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Dilip Buildon: Q1 FY25 concall highlights

Order book:

• In Q1, got only 1 order for railway of Rs. 926 cr. Confident of receiving Rs. 15000 -16000 cr order for the full year.
• ~Rs. 5000 cr order book will be road. (2/3rd EPC : 1/3rd HAM)
• Ventured into optical fibre laying. Have bid 16 project worth ~ Rs. 50000 cr along with JV partner.
• Currently bid out < Rs. 25000 cr which are yet to open.

Debt:

• Expecting standalone debt to reduce by 1000 cr by end of FY25
• As on 31st Mar 24, total debt (standalone) was 1515 cr. In Q1, debt increased by Rs. 700 cr. Out of this total, only Rs. 140 cr is term debt. So reduction will happen in working capital loan. Current working capital is Rs. 2226 cr, which will reduce to 1000 cr by year end. By FY26 will become net cash company.
• However, there will be debt at project level
• Standalone debt will be nil, however there will be ~Rs. 2000 cr debt in MBO project. If they bid for HAM projects, they will be required to take debt which will be for 2.5 – 3 yrs, till the time project is sold / transferred to InvIT.
• Interest cost will be Rs. 350 – 400 cr for FY25

Asset transfer:

• Completed the deal with shrem group. Transferred last asset. Will continue to provide O&M services.
• In Alpha alternatives deal, progressing as per plan. So far transferred 26% in 4 assets out of the deal of 18 assets. Received Rs. 161 Cr.
• Have written to SEBI for formation of InvIT and already received initial remarks. Should be able to create it by end of this FY.

DBL 2.0:

• Aim to diversify across 8-10 sectors.
• To achieve net debt (standalone) in next 2 yrs.
• To have short term and long term assured cash business and industry leading return ratios.

Guidance:

• FY25 may see a degrowth of ~5%.
• FY26 will be good but exact growth guidance will give by FY25-end based on orders in hand that time.
• For FY25 margins, earlier guidance was 12-14% but due to degrowth in revenue, margins will be ~11-12% (similar to FY24).
• FY25 total capex standalone will be Rs. 150-170 Cr of this Rs. 30 cr was done in Q1.