Comments
Bhopal-based road developer Dilip Buildcon has more than doubled its net profit to ₹255 crore in the first quarter of the current year as against ₹122 crore in the corresponding period of the last fiscal.
For the quarter ended June 30, 2018, the company has registered a 46 per cent growth in revenue at ₹2,445 crore (₹1,666 crore). The increase in revenue was primarily on account of conversion of order book through execution, the company said.
The company’s board on Tuesday approved raising ₹2,000 crore via NCDs and commercial papers on private placement basis.
According to Rohan Suryavanshi, strategy andplanning head, Dilip Buildcon, this will be an annual exercise for the company in line with SEBI’s proposal that large corporations should raise 25 per cent of their borrowings from the corporate bond market.
Order boom
The company won new orders worth ₹2,744 crore during the quarter. Its net order book at the end of the quarter stood at ₹24,000 crore with majority of orders being in road sector.
Mining emerged as another large business for the company in the recent past, contributing around 6 per cent to the order book. Earlier this month, Dilip Buildcon had secured two major orders in the mining sector. Last week, the company announced receiving Provisional Letter of Award (LOA) from Punjab State Power Corporation for the contract of Mine Developer and Operator of Pachhwara, Central Coal Mine in Jharkand, worth over ₹32,000 crore for 55 Years. The company has also been declared lowest bidder for a ₹717 crore mining project in Madhya Pradesh. According to Suryavanshi, the company’s strategy will continue to be “asset-light”. It will offload completed projects and those under development provided it can realise a good value and will focus on EPC activities.
“Asset ownership business cannot be mixed with EPC businesses as both have different risk profiles and return on investment and capital,’ he added. Last year, the company had divested its portfolio of 24 road assets of ₹10,500 crore to the Chhatwal Group Trust, which runs the Mumbai-based Shrem Group. The deal was estimated at ₹1,600 crore.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.