Ladies and gentlemen, good day and welcome to Dilip Buildcon Limited Q4 and FY 2025 earnings conference call hosted by S-Ancial Technologies Private Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Jill Chandrani from S-Ancial Technologies. Thank you, and over to you, ma'am.
Thank you, Manish. Good morning, everyone. Welcome to Dilip Buildcon Q4 and FY 2025 earnings conference call. From the management, we have with us today Mr. Devendra Jain, Managing Director and CEO; Mr. Rohan Suryavanshi, Head, Strategy and Planning; and Mr. Sanjay Kumar Bansal, Chief Financial Officer. Before we begin this call, let me mention the standard disclaimer. The presentation that we have uploaded on the stock exchange, including the interaction in this call, contains and will contain certain forward-looking statements concerning our business prospects and profitability, which are subject to some uncertainties, and the actual results could differ from those. Now I request the management to take us through the key remarks, after which we can open the floor for question and answer session. I now hand over the call to Mr. Rohan Suryavanshi for his opening remarks. Thank you, and over to you, sir.
Thank you, Jill. Good morning, everyone. On behalf of the entire DBL family, I welcome you all to join us today on this conference call. The results of presentation have been uploaded to the stock exchanges, and I trust you had an opportunity to review them. To begin, let me provide some updates on the broader industry landscape. You all know FY 2024-2025 has been a muted year, marked by low ordering activity from most government agencies. This was very surprising to the whole industry as we all expected since FY 2024 was a mute year, given an election year. We were expecting better, but however, for reasons unknown to us, it hasn't panned out in the way that the industry expected.
According to government data, MoRTH has constructed 8,330 km of roads, although ordering activity was only 4,874 km up to February 2025. On the execution front, NHAI constructed 5,614 km of national highways in FY 2025, surpassing the target of 5,150 km. For the next year, the government has set an ambitious target of constructing 10,000 km of highways, which includes the development of 1,100 km in the northeastern states and 1,250 km in tribal regions. These plans provide us strong visibility for order inflow in the coming year, along with a lot of hope. Our Union Minister, honorable Shri Nitin Gadkari, recently underscored the vital role of infrastructure development in propelling India's growth.
He reaffirmed his ambitious goal of constructing 100 km of highways per day and expressed confidence that India's road infrastructure will surpass that of the U.S. within the next two years. This vision, backed by the government's continued commitment, presents companies like ours with significant opportunities to grow and strengthen our order book. In the airport segment, the government has outlined plans to undertake 50 airport development projects over the next five years. This includes both the construction of new airports and upgradation of existing ones. All these projects will be executed through public-private partnership models, presenting new opportunities and renewed optimism for infrastructure companies. In the tunnel segment, significant opportunities are also emerging.
According to recent reports, 78 new tunnel projects spanning a total length of 285 km and valued at INR 1.1 lakh crores are set to commence soon, and DBL is a strong player in that segment. At DBL, being a diversified EPC player, we are exploring opportunities in all these segments, including roads and highways, irrigation, water distribution, metro, railways, airports, tunneling, coal mining, and the recently added segment that is optical fiber laying under the BharatNet project. Overall, we are participating in orders of upwards of INR 1 lakh crores. We are very confident in the long-term growth prospects of India's infrastructure story and are fully geared up to capitalize on the opportunities in most of the hydro sector. As you can see, the government's focus on the sector is evident through a continuous increase in allocations towards the infrastructure sector.
We can anticipate positive developments in the next few quarters. Now, coming specifically to our company's performance, like the industry at large, DBL also witnessed muted order inflows over the past 24 months with just INR 2,100 crores of new orders in FY 2025. This has resulted in a 21% decline in our top line in the quarter on a year-on-year basis, and a 15% full-year basis compared to the previous fiscal on a standalone basis. Our CFO will delve deeper into the details of our financial performance in the subsequent remarks. While we anticipate robust order inflows in the coming quarters, execution will take time to ramp up and translate into revenues. Assuming some order improves in the next few months, we expect around 5%-7% decline in standalone revenue for this fiscal, with an operating margin of around 10%-11%.
However, at the same time, we're expecting a 10%-15% growth in consolidated revenues. If you look at even this year's consolidated PAT, that consolidated PAT will continue to grow even furthermore next year. Even in the face of a lot of headwinds on the EPC front, the steps that we have taken in the past along the coal and the road asset business, both of them will keep us in good stead going forward and provide the company with predictable cash flows. Now let's talk about our investment portfolio in HAM assets. As previously discussed, we have successfully concluded the Shrem InvIT deal during this financial year. Under this agreement, we have received the full consideration both in cash and in InvIT units.
On an opportunity basis, we have sold 1.27 crore units and realized around INR 136 crores in the last financial year. This is an addition to a cash distribution of INR 120 crores received from Shrem InvIT during the last financial year. As of March 25, we are holding around 6 crore units, which could generate annual cash distributions ranging from INR 70 crores- INR 80 crores from the Shrem InvIT. Moving on to our InvIT partnership with Alpha. We are progressing in line with our strategic plan. So far, we have transferred a 26% stake in eight assets out of a total of 18 assets, including in the deal. Among these, seven assets have achieved COD, and one asset has achieved pre-COD, and accordingly, annuity payments have commenced, concluding the first tranche of the Alpha deal.
