second largest MDO operator for coal mines in India after Adani. So in this project also, we are garnering the total output for our client as a single person or here also, we have formed a consortium and we are sharing a part of it?

Question: Saket Kapoor - Kapoor & Co - Analyst : Okay. And sir, what explains the increase in capital work in progress at standalone number also? And if you could give the breakup for the consol part also, capital work in progress. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 4:00AM, DIBL.NS - Q2 2025 Dilip Buildcon Ltd Earnings Call

Question: Saket Kapoor - Kapoor & Co - Analyst : Okay. And lastly, sir, we have also heard from BSNL in fact, that one of the tender participant has even approached the court to challenge the tender process, having unfair practices. So are we aware of this? This is a notification from BharatNet from BSNL itself dated yesterday, November 13.

Question: Saket Kapoor - Kapoor & Co - Analyst : Okay. Thank you, sir.

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Sir, I just wanted to check when we are saying our net debt, even if we are saying some reduction will be there on Y-o-Y basis. So that seems close INR800 crores kind of a reduction that we are looking at in the second half of this financial year. So can you help us how this will be done?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. Got it. So in terms of the 1H in terms of stand-alone, the finance cost is close to INR242 crores-odd, so INR120 crores, INR122 crores quarterly. So at least for next two quarters, the similar run rate will be there?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. Okay. And sir, in terms of the inventory days, so obviously, we are trying to reduce, but do we see that any material reduction is possible even in next one year, two years?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd - Analyst : Okay. Got it. Thank you, and all the best. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 4:00AM, DIBL.NS - Q2 2025 Dilip Buildcon Ltd Earnings Call

Question: Saket Kapoor - Kapoor & Co - Analyst : Thank you, sir. Sir, for the margin profile for the BharatNet project, can you explain to us how the margins will look like?

Question: Saket Kapoor - Kapoor & Co - Analyst : So this 11% to 12% EBITDA margin is what we are eyeing even for the BharatNet business?

Question: Saket Kapoor - Kapoor & Co - Analyst : Okay, sir. And sir, since you yourself mentioned that we have bid in consortium with Sterlite with for all the projects. So is this margin profile the key reason for so many people participating for these packages? Or what has led to you garnering only one of the same and not getting further even though your partner is -- has an expertise in laying off OFC cable?

Question: Saket Kapoor - Kapoor & Co - Analyst : Okay. Sir, you have also spoken about delay in receivables. So which entity -- government entity has delayed in releasing the funds? And in which projects? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 4:00AM, DIBL.NS - Q2 2025 Dilip Buildcon Ltd Earnings Call

Question: Saket Kapoor - Kapoor & Co - Analyst : And what are the reasons the government have highlighted for this non-compliance from their end? Are we not getting any milestones?

Question: Saket Kapoor - Kapoor & Co - Analyst : Okay. And sir, lastly, on the Amrit 2 scheme also, wherein the river linking projects have also been -- have been showcased. So what is -- in your bid pipeline, do you have the river linking project of the central government under the Amrit 2 also, wherein we are participating or we are keen to bid for?

Question: Saket Kapoor - Kapoor & Co - Analyst : Okay. So we have not exactly bid as of now for this given any projects?

Question: Saket Kapoor - Kapoor & Co - Analyst : Okay. Thank you, sir.