Dilip Buildcon Ltd. · NSE:DBL
Dilip Buildcon — Q2 FY2019 Earnings Presentation
57 slides from Dilip Buildcon's earnings presentation, Nov 13, 2018
Slide 1: Dilip Buildcon Limited – Investor Presentation filing letter
DILIP BI,'ILDCON I.IMITED INFRASTRUCTURE & BEYOND Datcl - Novcmbcr 13,20t8 To To BSE Limir€d Nalional Stock Exchange of hdia Ltd. Listing DQartment Exchange Plaz4 C- I , Block G P.J Tower, Dalal Steei BandraKurls Complex, Mumbai - 400001 Bandra (E), Mumbai - 400051 Stock Symbol -540047 Stoct Symbol
Slide 2: Q2FY19 Earnings Presentation
Q2FY19 Earnings Presentation Dilip Buildcon Limited
Slide 3: Safe Harbour
Dilip Buildcon Limited All statements included or incorporated by reference in this presentation, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our
Slide 4: Table of Content
Dilip Buildcon Limited Table of Content 01 Financial 02 Strategy & 03 Company Highlights Business Model Overview Page : 04 Page : 33 Page : 39 Earnings Presentation | June 2018 3
Slide 5: Financial Highlights
Dilip Buildcon Limited Financial Highlights Earnings Presentation | June 2018 4
Slide 6: Results Summary – H1FY19
Dilip Buildcon Limited Results Summary – H1FY19 Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) 26% 41% 3,356 40,820 32,516 24% 7,361 2,379 5,913 H1FY18 H1FY19 H1FY18 H1FY19 H1FY18 H1FY19 Contract Revenue Breakup (₹ mn) Roads & Bridge Irrigation Urban Development Mining 31% -62% 882% -55% 2% H1
Slide 7: Results Summary – Q2FY19
Dilip Buildcon Limited Results Summary – Q2FY19 Revenue (₹ mn) EBITDA (₹ mn) Profit after Tax (₹ mn) 3.3% 15,849 16,365 1,158 -31% 802 2% 2,884 2,943 Q2FY18 Q2FY19 Q2FY18 Q2FY19 Q2FY18 Q2FY19 Contract Revenue Breakup (₹ mn) Roads & Bridge Irrigation Urban Development Mining 4% -91% 817% -55% -1% Q2F
Slide 8: Revenue Split between H1 and H2 for last few years
Dilip Buildcon Limited Revenue Split between H1 and H2 for last few years Based on 70% Guidance 62% 60% 57% 58% 59% 50% 43% 42% 41% 40% 38% 30% 20% 10% 0% 2015-16 2016-17 2017-18 2018-19 H1 H2 Earnings Presentation | September 2018 7
Slide 9: Key Highlights (1/2)
Key Highlights (1/2) • Received final sanction for 8 projects & in-principle sanction for 3 projects out of 12 HAM projects till date, balance 1 project is in final stage • Won MDO contract of Pachhwara Central Coal Block worth Rs. 321,560 Mn during Q2 2018-19 to be executed over 55 years • Won Jaya
Slide 10: Key Highlights (2/2)
Key Highlights (2/2) • Received 'Fastest Growing Construction Company (Large) Award' and 'India's Top Challengers Award 2018' at the 16th Construction World Global Award 2018 • Won four prestigious awards at the 8th Annual Construction Week – India: • Infrastructure Company of the year • Infrastruct
Slide 11: Result Update - Standalone
Dilip Buildcon Limited Result Update - Standalone (₹ mn) Particulars Q2FY19 Q1FY19 Q2FY18 YoY (%) H1FY19 H1FY18 YoY (%) Revenue 16,365 24,454 15,849 3.26% 40,820 32,516 25.53% Operating expenses 13,422 20,037 12,965 3.53% 33,459 26,603 25.77% EBITDA 2,943 4,418 2,884 2.03% 7,361 5,913 24.48% EBITDA
Slide 12: Net Working Capital Days – Quarterly
Dilip Buildcon Limited Net Working Capital Days – Quarterly 160 137 140 127 127 124 131 119 120 119 113 103 102 96 100 89 85 80 79 77 73 71 72 63 61 62 60 41 95 91 40 37 86 65 71 59 60 53 48 20 0 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 Debtor Days Inve
Slide 13: Order Book
Dilip Buildcon Limited Order Book Order Book (₹ mn) 47% DBL’s Own HAM 238,881 * 239,351 * 53% EPC 175,683 107,787 74,747 51,609 FY 14 FY 15 FY 16 FY 17 FY18 Q2FY19 *Excluding GST Order Book – By Sector 211,504 88.37% 11.26% 26,955 0.37% 892 Roads, Highways & Bridges Mining Urban Development Earnings
Slide 14: Order Book
Dilip Buildcon Limited Order Book Order Book – By Client Order Book – Geographical Split Chhatisgarh, 0.21% Odisha, 4% West Bengal, 1% Haryana, 0.10% 73% Jharkhand, 6% 7% Telangana, 5% Maharashtra, 7% 2% 2% 2% 7% 29% 0.37% NHAI MORTH NORTHERN SINGARENI GOVT(UNDERTAKING) AAI PUNJAB STATE STATE Goa, 4
Slide 15: Mining Revenues – Growth Trajectory
Dilip Buildcon Limited Mining Revenues – Growth Trajectory (₹ mn) CAGR 40% 2,450 2,178 2,028 1,927 1,857 1,833 709 469 89 132 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Earnings Presentation | September 2018 14
Slide 16: Asset Utilisation
Dilip Buildcon Limited Asset Utilisation 4.71 4.76 4.24 3.04 Asset Utilisation 2.89 increased due to 2.21 superior execution and operational excellence 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30.06.2018 30.09.2018 Rs. Mn 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30.06.2018 30.09.2018 TTM Reven
Slide 17: Net Debt to Equity Ratio - Quarterly
Dilip Buildcon Limited Net Debt to Equity Ratio - Quarterly 1.43 Net Debt to Equity ratio 1.32 1.35 at a healthy position 1.30 1.30 1.24 1.14 1.14 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 Rs. Mn 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.
