Dilip Buildcon - The best-in-class execution!


(svasa13) #62

(anujgupta) #63

why is it not paying taxes?


(svasa13) #64

somewhere i read company would start paying out the tax from next year onwards as MAT credits expires in this year.I may be wrong here taxation may be close to 20%


#65

DILIP BUILDCON - Another 4k cr added to the order book tdy.

Total Order win in last 1 month - Rs 20000cr!!

28 Feb - Rs 3063cr
1 March - Rs 7186cr
9 March - Rs 770cr
16 March - Rs 1004cr
21 March - Rs 677cr
23 March - Rs 936cr
24 March - Rs 2190cr
26 March - Rs 4115cr


(Nagesh.shamnur) #66

Hi NandhakumarB,
The data is inconsistent. The same entry is mentioned twice - six-laning between Davanagere-Haveri, once on 22-Feb-2018 and another on 19-Jan-2018.

Thanks


#67

Hi,
DBL won tow different sections of the same 6-laning work.
PFB the details.


#68

when everything is too rosy, it is always good to ask - are we missing something?. For those following DBL story may look at these questions from Amit Mantri. possibly they are already answered. Just in case…

Discl: Not invested. Curious.


#69

Can you please get the calculation to show they are selling their portfolio at such a low return? You would note that DBL could raise debt recently at a lower rate than even L&T . Secondly, there are some assets which are not even completed so it gets money upfront allowing it to bid for bigger contracts by freeing up its equity. Additionally, I recall they also get right to maintain these raods which is a high margin biz. Of course, everyone would love to have these assets on its consolidated BS but those same investors would say it is asset heavy biz and not worthy of investments. Without going into calculation, I would say that it is a fair deal from strategy point of view.


(Julian) #70

In the Annual Report there is no tax in the P&L account. But taxes are being paid in the cash flow statement. What sort of accounting is this?
If the taxes in the cash flow statement are shown in the P&L account, there would be no profit growth at all.


#71

This is opposite of what happens in fraud companies isn’t it? They pay deferred taxes of previous years while accounting taxes for the ongoing FY is negligible. As per the last concall, tax rates will rise to 18-20% in FY19 and then the full rate. This is not the only company enjoying tax benefits among the road builders. However, I am not very clear under which policy it comes.


(Julian) #72

An amount of 105 crores has been paid as tax in 2017 as per cash flow statement. This is against the PAT of 359 crores. All credit rating agencies have withdrawn credit ratings of Dilip Buildcon subsequent to sale of HAM project. Hence rating agencies have not taken the HAM sales as positive. A standard internet search will reveal the kind of Corporate governance standards being followed by this company.


#73

OK, so what is this? rating agency is clearly positive about impending sale.

http://www.careratings.com/upload/CompanyFiles/PR/Dilip%20Buildcon%20Limited-09-05-2017.pdf

THis is a material development and I think new rating makes sense after deal is closed. Regarding corp governace, I have no doubt that he has contacts in the govt. Is it a good thing? jury is out on this since I see fund managers make beeline to kiss hands of mota bhai after he has gone beyond reach. Building road/infra and working in mining is a dirty job and an NRN like person can’t run an infra company in this country. I have my limited expectation on this issue. Of course everyone has a preference and I would not have bought the stock myself 12-18 months back. Good earnings and strong balance sheet along with fair behaviour will make people forget any percieved corp governance issues.


#75

Top Seven Road Developers Bag 40% Of NHAI’s Orders

National Highway Authority of India awarded record road contracts worth Rs 1.22 lakh crore in the year-ended March, helping almost all large construction companies improve their order tally over the previous year.

Top seven companies got 40 percent or Rs 50,000 crore worth of the fresh contracts by value, according to data compiled by BloombergQuint. KNR Construction Ltd., Ashoka Buildcon Ltd. and Dilip Buildcon Ltd. doubled their orders over the year ago. Only PNC Infratech Ltd.’s order in
Barring Dilip Buildcon, Ashoka Buildcon and KNR Construction, the share of most road developers fell in the NHAI awards for 2017-18. That’s because the growing share of the hybrid annuity model in the projects.

“Highway construction is not engineering intensive—smaller players in the past have tied up funding from private equity firms and formed consortium to meet qualification requirements,” Bank of America Merill Lynch said while initiating coverage on Dilip Buildcon. “But with the rising share of projects based on the hybrid annuity model, we expect less competition given the need for a superior balance sheet.”


(rakeshgms) #76

#77

here comes the rating upgrade by one of rating agencies


(Lalit Kumar) #80

The company has completed 2 projects last week, making itself eligible for early completion bonuses of Rs 36 crore


(Lalit Kumar) #83

Dolat Capital Note, updating for likely FY19 revenue of 100bn


#84

Latest shareholding - India mutual fund increased % , FII and retail % stake declined. Overall effective float continues to tighten.


(skg) #85

Hi, I am thinking of investing in Dilip Buildcon on dips. Below are my rationale. Need expert thoughts.

Pros

  1. Govt focus is on infrastructure mainly on road. Govt is expected to award 35000km of highways in next 2 years.
  2. 90% of projects executed before or on time by Dilip buildcon
  3. Execute by inhouse team and no dependency on sub-contracting
  4. Diversified into different segments like road construction, bridges, mining etc.
  5. Equipped with GPS instruments in its machine in order to communicate about servicing, tyre change need etc. It is minor thing. But it shows that company is trying to keep itself up todate in order to deliver on time.
  6. Orderbook jumped to around 25000 crore in March2018

Cons -

  1. PE above 25
  2. D/E is 1.4
  3. FCF is -ve"

(hmallise) #86

CFO resigned

"Considered and approved the resignation of Shri Vaibhav Rawat, Chief Financial officer and Key Managerial Personnel of the Company.
The Board has accepted his resignation and the Chairman thanked to Shri Vaibhav Rawat for his valuable contribution to the Company during his tenure and wish him the very best in all his future endeavors. "