Dilip Buildcon Ltd Q4 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 : Sir, first, I wanted to understand on the order inflow front. So in the opening remarks, you have mentioned that we are looking at INR1 lakh crore kind of opportunity. So a couple of things to understand. First, if you can help us broadly -- first is, how many value of orders, we have bidded where outcome is yet to come? Second, out of this INR1 lakh-odd crore, how much would be from the road? And also, are we looking at the -- obviously, the HAM and the BOT toll also?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Okay. And also in terms of -- so now for this year, FY26, total, how much more -- obviously, for the last 2 years was muted on order inflow. So now how much order inflow are we looking at? And at the same time, why I'm trying to understand in terms of the HAM and toll because the actual execution will take a much longer time, at least 9-odd months to start once after the awarding. So in terms of the guidance that we are looking at 5% to 7% decline in FY26. So also trying to understand if we are more looking on the BOT toll or a HAM, maybe this could be -- can have even slightly more decline and even FY27 also have some impact. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 09, 2025 / 3:30AM, DIBL.NS - Q4 2025 Dilip Buildcon Ltd Earnings Call

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : No. Just the one thing that for this year, how much are we looking at in terms of the order inflow for full year?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Okay. And on the stand-alone margin, you mentioned 10% to 11% that -- the margin that now should be the case for even for ongoing FY26 and going forward also?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Got it. And now on the debt front, you mentioned that further another INR500 crores reduction will be there in FY26. So by FY27, what our stand was, we will be a net debt-free. So that remains intact?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Got it. Got it. And sir, on the MDO front, are we -- is there a way that we will be setting the profitability number or any value unlocking that are we looking for MDO assets?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Okay. Sir, I have two, three questions, but if there are more questions, I can come in queue. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 09, 2025 / 3:30AM, DIBL.NS - Q4 2025 Dilip Buildcon Ltd Earnings Call

Question: Deepak Purswani - Swan Investments - Analyst : Yes. First of all, congratulations especially on the debt reduction and MDO performance. Sir, firstly, I wanted to check it out -- I wanted to seek some clarification. If I were to look into the order book, last year at the beginning of the year, we had an order book of INR17,400 crores. And this year, at the end of the year, we have INR15,000 crores and revenue has been to the extent of INR9,000 crores. So implied order inflow appears to be the INR6,500 crores, whereas in the presentation, we had reported INR2,100. So just wanted to check whether has there been any change in scope of work in the existing order book? That's the reason there is a deviation in overall listing?

Question: Deepak Purswani - Swan Investments - Analyst : Okay. And secondly, sir, just continuing on the order inflow point of view, like you mentioned about the bid pipeline of INR1 lakh crores. And yes, I mean just wanted to get your sense -- I mean, this bid pipeline was also there in the month of December, and there was a -- I mean, we do understand there has been a delay from the ministry level in terms of awarding. But you can give a broader sense what is causing this delay at the first place and whether this problem is getting resolved? And how confident are we -- I mean, incrementally, this would flow it out probably in the next 6 to 12 months, the order inflow guidance of INR15,000 to INR20,000 crores. That's a part one. Secondly, if you can also give the breakup of this INR15,000 crores to INR20,000 crores, what is the awarding we are expecting from the road sector and which are the new verticals which would contribute in terms of the order inflow?

Question: Deepak Purswani - Swan Investments - Analyst : Yes. INR15,000 crores to INR20,000 crores which we are expecting, what is the broader segmental breakup we are looking at out in terms of the overall awarding of this --

Question: Deepak Purswani - Swan Investments - Analyst : Thirdly, just continuing on the order inflow point, we also mentioned there is a 78 new tunnel projects worth INR1.1 lakh crores, which are also coming out. If you can also give some broader sense on this in terms of the RFQ criteria for these projects as well as I think this project would also require some CapEx investment to the extent of TBM. So if you can give some broader sense, I mean, what is the CapEx we are looking out for this year? Or are we incrementally looking out for buying some TBM machine to bid these projects? Or how should we look into all these?