Slide 18: Net Debt to Equity Ratio – Quarterly (Working Capital & Equipment Debt)
Dilip Buildcon Limited Net Debt to Equity Ratio – Quarterly (Working Capital & Equipment Debt) 0.85 0.87 0.79 0.80 0.76 0.77 0.64 0.69 0.57 Working Capital Debt/Equity 0.53 0.48 0.53 0.50 Equipment Debt/Equity 0.47 0.50 0.45 Net Debt/Equity 1.43 1.32 1.35 1.30 1.30 1.24 1.14 1.14 31.12.2016 31.03.20
Slide 19: Net Debt to Equity Ratio – Yearly
Dilip Buildcon Limited Net Debt to Equity Ratio – Yearly 2.24 2.27 Net Debt to Equity ratio is on a downward trend with increase in revenue and will continue to improve further 1.32 1.24 1.14 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30.09.2018 Rs. Mn 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30
Slide 20: Revenue vis-à-vis Net Debt
Dilip Buildcon Limited Revenue vis-à-vis Net Debt (₹ mn) 85,917 77,614 51,091 41,011 TTM Revenue Net Debt 26,301 34,473 27,936 24,068 24,497 21,870 31.03.2015 31.03.2016 31.03.2017 31.03.2018 30.09.2018 Net Debt increased nominally whereas Revenue more than tripled in last four years, which shows im
Slide 21: Projects won in Q2FY19
Dilip Buildcon Limited Projects won in Q2FY19 Contract Value Name of Project Name Type State excluding GST LOA Date Remarks Employer (₹ mn) Northern 78.58 MBCM for Overburden Removal – Jayant OCP Project Singrauli Mining MP Coalfield Limited 7,175 05.09.2018 3 years (NCL) Punjab State 7 MTPA (Millio
Slide 22: Projects won after Q2FY19
Dilip Buildcon Limited Projects won after Q2FY19 Contract Value Project Name Type State Name of Employer excluding GST LOA Date (₹ mn) Water Resource Navnera Barrage EPC Rajasthan 5,366 04.10.2018 Division, Kota Madhya Pradesh Bhopal Metro between AIIMS and Subhash Nagar Metro Madhya Pradesh Metro R
Slide 23: Projects won during FY19 till date
Dilip Buildcon Limited Projects won during FY19 till date Contract Value Project Name Type State Name of Employer excluding GST LOA Date (₹ mn) Bellary to Byrapura Section of NH-150A HYBRID Karnataka NHAI 8,875 01.06.2018 Nagpur Mumbai Super Communication Expressway EPC Maharashtra MSRDC 15,625 30.0
Slide 24: Projects Completed after Q2FY19
Dilip Buildcon Limited Projects Completed after Q2FY19 Scheduled Actual Early Type of Cost of work Date of Name of the Employer Project Name State Length (km) Completion Completion work (₹ mn) Completion Date Days with EOD MORTH Majalgaon - Kaij Maharashtra EPC 2880 57.52 31.07.2019 24.10.2018 280 M
Slide 25: Shrem Deal (1/2)
Dilip Buildcon Limited Shrem Deal (1/2) The company has signed a Term Sheet with Chhatwal Group Trust on 24th August, 2017 in respect of divestment of its entire stake in the 24 of its subsidiary companies (SPVs) The sale is for 14 operational projects, and 4 under construction projects & 6 HAM proj
Slide 26: Shrem Deal (2/2)
Dilip Buildcon Limited Shrem Deal (2/2) (₹ mn) FY17-18 H1 18-19 H2 18-19 Q1 19-20 Particulars Total Actual Actual Projected Projected Money to be received by Dilip Buildcon Limited from Shrem 11,800 5,700 1,600 3,190 1,310 Group Direct Investment in SPV’s by Shrem Group 4,220 320 - 2,650 1,250 Total
Slide 27: Status of under construction HAM projects sold to Shrem Group
Dilip Buildcon Limited Status of 6 under construction HAM projects sold to Shrem Group Plan as per CA Actual Completion Early % of work Payment Milestone Appointed Sr.No Project Achieved done as on (Grant) Date Date Days Date Days (Days) 31.10.2018 4th PM, 75% Physical 1 Lucknow Sultanpur 08-May-17
Slide 28: Key Outstanding Hybrid Projects – Recently Won
Dilip Buildcon Limited Key Outstanding Hybrid Projects – Recently Won Awarding Total Project Project name Type State COD Length (Kms) Equity Annuity Authority Cost DBL Chandikhole Bhadrak Highways Pvt. Ltd. Hybrid Odisha NHAI AWAITED 74.50 1,212.50 Annuity linked with PI 12,599 DBL Anandpuram Anakap