The remaining 10 assets are under construction as scheduled and will be divested upon achieving COD. The formation process of our publicly listed InvIT is progressing well. The InvIT has filed draft offer document in March 25, and we are expecting the approvals within this quarter. Now coming to our coal business. Our coal MDO operations are progressing at a rapid pace. In our Siarmal MDO, I'm pleased to share that we have exceeded our production targets by achieving 18.5 million metric tons in FY 2025 against a target of 15 million metric tons. Please bear in mind, even the 15 million metric tons was a revised target, while our original target was only supposed to be as per the original agreement was only supposed to be 10 million metric tons.
We are well equipped to exceed our targets for next year as well, and we hope to achieve production volume of about 25 million metric tons as compared to the target of 18 million metric tons. So it is going well ahead of target. In our Pachhwara MDO, we have achieved production of 6.9 million metric ton in FY 2025, which is the peak production. This is a 7 million metric ton capacity coal MDO. As per the concession agreement, we will continue to achieve similar numbers for the next 53 years. So that's now kind of stabilized at that level. Lastly, let me touch on our vision for DBL 2.0. I'm proud to report that both our long-term revenue-generating business that is coal MDO and the HAM portfolio are progressing strongly.
These will offer us predictable cash flows, improved return ratios, and are more risk-damned profiles. If I may add, even this year, while we are depleting on the book and revenues depleted, we ensured that our standalone debt remains at the same level. What is also very interesting is that at the DIPL level at the consolidated, where DTPIV had also put in capital, we have reduced in FY 2025 that number by about INR 200 crores of debt reduced there. Plus, in this year already at the start, till now, we have already reduced another INR 100 plus crores of. In total, from last financial to right now where we stand, about INR 300 plus crores of debt has been reduced at DIPL level. Besides that, let me also add that in this year, we will completely pay off the whole DIPL debt.
Besides that, paying off the debt of DIPL, which is in the range of about INR 400 plus crores, we will also be reducing standalone debt in this financial year of about INR 500 crores. The revenue, like I mentioned in the financial year, will see some hit, but even with that, we will still be reducing our standalone debt. Our EBITDA also, like I mentioned, because of reducing will be a little on the interest side, but consolidated, if I could talk about even consolidated debt. On a consolidated level, our debt will reduce by more than INR 2,000 crores. The revenue will, like I mentioned earlier, will increase at a 10%-15%, and the PAT will also increase. So when I keep speaking that we need to right now keep looking at details, we are looking to make a more lean company.
We are looking to make sure that the debt at the standalone level reduces completely, and that exercise is on. Even on the consolidated level, only during the construction time, we will be keeping, and the rest, the assets will continue moving year-on-year.
Now, with that, I would like to hand over the call to our CFO, who will provide a detailed overview of our financials. Thank you.
Thank you, Rohan. Good morning, everyone. I welcome all the stakeholders to our earning call. Let me present the results for the quarter ended 31st March and year ended 31st March 2025. On quarterly performance year-on-year basis, the standalone revenue decreased by 31% from INR 2,931 crore to INR 2,315 crores. The EBITDA also decreased by 31% from INR 353 crores to INR 209 crores. The profit after tax decreased by 62% from INR 124 crore to INR 47 crores. On full-year basis, FY 2025 versus FY 2024, the revenue decreased by 14.55% from INR 10,537 crore to INR 9,004 crore in FY 2025. The EBITDA decreased by 30% from INR 1,299 crores to INR 903 crores.
The profit after tax decreased by 26% from INR 422 crore to INR 311 crore. Let me brief about the console performance. As Rohan briefed in his opening remarks, the console performance of DBL has improved within this year. On a year-on-year basis, the revenue decreased by 8% from INR 3,366 crore to INR 3,096 crore. The EBITDA increased by 100% on a year-on-year basis from INR 330 crore to INR 661 crore. This is on account of the completed HAM assets and coal business performance. Profit after tax also increased significantly between quarter four FY 2024 from INR 3 crore to quarter four 2025, INR 276 crore. On yearly basis, the console performance, the revenue decreased by around 6% from INR 12,010 crore to INR 11,317 crore.
The EBITDA increased by 51% year-over-year basis from INR 1,422 crore to INR 2,151 crore. This is on account of good performance by the coal SPVs, coal MDO SPVs, and completed HAM projects. The profit after tax also increased 4x from INR 201 crore to INR 841 crore. That is also because of the better performance by the completed HAM and the coal business. This is all on the standalone and console performance of Dilip Buildcon for FY 2025 and quarter four FY 2025. Now we can open the floor for the questions and answers. Thank you.
