Shares closed 5.6% higher ahead of the results. They’re up 59% so far this year, outpacing a gain of more than 36% in the small-cap index
Dilip Buildcon’s second quarter profits are rising on steady demand for infrastructure
Dilip Buildcon on Tuesday reported a fourfold increase in second-quarter profit as the developer benefited from steady infrastructure demand in its urban and water supply businesses.
Consolidated net profit rose to Rs 68.63 crore ($8.24 million) in the quarter ended September 30, compared to Rs 17.01 crore a year earlier.
The Madhya Pradesh-based company, which builds projects such as roads, bridges, dams and commercial and residential properties, said its net order book stood at Rs 239.89 billion at the end of September, compared to Rs 263.38 billion a year ago.
Analysts said the decline in the company’s order book, indicative of its project pipeline, was due to weak spending trends in road infrastructure, partly due to seasonal rains that hampered construction work.
However, infrastructure development companies are seeing demand pick up as government spends more on the sector ahead of the upcoming state and general elections.
Peer Thermax reported a profit increase of around 45% in the second quarter, while Larsen & Toubro exceeded second quarter profit expectations thanks to strong growth in infrastructure-related projects.
Dilip Buildcon’s operating revenues rose around 10% to Rs 2,849 crore, boosted by its engineering, procurement and construction (EPC) projects and road infrastructure maintenance segment, which accounted for over 99% of total revenue.
Shares closed 5.6% higher ahead of the results. They’re up 59% so far this year, outpacing a gain of more than 36% in the small-cap index
First print: November 8, 2023 | 12:12 pm IST