Slide 29: Equity commitment for recently won HAM projects
Dilip Buildcon Limited Equity commitment for recently won HAM projects (₹ mn) Requirement Mar-19 Mar-20 Mar-21 Investment for 12 new HAM projects 13,210 6,600 3,305 3,305 Less :- Fund Received From Shrem In DBL (6,100) (4,790) (1,310) - Net Investment Required By DBL 7,110 1,810 1,995 3,305 Earnings
Slide 30: Status of recently won HAM projects
Dilip Buildcon Limited Status of recently won HAM projects 8 Projects – Final Sanction Received 3 Projects – In-principle sanction received 12 HAM Projects 1 Project Financial Closure to be completed within the scheduled time Earnings Presentation | September 2018 29
Slide 31: Key Outstanding EPC Projects
Dilip Buildcon Limited Key Outstanding EPC Projects Schedule Date of Outstanding Order Project name Type Contract Value Length (Kms) LOA Date Date of Start Completion with Book EOD Vijayawada–Machilipatnam Road 7,407.00 1,254.99 64.61 19.01.2016 24.11.2016 23.11.2018 Ghaghra Bridge to Varanasi Road
Slide 32: Key Outstanding EPC Projects – Recently Won
Dilip Buildcon Limited Key Outstanding EPC Projects – Recently Won Schedule Date of Outstanding Order Project name Type Contract Value Length (Kms) LOA Date Date of Start Completion with Book EOD Seoni–MP/MH Border Road 6,518.57 6,518.57 29.29 17.01.2018 10.08.2018 08.08.2020 Karodi to Telwadi Road
Slide 33: 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 LOA Date Date of Start Book Completion Parallel Taxi Track and associated civil & electrical works at Urban Dev 1,250.10 892.38 May-17 May-17 May-19 Dabo
Slide 34: Standalone Financial Highlights
Dilip Buildcon Limited Standalone Financial Highlights Earnings Presentation | June 2018 33
Slide 35: Standalone Profit & Loss – Half Yearly
Dilip Buildcon Limited Standalone Profit & Loss – Half Yearly (₹ mn) Standalone Particulars Highlights Q2FY19 Q2FY18 Revenue from Operations 40,600 32,459 • Revenue increased by 26% Y-o-Y Other income 219 58 Total Income 40,820 32,517 • Reduction in Finance cost from 6.82% Expenses to 5.95% in propo
Slide 36: Standalone Profit & Loss - Quarterly
Dilip Buildcon Limited Standalone Profit & Loss - Quarterly (₹ mn) Standalone Particulars Highlights Q2FY19 Q2FY18 Revenue from Operations 16,237 15,818 • Revenue increased by 3.26% Y-o-Y Other income 128 31 Total Income 16,365 15,849 Expenses Cost of materials consumed 13,158 13,274 Changes in inve
Slide 37: Standalone Balance Sheet - Quarterly
Dilip Buildcon Limited Standalone Balance Sheet - Quarterly (₹ mn) Standalone Particulars Q2FY19 Q1FY19 Q2FY18 ASSETS Non-current assets (a) Property, plant and equipment 17,814 17,906 16,913 (b) Other Intangible assets 24 27 35 (c) Intangible assets under development 208 193 - (d) Financial assets
Slide 38: Standalone Balance Sheet - Quarterly
Dilip Buildcon Limited Standalone Balance Sheet - Quarterly (₹ mn) Standalone Particulars Q2FY19 Q1FY19 Q2FY18 EQUITY AND LIABILITIES Equity (a) Equity share capital 1,368 1,368 1,368 (b) Other equity 26,394 25,758 19,376 Total equity 27,762 27,125 20,744 Liabilities Non-current liabilities (a) Fina
Slide 39: Working Capital
Dilip Buildcon Limited Working Capital (₹ mn) Standalone Particulars Q2FY19 Q1FY19 Q2FY18 Debtors Days 53 59 61 Inventories Days 91 86 103 Total 144 145 164 Less: Creditors Days 48 60 37 Working Capital Days 96 85 127 Inventory Stock 20,301 19,764 14,131 WIP 1,042 347 3,989 Total 21,343 20,111 18,12
Slide 40: Strategy & Business Model
Dilip Buildcon Limited Strategy & Business Model Earnings Presentation | June 2018 39
Slide 41: 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 42: 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 43: Backward Integration
