Dilip Buildcon Ltd Q3 2025 Earnings Call Transcript

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

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Hi sir. Thank you for the opportunity. Sir first, just wanted to understand in terms of the awarding part. And then for us also, Q3 aspects to understand, one is, how many value of projects that we have already bided and yet to be opened? Second, how much are we planning to bid by March '25? And ultimately, if I look at -- we have received two projects, INR2,100-odd crore (inaudible) date and we are looking at INR15,000- to INR16,000-odd crore in FY '25. So now, how much are we looking at? And if it is on the lower side, so for FY '26, how one can look in terms of the order inflow for us? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 15, 2025 / 4:30AM, DIBL.NS - Q3 2025 Dilip Buildcon Ltd Earnings Call

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. From now to -- by end of March '26, we will be getting additional INR15,000 crore to INR16,000 crore net addition?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. So next 13 to 14 months, we will be getting that. But sir, don't you think that this is much lower? So even if we, let's say, this year, earlier, when we were looking at INR15,000 crore to INR16,000 crore, so obviously, the kind of a similar number should be there for FY '26 also, so net-net kind of a INR30,000 crore or INR25,000 crore, INR30,000 crore versus now, we are seeing just INR15,000 crore, INR16,000 crore by March '26.

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. Because -- So then the other question is, obviously, on the revenue front already which is 12% on a standalone basis is lower in nine months. Now if we are looking only INR15,000 crore, INR16,000 crore, net- net, even if, let's say, INR16,600 crore already, we have INR16,000 crore addition, so kind of a INR32,000-odd crore. And out of that, for fourth quarter ending next year, how much then we can look at to do the execution?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : I do want to just get more clarity. So currently, we are in terms of the net debt having got INR1,277 crore at standalone. So by March, we will be having the similar number of the December number or are we saying it will be similar to the March '24 number?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. And then the net debt-free that we were looking by FY '27, that remains intact?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : And then in FY '27, that will also be -- we will be a net cash company? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 15, 2025 / 4:30AM, DIBL.NS - Q3 2025 Dilip Buildcon Ltd Earnings Call

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. And just to get more clarity here, so from currently close to INR600 crore, INR700 crore reduction in this quarter itself, so that is led by what, sir?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. And lastly, sir, two things, in terms of the margin front, so currently 10.4% for standalone EBITDA margin versus we were looking at some 11% or 12%. So is there a possibility of further improvement in the fourth quarter even for next year? Can we able to do this or 10% to 11%, that's the way one can look at.

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. Got it, sir. Sir, I have more questions. Will come back in the queue. Thank you and all the best, sir.

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. No issues, sir. So sir, the CapEx that we have done was on the higher side. So any specific project where we have done, INR188-odd crore CapEx versus we are looking at INR150 crore. So any specific project which has laid this increase? And how now one can look at in terms of the fourth quarter and maybe even if we are doing, let's say, INR9,000 crore of revenue next year, how one can look from the CapEx perspective? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 15, 2025 / 4:30AM, DIBL.NS - Q3 2025 Dilip Buildcon Ltd Earnings Call

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. Got it. And sir, in terms of now, the Q3 aspect, one, is the InvIT, by 1Q, we will be going for a public InvIT. So will it get listed by June '25, sir?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. Got it. And for three units, this quarter we have sold some units and (inaudible), so is there any plan to (inaudible) furthermore for (inaudible) --

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Is it better now?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Yeah. So I was saying that the same unit in this quarter, we have sold some units. So are you planning to sell more units or the balance we will be keeping?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. Got it. And sir, in terms of the MDO where we are doing very good, is there a way, as a management, we are thinking Q3 aspects, whether to go ahead for a listing of that entity, subsidiary, or JV? Or is there a way where we will be giving full financial numbers which can help us to capture that value? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 15, 2025 / 4:30AM, DIBL.NS - Q3 2025 Dilip Buildcon Ltd Earnings Call

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. And the remaining 10 that we will be divesting to the (inaudible), when this would be, in terms of the completed, in terms of the execution front, by FY '26, will it be entirely completed?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. Got it. And sir, do we have any tax-related -- what we report on our standalone P&L level, this nine-month also, that tax number is on the lower side. So normal is around 25%. But we have 20.7%. So is there any benefit or it is just mathematically where it is coming? So normally, one can look at only the 25% tax rate.

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. But now, in the fourth quarter, we will not be having any transfer because already just 1% is left in the last eighth asset. So whatever will be, it will be in the FY '26 that we will be transferring the seven assets?

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

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Sir, just to, clarify, you mentioned that the DBL infra date is reduced by INR81-odd crore and is around INR565 crore?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. And then for that INR80-odd crore reduction in the fourth quarter.

