Dilip Buildcon Ltd

- Current CAPEX is planned between Rs. 50 to 100 crores annually, significantly reduced from earlier levels of 500+ crores per year. - The company is not focusing on aggressive growth or heavy CAPEX; instead, it aims for measured growth prioritizing free cash flow generation and debt reduction. - New equipment investment has been minimized, leading to gradually reducing depreciation expenses. - The strategic focus is on building an InvIT platform in partnership with Alpha Alternatives for 18 road assets, with expected annual distributions of Rs. 400-500 crores by FY26. - Alpha Alternatives is also investing around Rs. 500 crore in warrants of the company, with a total consideration of about Rs. 1,400 to 1,500 crore toward divesting 26% in 18 road assets. - The company remains open to opportunistic investments in other infrastructure verticals like irrigation and mining but does not provide specific CAPEX commitments for these.

- Revenue growth target for FY24 and FY25 is between 5% to 10%, reflecting measured growth with a focus on free cash flow and profitability rather than aggressive expansion. (Page 9, 13) - Confidence in crossing INR 3,000 crore revenue in Q4 FY24 to support the 5% growth target. (Page 6) - Order book with over 1.15 years of visibility supports steady growth and sufficient revenue pipeline. (Page 9) - New orders and bids are awaited, including approximately INR 10,000 crore in road projects, plus opportunities across sectors like water, irrigation, metro, urban infra, and mining. (Page 6, 9) - The company is focusing on leveraging diversified sectors to shield against cyclicality and maintain sustainable growth. (Page 4, 13) - Growth driven by both EPC business (short term) and expanding asset business such as coal mining and roads (long term). (Page 4)

- Revenue growth guidance for FY25 is between 5% to 10%, supported by an order book providing visibility for about 1.15 years. - EBITDA margin currently at 12.4%; management conservatively expects margins to remain stable without aggressive targets but may improve. - Focus is on measured growth with emphasis on free cash flow generation rather than aggressive expansion. - Debt reduction is a priority; aiming to be near net debt-free by FY25, reducing finance costs by at least INR 100 crore conservatively. - CAPEX reduced significantly to INR 50-100 crore annually from 500+ crore earlier, supporting controlled growth. - Long-term stable cash flows expected from road and coal asset businesses, including InvIT distributions (~INR 400-500 crore annually). - Profit after tax increased 19.87% YoY in Q3FY24, showing improvement with better EBITDA margins and cost management. - Depreciation expenses expected to decline as new asset investments are limited.

- Outstanding order book as of Q3 FY24: INR 21,842.9 crore (INR 2,18,429 million) (Page 5). - Order book provides revenue visibility of approximately 1.15 years (Page 9). - Orders won in FY24 till date: about INR 2,500-2,600 crore (Page 9). - Additional INR 10,000 crore worth of road sector orders awaiting to open (Page 9). - Pipeline of old tenders across sectors amounting to INR 1,30,000 crore under evaluation (Page 9). - Expect some tenders/projects to open in Q4 FY24, contributing to order inflow (Page 6). - Order book-to-bill ratio estimated at 1.75 years, indicating strong forward visibility (Page 14). - Focus on measured growth with 5%-10% revenue growth expected for FY25, supported by current order book (Page 9). Overall, the company has a strong and well-diversified order book with significant pending and upcoming orders providing good medium-term revenue visibility.

- DBL is focusing on becoming a net debt-free company by FY26, with significant debt reduction already achieved (530+ crore reduction in first nine months of FY24 and targeting 800 crore reduction by year-end). - Current strategy emphasizes strengthening the balance sheet rather than aggressive growth fueled by external capital. - They have reduced CAPEX significantly (from 500+ crore annually to around 50-100 crore). - Regarding equity, Alpha Alternatives has invested via convertible warrants and holds a 26% stake in a proposed InvIT vehicle; they have rights to subscribe further within 18 months. - Rs. 500-600 crore from Alpha is expected in FY25 via warrants, not fully included in FY25's projections. - No explicit mention of new debt or equity fundraising plans beyond these existing arrangements; focus remains on debt reduction and disciplined capital allocation.