Dilip Buildcon gains upon receiving LOA for Uttarakhand project

Infrastructure developer, Dilip Buildcon on Tuesday after the market hours informed the bourses that the company has received a letter of acceptance (LOA) from Rail Vikas Nigam for a new project in the state of Uttarakhand, India.

The scope of the project includes the construction of tunnels, bridges, yard, and formation works between Rishikesh and Karanprayag (Uttarakhand, India). The project cost is Rs 1,334.95 crore and would be completed in 50 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 lockdown imposed. This weak top-line resulted in the decline in 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 388.95 and gained nearly four per cent to Rs 395.85 on BSE.