Dilip Buildcon Expects Robust Order Flow From NHAI To Continue This Financial Year
Construction engineering major Dilip Buildcon Ltd. is expecting to benefit from the breakneck pace of road orders awarded by the National Highways Authority of India and the road ministry in the current financial year.
The NHAI orders should be higher than 17,000 kilometres awarded last year, Rohan Suryavanshi, head- strategy and planning at Dilip Buildcon, told BloombergQuint in an interview. “We are in a good space with the current orderbook,” he added.
Orders for Dilip Buildcon have more than doubled in the last financial year. The company bagged orders worth nearly Rs 19,000 crore last year from NHAI, which is the third largest after KNR Construction and Ashoka Buildcon, according to data compiled by BloombergQuint.
The company claims its self-sufficiency in executing orders sets it apart from competitors who sub-contract. It also helps the company complete orders on time. Like in recent years, around 1.5-2 percent of the company’s revenues in FY19 would be contributed by completion bonus, he said, adding that “Ebitda (earnings before interest, tax, depreciation and amortisation) margins are likely to be better than the industry.”
Shares of Dilip Buildcon have gained 25 percent since the Indian markets hit lifetime highs on Jan. 29, 2018. Both the benchmarks, the S&P BSE Sensex an the Nifty 50 have declined close to 8 percent in the same period. The stock was trading over 3 percent higher at Rs 1,152 at 2.38 p.m. today on the NSE.