Dilip Buildcon rallies about 2% as it becomes ‘L1’ bidder for Surat Metro Project

The huge order amounts to Rs 1,061 crore.

Dilip Buidlcon Ltd, engaged in the infrastructure building space that undertakes engineering, procurement and construction (EPC) projects, has been trending on Dalal Street as it has rallied by about 2.12% from its previous close of Rs 198.45. The scrip opened at Rs 203 and made a day’s high of Rs 206(+3.8%). At 11:00 am on 20th June, the stock was trading at Rs 202.65 on the BSE.

The upside was witnessed on the back of the company being declared as the ‘L1’ bidder for the Surat Metro Rail Project in Gujarat. The tender is issued by the Gujarat Metro Rail Corp Ltd (GMRC). The project order is estimated to be at Rs 1,061 crore. The estimated period for the completion of the project is about 26 months. The length of the metro rail route is about 10.559 km.

Talking about its recent quarterly results, in Q4FY22, revenue decreased by 15.05% YoY to Rs 2663.7 crore from Rs 3135.48 crore in Q4FY21. On a sequential basis, the top-line was up by 18.62%. PBIDT (Ex OI) was reported at Rs 218.65 crore, down by 62.58% as compared to the year-ago period and the corresponding margin was reported at 8.21%, contracting by 1043 basis points YoY. PAT was reported at Rs -41.09 crore, down by 124.35% from Rs 168.76 crore in the same quarter of the previous fiscal year. The PAT margin stood at -1.54% in Q4FY22 contracting from 5.38% in Q4FY21.

Dilip Buildcon has catapulted the company to eminence as one of India’s largest independently owned EPC groups. DBL is aligning with India’s growth vision. DBL is productively contributing by leveraging its execution process and engineering strengths. The company’s value-centric delivery, execution process and commitment to innovation have set the stage for the next phase of growth.

The stock has a 52-week high of Rs 749.30 and a 52-week low of Rs 195.60.