Dilip Buildcon Declared As Lowest Bidder For Rs 1,115 Crore Project

Dilip Buildcon Ltd. on Tuesday was declared as the lowest bidder for Rs 1,115 crore project from Kerala Industrial Corridor Development Corporation Ltd. The Engineering Procurement and Construction project is to be completed in 42 months.

The project is for the designing, construction, testing, commissioning of infrastructure works at Pudussery Central and Kannambra of Palakkad Node in Kerala under extension of Chennai Bengaluru Industrial Corridor to Kochi via Coimbatore, according to the exchange filing. In addition, it will also include the operation and maintenance of infrastructure.

The company's net order book stood at Rs 13,695 crore for the quarter ended June 30 and 17.81% of the order book includes roads and highways projects, while mining projects constitute 28.86%.

Irrigation works accounted for 21.83%, tunnel projects at 12.83%, water supply initiatives contributing 4.26%, optical fiber infrastructure at 7.04%, special bridges and urban development projects making up 5.28%, and metro-related assignments representing 2.09%.

Dilip Buildcon's consolidated net profit jumped 92% to Rs 228.97 crore in the first quarter from Rs 119.5 crore in the same period last year. However, revenue fell by 16.4% year-on-year for the three months ended June, reaching Rs 2,620.3 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 9% year-on-year to Rs 520.5 crore. The Ebitda margin expanded to 19.9%.

The business update was shared after market hours. The stock settled 0.77% lower at Rs 555.15 apiece on the NSE, compared to a 0.13% decline in the benchmark Nifty 50. The shares earlier during the day fell as much as 2.94% to Rs 543 per share.

Dilip Buildcon shares have fallen 1.15% in the last 12 months and risen 23.26% year-to-date.

Out of six analysts tracking the company, one maintains a 'buy' rating, four recommend a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 506.50 implies a downside of 8.8%.