Dilip Buildcon secures ₹1,092.46 crore railway project
Upstox
2 min read • Updated: April 9, 2024, 5:30 PM
Summary
Shares of Dilip Buildcon, an Indian construction and infrastructure development company, rose by 3% after the company secured a railway project worth ₹1,092.46 crore. This milestone comes shortly after the company completed a project in Goa.
Dilip Buildcon Limited announced that it had secured a new railway project worth ₹1,092.46 crore, following which the stock gained 3% intraday, but closed 0.5% lower. Experts believe that this project will significantly improve Dilip Buildcon's order book and provide a much-needed boost to its revenue stream.
On March 11, the company secured a ₹548 crore project from the National Highways Authority of India (NHAI). This project involves improving a 6.6 km stretch of the Thoppur Ghat Section in Dharmapuri, Tamil Nadu, with a completion deadline of 36 months.
While Dilip Buildcon reported a 3.2% year-on-year decline in net profit for the quarter ending December 2023 (₹107.4 crore compared to ₹111 crore in the previous year), the company's revenue from operations showed positive growth. Revenue surged by 23.9% to ₹2,876.8 crore, compared to ₹2,322.4 crore in the same quarter of the preceding fiscal year. This indicates continued business activity and potential for future profit growth despite the slight decline in net profit.
On March 31, 2023, the company completed four HAM (Hybrid Annuity Model) projects totaling ₹2,4,95.4 crore and one EPC (Engineering, Procurement and Construction) project in Gujarat, Telangana, Karnataka, and Chhattisgarh for a total of ₹570 crore. Additionally, the company has secured four contracts in Madhya Pradesh, Rajasthan, and Goa that involve urban development, irrigation, and water delivery for a total of ₹2,641.3 crore.