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Dilip Buildcon Q2 Results Review - Hope Building Up For Revival: IDBI Capital

The company expects margin to further recover as 95% of legacy order is executed by H1 FY23.

<div class="paragraphs"><p>A national highway project in Andhra Pradesh carried out by Dilip Buildcon Ltd. (Source: Company website)</p></div>
A national highway project in Andhra Pradesh carried out by Dilip Buildcon Ltd. (Source: Company website)

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IDBI Capital Report

Dilip Buildcon Ltd.'s Q2 FY23 Ebitda beat our estimates by 17% led by improved Ebitda margins at 12% versus 8% QoQ. Due to execution of projects which did not have price escalation clause, margins have been weak from the last three-four quarters.

Dilip Buildcon expects margin to further recover as 95% of legacy order is executed by H1 FY23. In-line with our expectations, the company guide Ebitda margin of 12-13% for FY23E and 14% plus for H2.

Order book of Rs 263 billion, provides visibility of three times trailing twelve months revenue. Net debt is reduced slightly in Q2 FY23 (Rs 2 billion), further reduction of Rs 4-5 billion is expected driven by asset monetisation in FY23E.

Click on the attachment to read the full report:

IDBI Capital Dilip Buildcon Q2FY23 Results Review.pdf

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