Dilip Buildcon expects revenue amounting Rs 11,000 crore by FY 2018
Dilip Buildcon is eyeing revenue of Rs 11,000 crore over the next two years. The revenue’s estimation is based on the strong order backlog of the infrastructure company. The company, primarily engaged in construction of roads and highways, is expected to close this fiscal with over Rs 4,000 crore in revenue as compared to Rs 2,600 crore in 2014-15 fiscal.
“We have a strong net order book of over Rs 11,500 crore which has to be executed over the next two-and-half years. This gives us a clear visibility of almost similar amount of revenues over the next two years”, company’s head Dilip Suryavanshi said.
Dilip Buildcon, with its presence in 14 states including Punjab, Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh, Chhattisgarh, Jharkhand, Seemandra, Telangana, Karnataka, among others, is eyeing some more projects being bid out by the States as well as by the National Highways Authority of India (NHAI).
“Around 2-3 years back, many private players who had bid for BOT projects were our largest customers with nearly 80 per cent of orders coming from these firms. But today, nearly 90 per cent of our orders come from the public sector as these private firms are facing huge financial crisis due to regulatory issues”, Suryavanshi said.
He further said the company will continue to bid for projects in the regions where it is already present. “Our strategy is to execute projects before schedule and deploy construction equipment owned by us to ensure timely execution. We have a modern equipment fleet of over 4,700 vehicles and other construction equipment of Caterpillar, SchwingStettar, Metso and Wirtgen”, he said. Apart from constructing roads, the company has also undertaken projects in the irrigation and urban development sectors.
“In the irrigation business we specialise in building dams and canals, while in the urban development sector we construct buildings and urban amenities. Besides, we recently bagged a coal mining contract. We expect to bag some more EPC projects in these sectors going forward”, Suryavanshi said.
When asked about its plans to raise Rs 650 crore through initial public offer, he said: “We have already filed the DRHP and received the necessary approvals. But are now waiting for our bankers’ go ahead as we feel this is not the right time to come out with an IPO. We expect to go public in the first quarter of 2016-17.”