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Dilip Buildcon Q3 Results Review - Volatile Margin: IDBI Capital

Order book of Rs 265 bn, provides visibility at 3x trailing twelve months revenue but need to watch for margin volatility.

<div class="paragraphs"><p>Dilip Buildcon Ltd.'s Bhopal Metro project. (Source: Company website)</p></div>
Dilip Buildcon Ltd.'s Bhopal Metro project. (Source: Company website)

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IDBI Capital Report

Dilip Buildcon Ltd.'s Q3 FY23 Ebitda was lower than our estimates by 39%.

Numbers are lower than our expectation as we were expecting QoQ improvement in Ebitda margin. However, Dilip Buildcon reported Ebitda margins at 10.5% versus 11.6% QoQ.

Company has reduced its Ebitda margin guidance for FY23E to 11% versus 12% earlier but maintain revenue estimate for FY23E.

Order book stands at Rs 265 billion; contribution from roads/ metro/ irrigation/ water/ tunnel/ mining/ bridges stood at 39%/ 6%/ 14%/ 12%/ 8%/ 17%/ 3%.

Order inflow for the quarter was nil but for Q4 FY23 company received orders worth Rs 33 billion, and till date order inflow stands at Rs 101 billion. More than 50% of order inflow is from sector other than roads. Dilip Buildcon is targeting order inflow of Rs 130-140 bn for FY23E.

Click on the attachment to read the full report:

IDBI Capital Dilip Buildcon Q3FY23 Results Review.pdf
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