Dilip Buildcon gains 4 per cent on emerging as L1 bidder for HAM project in Bihar

Infrastructure developer, Dilip Buildcon on Saturday, informed the bourses that the company has emerged as an L1 bidder for a new hybrid annuity model (HAM) project in Bihar.

The scope of the project includes the construction and upgradation of NH-131A (length-49 kms) in Bihar on the hybrid annuity model. The project cost is Rs 1,905 crore and would be completed in 24 months.

The company’s current order book stands at Rs 26,115.2 crore out of which, orders worth Rs 8,910 crore have been received in FY21 and the company further expects to secure orders worth Rs 5,000 crore for the rest of FY21. The company’s order book mix comprises of roads-49.65 per cent, irrigation-19.31 per cent, mining- 12.82 per cent, special bridge- 9.08 per cent, tunnel- 5.5 per cent, airport- 2.15 per cent and metro- 1.48 per cent.

Looking upon FY21 guidance, the management has stated that the revenue is likely to remain flat in FY21. Further, working capital and debt levels could rise in FY21 as compared to FY20 on account of new projects. The company’s net debt as of FY20 stood at Rs 2,934 crore and working capital days stood at 90 days as of FY20.

In the recent quarter ended June 2020 i.e. Q1FY21, the company’s revenue declined 17.37 per cent on a YoY basis due to limited availability of workforce and disrupted supply chain on account of the lockdown imposed. This weak topline resulted in a decline in the operating profit and net profit by 27.24 per cent and 70.47 per cent on a YoY basis, respectively.

Today, the stock of Dilip Buildcon opened at Rs 370.10 and gained nearly four per cent to Rs 380.10 on BSE.