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The management at Dilip Buildcon Limited is pleased to present the second financial report of your Company following its initial public offering in August 2016.
The numbers that we reported during the year under review are a testament to our competitive advantage and long-term sustainability. We like to see ourselves as an execution-driven company on one hand and an opportunity responsive company on the other, taking part in India’s growth story.
India as a country has grown leaps and bounds and we feel this is very early for India, as there is immense infrastructure still to be built. Today we are evaluating options across various sectors in the infrastructure space whether it is roads & highways, irrigation, urban development, mining, metros, and railways. We would like to be wherever there is construction in any form.
I continue to be a big believer in India’s transformation phase and as we keep growing, infrastructure requirement is only going to be larger and that’s where we see ourselves playing a more prominent role.
This year was one of the most important year for our company for many reasons:
We take immense pride in our in-house execution capabilities, which we believe are the best in the industry. Our focus will always be on execution of projects in hand. This is a strength for which the company is known for. A good way to understand this or maybe to demonstrate this is by sharing a small fact of the Governments stated target of 25 km a day of construction. Dilip Buildcon is building a little over 15% of it on its own. So this is a huge milestone for any company to be accounting for that big of a government’s target.
Since our incorporation in 1987, we have laid 15,000 kilometers of roads, with 8,000 km having been completed in just the past five years. This is the maximum built by any construction company in India.
This year we completed our first Dam project (Mohanpura Major Multipurpose Dam) worth Rs.4,159 Mn before time which was inaugurated on 23rd June by the Hon’ble Prime Minister Shri Narendra Modi.
This marks another milestone for the company by executing a non-road project before time by showcasing our execution capability across different business verticals.
India’s power needs are going to be immense in the future and a lot of the natural resources in India are still not utilized commercially. We saw this as an opportunity and forayed into the mining segment during June 2016. Our Mining revenues have grown at a healthy CAGR of 48% since then.
We tied-up with IBM for Digital Transformation - SAP (HANA), Cloud Services and Operational Excellence. SAP implementation is completed and the system is live now.
This reiterates our belief being a process and system driven company with high reliance on the latest technology to make quantum improvements in all key areas of work thereby making Dilip Buildcon a technology leader in this sector.
It gives me immense pleasure to restate the historic and landmark deal Dilip Buildcon was able to achieve with Shrem Group, which was a commitment that we had made during the IPO days. This was the largest road construction deal worth Rs.10,500 crs and such a large portfolio were sold at one go. We showcased our ability to sell off under construction assets to an investor in a market situation which has a lot of constructed assets for sale. Selling of old road projects allows us to focus and grow EPC business having higher margin.
We are continually striving to enhance value for investors. The trust that our stakeholders place in us is at the heart of this. We have an approach of providing regular and stable payouts to investors. Consistent with this approach, we have recommended a dividend @ 10% i.e. Rs.1.00 per equity share of Rs.10/-each for the financial year ended March 31, 2018. The value that a company creates for its stakeholders is not just financial but also social, environmental, intellectual and human. For example, investing in employee skilling and development, organizing safety awareness camps, providing education. Our work in school education, community care, and ecology enhance social and natural capital. Our agenda is not just limited to building infrastructure rather nation building. Social value are also created when companies engage with its communities and work on some of society’s most pressing issues. It creates environmental value by being more ecologically sustainable.
Let me end by thanking all the shareholders for their support and encouragement during the year, for the trust and faith that you repose in us.
Chairman and MD