Building a strong corporate foundation through timely project delivery
The management at Dilip Buildcon Limited is pleased to present the rst nancial reportof your Company following its initial public offering in August 2016. At the outset letme tell you that we are immensely humbled and grateful to each and every one of you whohas shown utmost trust and con dence in our management our business model and ourstrategy in the rst year of our listing. In a very challenging global environment the IPOwas oversubscribed by 22 times which is one of the major talking points as it happenedalmost after a decade in this sector. Your company raised Rs. 4300 million by way ofprimary issuance of shares and Rs. 2239.77 million by way of offer for sale (OFS) bySelling Shareholders aggregating to Rs. 6539.77 million.
The numbers we reported during the year under review are a testament of our competitiveadvantage and long-term sustainability. I am pleased to state that this performancetranslated into a handsome 59.70%* appreciation in our stock post listing on the NationalStock Exchange and Bombay Stock Exchange enhancing value for our stakeholders.
We like to see ourselves as an execution driven company on one hand and an opportunityresponsive company on the other playing our active role in India's growth story. All thestrategies practices policies that the company adopts or has adopted over the years haveone central theme Focus on Execution. We believe that this dedicated pursuithas made it possible for us to minimize our downside during sector troughs and maximizeour progress during sectoral rebounds.
What started as a dream in a small town in Central India has now become India's largestroad EPC company spanning across 16 states. We are currently building over 8604.61 lanekms essentially participating in the country's growth story and building its backbone.Being a civil engineer the only focus I had while starting this company was to focus ondelivering the best-quality output. Today India as a country has grown far beyond myimagination back then and we have been an active contributor of the country's growthstory. We believe that it is still very early for India as there is still an immensescope for India's infrastructure development. Presently we are evaluating our optionsacross various sectors in the infrastructure space like roads & highways irrigationurban development and mining to broaden our scope.
I continue to be a big believer in the India's transformation phase and as we keepgrowing. The scope for infrastructure is only going to grow in the near future and that'swhere I see us playing a more prominent role.
India's power needs are going to be immense in the future and lot of the naturalresources in India are still not utilized commercially. We saw this as an opportunity andforayed into the mining segment this year. This was possible due to our focus onexecution tracking and monitoring and exceptional project management skills. We enteredinto mining segment last year and we had an order book of Rs. 1045 Mn. However this yearwe expanded our presence in this sector and our mining order book has grown to Rs.26117.19 Mn.
In the last decade our revenues have grown by 103.29 % CAGR. The only external equitywe took to grow to this stage was Rs 750 Mn from Banayan Tree before going public in 2016.It shows our e ciency in utilizing our resources especially our capital.
10 years Revenue CAGR
Your company recently concluded discussions on the strategy for the company. Thehighlights of the plan include:
1. Focus on execution of projects in hand while selectively participating in new bidsof large size
2. Gearing up to tap emerging opportunities in the whole infrastructure space so as tobe seen as a full-service infrastructure company
3. Growing revenues consistently as planned
4. Steady reduction in net working capital and debt levels
5. Monetization of existing road projects as planned
We continually strive to enhance value for investors. The trust that our clients placein us is at the heart of this. We have an approach of providing regular and stablepay-outs to investors; And of prudent evaluation of capital allocation decisions incontext of long term stakeholder value. Consistent with this approach we have recommendedmaiden dividend @ 10% i.e. Rs. 1.00 per equity share of Rs. 10/-each for the nancial yearended March 31 2017. The value that a company creates for its stakeholders is not just
nancial but also social environmental intellectual and human. For example byinvesting in employee skilling and development organizing safety awareness campsproviding education. Our work in school education community care and ecology enhancessocial and natural capital. Our agenda is not just building infrastructure rathercontributing in nation building. Social value is also created when companies engage withits communities and work on some of society's most pressing issues. It createsenvironmental value by being more ecologically sustainable.
We enhanced value for the company and shareholders in 2016-17
Let me end with thanking all the shareholders for their support and encouragementduring the year for the trust and faith that you repose in us.
Chairman and MD