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. Got it. And second, sir, in terms of the current 16,600 current order book, how much of the value where we have still not received the appointed date?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. Got it. And sir, in terms of the inventory level, obviously, that's the main thing we are also trying to reduce. But it is still not happening to the way it should be. The revenue is on the lower side of absolute or maybe in the day's terms also it looks similar. So is there a thing that we are planning to maybe not have some part of the inventory which maybe because now we are not having a kind of a a growth that needs such inventory even for next year also when we are seeing the similar kind of a number? Then why not to release some working capital from the inventory?

Question: Shravan Shah - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. And so this, when we will be listing, so it will have the Alpha alternative (inaudible) assets. So whatever initially will be where we have achieved the PCOD that will get listed and then when the other assets achieve the PCOD it will be a part of that in that's the way are entirely the 18 together will initially get the -- will be part of the InvIT and get listed.

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

Question: Pranav Furia - Antique Stockbroking Ltd. - Analyst : Thank you for the opportunity, sir. I just wanted to understand, sir. Is there any vertical specifically that you can target so that you know the timelines between an (inaudible) and the actual execution is lower can help you with INR526 crore revenues itself.

Question: Pranav Furia - Antique Stockbroking Ltd. - Analyst : Got it, sir. So sir, could you just highlight one or two sectors from the current order book which are the lowest time gap between execution historically?

Question: Pranav Furia - Antique Stockbroking Ltd. - Analyst : Got it. That's it from my side.

Question: Sanjay Parekh - Sohum Asset Managers Pvt. Ltd. - Analyst : So one is in a coal subsidiary, we've done very well. Is this for further contracts or I mean we are at 25 million run rate which is commendable and our target is to go to 50 million. So the question I have is can we get more contracts on this? And secondly, are we on a run rate of 50 million plan that we have?

Question: Sanjay Parekh - Sohum Asset Managers Pvt. Ltd. - Analyst : Sure. Secondly, our target of final in which value of our share of INR4,000 crore in 2.5 years, are we on track on that?

Question: Sanjay Parekh - Sohum Asset Managers Pvt. Ltd. - Analyst : Yeah. So it could be INR200 crore, INR300 crore here or there. But broadly, the price-to-book multiples that we've agreed upon broadly should take us through a final equity value of INR3,700 crore to INR4,000 crore. Unidentified Corporate Representative (spoken in foreign language) altogether, BPC will change and accordingly BCC will be changed. (spoken in foreign language)

Question: Sanjay Parekh - Sohum Asset Managers Pvt. Ltd. - Analyst : Okay. Got it. Perfect. And the last one, you did discuss on order inflows not happening and of course, a bit of it is government related. So because ours is a high fixed cost of our own equipments, our own manpower which works in a cycle which is really roaring because your efficiency and margins can get better. But if you were to go asset-light and people-light over a period because we are cyclical in order inflows, the industry is in a cyclical way, so can we do it or it is difficult to change over a period of time, not one year, but three to five years? Is it possible or no? Unidentified Corporate Representative (spoken in foreign language)

Question: Sanjay Parekh - Sohum Asset Managers Pvt. Ltd. - Analyst : Okay. Last one (inaudible) and all the populist schemes (spoken in foreign language) NHAI and MORTH (spoken in foreign language) do you think (spoken in foreign language) things that got stuck and will take time or you think that also you are seeing state-wise things getting better? Unidentified Corporate Representative (spoken in foreign language) usually central government or central government funding this project (spoken in foreign language).

Question: Vignesh Iyer - Sequent Investments - Analyst : Thank you for the opportunity, sir. So my first question is on the coal part of the business, right? I was checking our H1 numbers, it was around 10 million tonnes which is now increased to 17.5 million tonnes which is a huge increase, if I have to say. I understand that there is seasonality in the business. But can I understand what part of our sales and EBITDA for quarter three FY '25 accounts from coal?.

Question: Vignesh Iyer - Sequent Investments - Analyst : Okay, sir. Sir, also coming to the interest part of it, I heard you earlier when you said that there was some increase in working capital primarily due to receivables. So sir, I was going through the last year's annual report and I see there are -- under the (inaudible) schedule, there are certain receivables which are more than three years which accounts to around INR1,950 crore. And since then, from quarter one, quarter two, we have consistently seen increase in our interest outlay at the consolidated level. Can I understand how the (inaudible) schedule has panned out in the last nine months and what kind of numbers can we look forward to in the FY '25 annual report?

Question: Vignesh Iyer - Sequent Investments - Analyst : Okay, sir. Got it, sir. That's all from my side and all the best, sir.