Dilip Buildcon Limited Pipe Rolling Machine Electric Pole Bus Shelter pto Ø200 X 8 Mm Pole blank cutting machine Metal Beam Crash Metal Beam Crash 14MTR X 3 MTR Gantry Barrier Barrier plazma Backward Integration Earnings Presentation | September 2018 42
Slide 44: Execution Strategy
Dilip Buildcon Limited Execution Strategy Differentiated business model with complete control over execution Earnings Presentation | June 2018 43
Slide 45: Investment Rationale
Dilip Buildcon Limited Investment Rationale Execution track Sustainable growth Robust order book In-house No dependence on Experienced Process and system record Capabilities sub-contractors leadership team driven company Strong performance Diversification by supported by with high reliance High qual
Slide 46: Company Overview
Dilip Buildcon Limited Company Overview Earnings Presentation | June 2018 45
Slide 47: 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 48: 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 49: Execution Team
Dilip Buildcon Limited Mr. R S Garg Mr. Raja Ghosh Mr. Abhishek Shrivastav Vice President - Finance Interim CFO Head – CS and Compliance Officer Execution Team Mr. Atul Joshi Mr. Devesh Sharma Mr. Pradeep Harel Associate Vice DGM – Legal GM – Mechanical President – Structure Earnings Presentation |
Slide 50: Execution Team
Dilip Buildcon Limited Mr. P. Marimuthu Mr. Nitesh Kumar Sharma Mr. Badal Chandra Sardar GM – System Admin & Fuel GM – Billing & Planning DGM – Survey & Design Monitoring Execution Team Mr. Nitin Shrivastava Mr. B B Kameshwara Rao Mr. Kamalakanta Mahakul Associate Vice-President – Bidding GM – QA&QC
Slide 51: Milestones
Dilip Buildcon Limited Declared as ‘selected bidder’ for EPC Bought first projects in Andhra Pradesh 1996 stone crusher 2006 Incorporated amounting to ₹7,407 mn from NHAI 2017 2018 Goes public 2016 DBL achieves a milestone DBL achieves a record topline Business of M/s Dilip Builders with INR 51,091
Slide 52: Awards, Accreditation & Accolades
Dilip Buildcon Limited Awards, Accreditation & Accolades Highest Upliftment of Bitumen by Indian Oil in 2013 Single Largest Customer of BKT OTR Tires in India in 2015 Esteemed Customers of Metso NW Series Portable Plants Best Institution Account in India by CEAT Ltd. in H1 2015-2016 Most Valued Cust
Slide 53: Awards, Accreditation & Accolades
Dilip Buildcon Limited Awards, Accreditation & Accolades Commitment for Products and Services by Ashok Leyland LEED Certification by Indian Green Building Council in 2014 Purchase of Volvo Trucks and Construction Equipment in 2016 Fastest Growing Construction Company Infrastructure Person of the Yea
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: Business Division
Dilip Buildcon Limited Business Division Roads & Highways Irrigation Urban Development Mining o State & National Highway o Dams o Water supply projects o Coal Mining o City Roads o Canals & Tunnels o Buildings o Bridges & Culverts o Other Residential o Operation & Maintenance o Operation & Mainten
Slide 56: Pan India Project Execution Capability
Dilip Buildcon Limited State Completed Ongoing Gross Ongoing Net AP 8,616 34,679 18,603 Pan India CG - 9,846 506 Project Execution Himachal GOA - 15,281 10,255 Pradesh Capability Punjab GUJ 9,814 - - Haryana Haryana 60 4,577 241 HP 1,187 - - Rajasthan Uttar Pradesh JHARKHAND 3,330 18,838 13,361 Guja
Slide 57: Thank You
Dilip Buildcon Limited S-ANCIAL GLOBAL SOLUTIONS PVT. LTD. (Investor Relations) Plot No. 5, Inside Govind Narayan Singh Gate, Chuna Bhatti, 215, Shivshakti Industrial Estate, J. R. Boricha Marg, Lower Kolar Road, Bhopal Madhya Pradesh - 462 016 Parel (E), Mumbai - 400 011 0755 - 4029999 0755 - 40299