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Construction : Cover Story | August 2018 | Source : CW-India

We always avoid focussing on aggressive bidding in a particular region

Dilip Buildcon was established in 1988 as Dilip Builders and later incorporated in 2006.
The company has an experience of over 20 years in executing road projects, comprising the construction and development of state and national highways, bridges, culverts, flyovers and rail-over-bridges. Its areas of operation include roads and highways, irrigation, urban development, mining, airport and tunnels. The firm's in-house integration model includes a design and engineering team, manufacturing plants for processing of road signage, fabrication of bus shelter and galvanisation unit for metal crash barriers, owned construction equipment and a fleet of transportation vehicles. It is currently executing projects in 17 statesù90 per cent of its projects are completed before time. Devendra Jain, Executive Director & CEO, Dilip Buildcon, shares more...

Please highlight one major challenge faced in FY2017-18.
The biggest challenge faced last year was that there was no bidding activity by NHAI for nearly nine months of the entire year. Bidding activity happened only in the last three months of the financial year: January, February, March. For our order book sequencing, we need to get scattered orders throughout the year, wherein old order works are completed and new works commence. For us, the biggest challenge was that as there was no bidding activity in the first nine months, the projects we won were in the last three months; hence, the appointed dates of these works will only be in the following financial year when work on these can commence, and works for all the projects will commence together. So, this was the major challenge. But we won orders in the last three months and are looking to start work on these together.

Particulars Net
sales
Adjusted
PBDIT/
EBITDA
Reported
PAT
FY2018 (Rs billion) 77.61 14.18 6.21
Growth over
FY 2017 (in%)
51.91 41.31 71.86

What decision do you consider the biggest contributor to the company's growth in FY17-18?
For Dilip Buildcon, the biggest event was the 24 BOT and annuity assets or projects we monetised to an investor and raised Rs 160 billion equity.

Please share a decision you avoided, which could have otherwise impacted the company's top-line and bottom-line.
We always avoid focussing on aggressive bidding in a particular region. So, we mostly focus on working in different geographies; we have a presence in 17 states of the country, so we are well spread geographically.
For example, even though we are a Madhya Pradesh-based company, we do not aggressively bid even in Madhya Pradesh; we avoid such a focus.

What are your plans for the company's growth in FY18-19?
We will reach a top-line of Rs 100+ billion this year. This is our biggest target. Also, we are looking at commencing timely work on the HAM and EPC projects we won last year.
 
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