Question: Deepak Purswani - Swan Investments - Analyst : And also continuing on that part, I mean, if you can also give a broader sense in terms of the working capital, how should we look into it? And I mean, last quarter, we had INR100-odd crores the Jal Jeevan mission. I mean this time, it appears to be the relatively better working capital. If you can give us just quantum what has been the reduction in terms of the debtor at the current juncture and whether the execution and payment cycle has normalized in the Jal Jeevan Mission project? And how should we see the opportunity going ahead in this segment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 09, 2025 / 3:30AM, DIBL.NS - Q4 2025 Dilip Buildcon Ltd Earnings Call

Question: Deepak Purswani - Swan Investments - Analyst : Okay. And if you can also give the quantum of the debtors from the Jal Jeevan mission at the end of this year?

Question: Deepak Purswani - Swan Investments - Analyst : Sir, if you can give the debtors outstanding for Jal Jeevan mission at the end of this year?

Question: Deepak Purswani - Swan Investments - Analyst : Sure, sure. And finally, just final question from my end. In terms of the interest expenses, with the reduction in the debt, how should we look into interest expenses for FY26?

Question: Prateek Bhandari - AART Ventures - Analyst : I wanted to understand about the Siarmal coal mine. So what I wanted to understand was once we are done with the coal production and we are able to clock that 50 million metric tonnes per annum, what are the further plans do we have in place? And what kind of grades of coal are we extracting from there?

Question: Prateek Bhandari - AART Ventures - Analyst : You mentioned about the coal handling plant that should be built --

Question: Prateek Bhandari - AART Ventures - Analyst : And what would be the estimated CapEx for the same?

Question: Prateek Bhandari - AART Ventures - Analyst : All right. And what kind of the grades of coal are we expecting from that Siarmal coal mine? What is the grade --

Question: Prateek Bhandari - AART Ventures - Analyst : G11.

Question: Prateek Bhandari - AART Ventures - Analyst : Is it only the one category of grade? Or are we expecting other categories as well?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Sir, two, three things. First, in terms of the remaining Alpha 10 assets that we'll be transferring. So it will be -- this year would be seven assets and the next year would be a three assets. That's the way one can look at?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Okay. Got it. And sir has mentioned that INR400 crores of DIPL debt, so that's the DBL --

Question: Parikshit Kandpal - HDFC Securities Institutional Research - Analyst : Sir, my first question is on NHAI ordering. So when do we expect a pickup in NHAI ordering, so which quarter or which -- like first half, second half? So how do you think this year will be for NHAI ordering?

Question: Parikshit Kandpal - HDFC Securities Institutional Research - Analyst : Second quarter. Okay. And do you think -- I mean, any sense on what kind of measures government is planning or they've already taken in terms of like the smaller players either in terms of like increasing the qualification criteria, making it more stringent. So what do you think would change this competitive intensity in the near to midterm?

Question: Parikshit Kandpal - HDFC Securities Institutional Research - Analyst : The other question is on the diversification beyond the existing segments. So road has been a nonstarter for the last two years. Nothing much is happening there and outlook also right now looks a little uncertain given there has been no major awarding from NHAI. There has been some state awards. I think we've not been able to get these awards from the state. So in absence of these large segment in ordering, so what are the other segments you're looking at to mitigate the impact of slowdown in those awards?

Question: Parikshit Kandpal - HDFC Securities Institutional Research - Analyst : Sir, anything on the T&D side or the building segment, which can add incrementally to the new order...

Question: Parikshit Kandpal - HDFC Securities Institutional Research - Analyst : And on transmission side, anything on transmission, battery storage-related HAM projects, anything on that side or solar EPC?

Question: Parikshit Kandpal - HDFC Securities Institutional Research - Analyst : And renewable side, so basically, the question was what could be the opportunity for us in the renewable, which seems to be a bigger theme now? And how do we want to play that theme? So either both on investment on equity side as well as on the EPC side?

