Dilip Buildcon jumps 4% on Rs 702 crore order win

Shares of Dilip Buildcon jumped 4 per cent in Monday's trade after the company said it has received the letter of acceptance (LOA) for an order worth Rs 702.02 crore. In a filing to BSE, Dilip Buildcon said the order is for 'Surat Metro Rail Project Phase -1 (Pkg-CS-6)' in the state of Gujrat.

"In continuation to the announcement dated July 02, 2022 and in accordance with the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform you that the company has received the letter of acceptance (LOA) from the Gujarat Metro Rail Corporation (GMRC) Limited," Dilip Buildcon said.

Following the development, the scrip rose 3.7 per cent to hit a high of Rs 225.35 on BSE.

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"The trading window for dealing in the securities of the company for all insiders, designated persons and their immediate relatives, connected persons, fiduciaries and intermediaries is already closed from the end of quarter till 48 hours after the declaration of financial results of the Company for the quarter ended September 30, 2022," the company said.

In its earnings preview note, Antique Stock Broking said it is cautious about Dilip Buildcon (DBL)'s belief of a Rs 3,000 crore quarterly revenue-run rate. Ebitda margin should be a thing to watch as

Dilip Buildcon continues to remain under pressure on account of higher raw material prices and cost overruns on legacy projects, the brokerage said.

"Debt reduction would be a parameter to watch as the management has plans to reduce standalone debt by Rs 300-400 crore in FY23 aided by part monetisation/securitisation of InVIT units, which are expected to be issued in July. We could be looking at new inflows in Q2FY23, as the company guided FY23 order inflow to be in the range of Rs80- 10000 crore and also on the back of reduced competition," it said.

The order book for the company stood at Rs 25,160 crore, which was 2.8 times FY22 revenues.