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.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
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:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.