Mumbai: Infrastructure company Dilip Buildcon Ltd has received a Letter of Award (LoA) from Odisha Bridge & Construction Corporation Ltd for a road construction project worth Rs 160.20 crore, excluding GST.
The contract has been awarded under the Engineering, Procurement and Construction (EPC) model and is scheduled to be completed within 18 months.
Project Details
The project involves building a diversion road from km 4.700 to km 11.500 on the Duduka-Gopalpur-Toparia Road in Sundargarh district, Odisha.
The work includes the construction of a six-lane carriageway along with service roads. The project is expected to improve road connectivity and support smoother traffic movement in the region.
Recent Order Wins
The Odisha project adds to Dilip Buildcon's strong order book. In May, the company, through its DBL-RBL joint venture with Ranjit Buildcon Ltd, secured another Rs 268 crore EPC contract from the Gujarat government's Narmada Water Resources, Water Supply & Kalpasar Department.
That project includes the design and construction of the Ged Barrage across the Sabarmati River, along with protection works, related infrastructure and 10 years of operation and maintenance.
Quarterly Performance
Despite winning fresh projects, the company's financial performance for the March quarter remained under pressure.
Consolidated net profit declined 63.7 percent year-on-year to Rs 62.05 crore, compared with Rs 170.83 crore a year ago. Revenue from operations also fell 25.7 percent to Rs 2,299.8 crore from Rs 3,096.1 crore.
EBITDA dropped 40.7 percent to Rs 392.3 crore, while the EBITDA margin narrowed to 17.06 percent from 21.35 percent. The company said lower execution, margin pressure and the absence of exceptional gains seen last year affected its earnings.
Future Strategy
Dilip Buildcon is also changing its long-term business strategy. The company plans to reduce its dependence on EPC contracts and expects 75 percent of its profits and cash flows to come from infrastructure assets and mining by FY29, while EPC will contribute the remaining 25 percent. This strategy is aimed at creating more stable earnings and improving long-term cash flows.
