- Dilip Buildcon aims long-duration assets to make up 75% of profits by FY29
- Coal production target set at 57 million tonnes by FY29, boosting mining cash flow
- Group cash flow expected to reach Rs 2,000 crore annually by FY29
Dilip Buildcon Ltd. expects long-duration assets to account for around three-fourths of its profits by FY29, as it steps up coal production and adds more infrastructure projects to its portfolio. The company is looking to build a business in which mining and income from infrastructure assets play a larger role alongside its engineering, procurement and construction (EPC) operations.
The company expects to generate annual group cash flow of around Rs 2,000 crore by FY29. Mining is projected to contribute Rs 1,000 crore, while InvIT and other asset holdings could generate Rs 300–400 crore in annual distributions. The EPC business is expected to contribute another Rs 500–700 crore, Managing Director and Chief Executive Officer Devendra Jain said in an email interaction with NDTV Profit.
“Our goal is to keep the standalone EPC business debt-free, while taking on project-level debt to build our asset portfolio,” Jain said.
Mining Targets
Mining is central to the company's plans. Dilip Buildcon is targeting coal production of 34 million tonnes in FY27, comprising 27 million tonnes from Siarmal and seven million tonnes from Pachwara. It expects the business to report annual profit after tax of Rs 300–320 crore and cash flow of around Rs 400 crore this year.
By FY29, the company aims to raise annual production to 57 million tonnes. Jain expects mining cash flow to reach Rs 1,000 crore at that level, comprising profit after tax and depreciation. He said the increase would come from higher volumes and a rise in the mining fee at Siarmal from 78% to 100% after its coal handling plant is commissioned in March 2028.
Coal production increased to 6.1 million tonnes in Q2 FY27, up 27% from 4.79 million tonnes in the previous quarter. Production in the first half was 10.89 million tonnes.
Asset Pipeline
Dilip Buildcon expects another Rs 1,600–1,800 crore in InvIT units as 11 assets are transferred to the trust over the next six months. Its existing InvIT holdings were worth around Rs 1,577 crore in September.
The company's portfolio also includes transmission, solar, water and hybrid annuity model projects, along with the Paradip–Raipur LPG pipeline. The pipeline is expected to be commissioned around FY30, after a 36-month construction period, and will operate under a 25-year concession.
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EPC Contribution
The shift in the business mix is already visible in the first-half results. Consolidated EBITDA stood at Rs 868 crore in H1 FY27. Standalone EPC operations contributed Rs 374 crore, or around 43%, while businesses outside EPC accounted for the remaining 57%, Jain said.
Mining subsidiaries reported H1 revenue of Rs 795 crore at an EBITDA margin of around 25%. The company expects consolidated EBITDA margins to remain in the high teens and standalone EPC margins at 10–10.5%.
Dilip Buildcon's order book stood at a record Rs 33,081 crore at the end of September, up 19% from June. Renewable energy and power transmission accounted for 27% of the order book, while roads and highways made up 15.6%.
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