Dilip Buildcon Ltd

- Dilip Buildcon Limited is targeting no significant fundraising through warrants or equity at the parent level for the next 2 to 3 years. - The recent capital raise was largely driven by investor insistence, not company-initiated fundraising. - The company plans to reduce debt through a combination of internal profits and external capital raised. - Capex spending will be slower, avoiding new equipment investments to keep the balance sheet leaner. - The partnership with Alpha Alternatives involves capital infusion of about INR 2,000 crores, split between warrants and stakes in HAM projects, occurring through FY '24 and FY '25. - DBL intends to focus on monetizing assets via its InvIT to generate long-term revenue streams rather than raising new debt or equity frequently. - The company aims to become net debt-free by FY '25.

- The company plans to go slower on capex, especially on gross block investments in equipment, aiming to reduce capex related to own equipment unless there is a growth block of about INR 4,000 crores. - They will continue selective investment in PPP projects that meet their IRR hurdles. - Capex for FY '24 is projected around INR 50 to 75 crores net, considering replacement of old equipment. - The strategy focuses on making the balance sheet leaner and lighter by sustaining growth with existing equipment without aggressive capex. - They aim to reduce both long-term and short-term debt by INR 800-1,000 crores from FY '23 to FY '24. - Capital raised via partnership with Alpha Alternatives (~INR 2,000 crores) will partly be used for debt repayment and equity investments in HAM projects. - Using capital and profits, they are investing in equity projects and InvIT units to drive asset monetization and generate long-term revenue streams.

- Targeting a measured revenue growth of 5% to 8% year-on-year from FY '23 levels. - Guidance for FY '24 includes achieving approximately INR 11,000 crores in revenue. - Growth will be driven by diversified sectors beyond roads, including water, railways, metros, airports, mining, dams, and canals. - Not pursuing aggressive growth to avoid heavy capex; focus is on sustainable, lean operations with existing equipment. - Expect order inflow around INR 10,000 crores annually, maintaining a policy of roughly 2.5x order book to revenue. - No intention to bid aggressively for low-margin projects; prioritizing projects that meet IRR hurdles. - Long-term growth strategy includes both EPC (short-term) and asset (long-term) revenue streams, supported by InvIT units generating steady cash flow. - Gross block capex to be reduced; growth to rely on existing assets and selective PPP projects.

- Targeting a consistent revenue growth of 5% to 8% annually over the next 2-3 years, with INR 11,000+ crore top line expected in the near future. - EBITDA margins projected between 12% to 14%, reflecting steady operational efficiency. - Profit after tax (PAT) margins expected to improve as the company becomes net debt-free by FY '25, benefiting from lower finance costs. - Early completion bonuses, which previously added 1-2% margins, are less relevant now due to diversified sectors, but overall margins are maintained through cost optimizations. - Debt reduction focus and lower capex commitments will improve cash flows and profitability. - InvIT deal expected to provide regular non-EPC income, with annual cash flow from InvIT units estimated at INR 400 crore plus. - Striving for a leaner and lighter balance sheet to support measured and sustainable growth rather than aggressive expansion.

- The company has bid for projects worth approximately INR 10,000 crores where results are pending. - The current order book is diversified across sectors including roads, metros, airports, water projects, dams, canals, water supply, and mining. - Roads now constitute less than 40% of the order book, down from over 80%. - The government has floated orders worth about INR 75,000 crores in HAM and INR 25,000 crores in EPC segments. - DBL aims for a measured growth with an order book maintaining around 2.5x of revenue, targeting winning around INR 10,000 crores in new orders annually. - The company expects continued activity and inflow from various sectors aligned with government infrastructure focus, ensuring a robust and diversified order book.