Question: Parikshit Kandpal - HDFC Securities Institutional Research - Analyst : Anything being evaluated in international markets?

Question: Aakash Raval - Buoyant Capital - Analyst : Sir, I have just one question regarding the coal MDO part. So our execution has been very good on the coal MDO front. So are we looking to bid for other coal MDO projects, which are there in the pipeline going forward?

Question: Sanjay Parekh - Sohum Asset Managers - Analyst : Yes. No, so my questions were answered around the coal MDO, which my colleague asked, the new projects there, you clearly have done exceptionally well. And so that is answered. One more thing, micro is -- order book is INR36 crores, INR26 crores of mining, while both the coal projects is INR28 crores, INR36 crores. So the balance -- is there an external mining contract you have? And can you have more of them?

Question: Sanjay Parekh - Sohum Asset Managers - Analyst : Okay. Great. That's very, very clear. The second thing is INR14,923 order is executable over what period? And what part of this revenue could come in '26 and what part could come in '27?

Question: Sanjay Parekh - Sohum Asset Managers - Analyst : Got it. Sir, just if it's possible, that of this INR14,923 crores, what is -- I mean, would it be INR7,000 crores, INR7,500 crores, which is executable this year, broadly also we'll find. I mean, assuming -- I mean, we surely would win new orders. What I'm saying is for the current order book, what would be the executable revenue this year and next year, if possible?

Question: Sanjay Parekh - Sohum Asset Managers - Analyst : So very small order I understand will flow to '28. Largely, this order book will be executed in two years. Can we say that?

Question: Vishal Periwal - Antique Stockbroking Ltd. - Analyst : Sir, on this profitability for MDO, though you did mention like we are not sharing the numbers. But the numbers which you have shared, say, consolidated minus, if you do a stand-alone number, will that be fair to say that the remaining part is coal MDO that is running through in the business?

Question: Vishal Periwal - Antique Stockbroking Ltd. - Analyst : Okay. And will you have that number, sir? I mean what would be their revenue share on a quarterly basis or anything even on an annual basis, if you -- will that be visible? The HAM basically, the revenue?

Question: Vishal Periwal - Antique Stockbroking Ltd. - Analyst : Okay. Okay. So coal MDO is INR265 crores at a PAT level.

Question: Vishal Periwal - Antique Stockbroking Ltd. - Analyst : No, sorry, I just missed -- you mentioned INR265 crores is what number, sir?

Question: Vishal Periwal - Antique Stockbroking Ltd. - Analyst : MDO. Okay. Okay. Okay. Got it. Got it. And then from a revenue front, I think though in the PPT, we have mentioned like the total revenue which one can get from, say, Pachhwara and that other block and then the total coal, which can be evacuated. So in terms of rupees per tonne, will that be a fair number to take when we are coming to an annual sort of revenue for next year or maybe like this year?

Question: Vishal Periwal - Antique Stockbroking Ltd. - Analyst : Okay. Sorry. Yes, I'll just repeat. So I think in the presentation, we have given two, three numbers in terms of like total revenue, which these mines will give us over a period of next 10-, 15-odd years and also the total coal that we can extract from these mines. So basically, on that metrics, can we just work on that realization part and then we can come to our revenue for FY25 and '26 number. So the reason I'm asking is like is there any escalation which has been there, which we have built in to come to that consol revenue, which is we have given in the PPT for the coal MDO?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Sir, is it now possible that we have shared this INR265 crores PAT for MDO business for FY25? Is it possible to share the revenue and EBITDA?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : So I was asking on FY25, what's the MDO revenue and EBITDA in FY25?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Okay. Got it. Second, just wanted to clarification DBL Infra date as on March is INR400 crores?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Okay. And we are planning to repay in this year itself?

Question: Shravan Shah - Dolat Capital Market Pvt Ltd. - Analyst : Okay. And sir, this other income of INR74-odd crores in FY25, how much is the Shrem InvIT dividend or distribution?