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. I repeat, if you wish to ask a question, you may press star and one. We have our first question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. Sir, first I wanted to understand on the order inflow front. In the opening remarks, you have mentioned that we are looking at INR 1 lakh crore kind of opportunity. A couple of things to understand first. If you can help us broadly. First is, how many value of orders we have bid where outcome is yet to come? Second, out of this INR 1 lakh odd crore, how much would be from the road? Also, are we looking at obviously the HAM and the BOT toll also?
Thank you, Shravan. Currently, already the bids have been put in, about 10,000 crores-15,000 crores of orders where bids have already been put out, and we are awaiting the roofings. In terms of the split between different sectors, that I am unable to give you, and that is not something that the company anyway shares. To answer the second part of the question, yes, we are looking at a mix of HAM, BOT, EPC, all of it, because we also have a large partnership with Alpha Alternatives, where there is a steady inflow and predictable inflow of equity coming in. We have various partnerships in place which will ensure that we have a good return on whatever equity we want to put in for any of these projects. We are looking at all of these different opportunities across segments and across different model types as well.
Okay. Also in terms of, so now for this year, FY 2026 total, how much more? Obviously for last two years was muted on order inflow. Now how much order inflow are we looking at? At the same time, why I am trying to understand in terms of the HAM and toll, because the actual execution will take a much longer time, at least nine odd months to start once after the awarding. In terms of the guidance that we are looking at, 5%-7% decline in FY 2026. Also trying to understand if we are more looking on the BOT toll or a HAM, maybe this can have a even slightly more decline and even FY 2027 also have some impact.
See, Shravan, very good question. There are a bunch of points that I think I would like to make out here. The bulk of our business is EPC because the HAM model is only in the road business. Road itself has become a small part of our overall order book. When you look at the company, even if you look at the presentation that we have, almost 80% of the business that the company is doing right now is EPC. That I think should be able to answer that bit. Now coming to how the revenues pan out, we have also taken a similar kind of mix when we have given our projection modeling and told you that these estimates that we have given you is on the basis of what we expect the orders will flow.
We also understand that, like you rightly pointed out, EPC will start sooner and HAM takes a bit more time to start and show revenue. The numbers that have been given have been given to you according to that. One, there are a couple of good things that have happened. In the road sector the government has taken notice of the challenges that they have faced because of reducing their credentials criteria for bidding of projects. They have really struggled to get projects off the ground and also have started struggling on the construction quality front. Very recently, about a week or so ago, they have changed on the EPC model and made the eligibility criteria more stringent, and similar steps are expected in the HAM model as well. We are expecting now that the competition should be more moderate.
If you look at the last year's data, in HAM, 91% projects were won by non-recognized or the smaller players. 91%. Let that sink in. In EPC, that number is even higher. While the government has awarded these projects at record low prices, there is definitely certain question marks on the quality and the project progress that they will be able to achieve, hence they have taken these corrective measures. We are hoping that that flows in line, in it financially. Did I miss out any points that you asked?
No, just one thing that for this year, how much are we looking at in terms of the order inflow for full-year?
Yes, very right. Sorry. We are looking at about a INR 20,000 crore order inflow this year. So INR 10,000-INR 20,000 and I see it's what we are expecting because the last two years have been quite muted. We are looking at that and we hope the government will really push the pedal on the ordering.
Okay. On the standalone margin, you mentioned 10%-11% that the margin that now should be the case for even for ongoing FY 2026 and going forward also.
I'm just speaking about for FY 2026 right now, Shravan, because going forward is a very long journey. Again, once we have more numbers in the end of this financial, that would be a better predictability in how the ordering has shaped out and all. Because right now what all of us, either you or us would be doing would be just guessing. It would be a pure guesswork. While the bigger numbers that we have tried to give to you are more rooted in certain calculations, which is how much orders we will be able to secure, how many we'll start, what kind of order profitability we will see in those. That's been based on some of that.
I think it's better that we should just look at this right now, and how the next year after that pans out, we should see that progress to the end of this financial year.
Got it. Now on the net front, you mentioned that further another INR 500 crore reduction will be there in FY 2026. By FY 2027, what our stand was, we will be a net debt free. That remains intact.
Yes. That remains intact. Like I mentioned earlier during this year as well, that ideology has remained intact. The timing of it may change referred to external circumstances beyond our control, which is ordering, which has not added up. But it's only a timing sort of issue that has happened. It's not a change in our philosophy, it's not a change in the direction that we're taking the company. That is very much there, that we will be a net debt zero company in the next two years. Like I mentioned, when you're looking at, because you always look at these things in a great amount of detail, and we've always been appreciative of the larger analyst community which ask us all these questions.
So that's why I tried to take not only— While this year we know that the payments of Jal Jeevan Mission were very problematic, slow, and almost nine, 10 months, we didn't see any of that payment coming in, which kept our standalone debt levels elevated. But at the end of it, those payments realized we were able to bring that down. But at the same time, we made sure that even our consolidated debt was reducing. Our agenda is very much in line. Like I mentioned, next year standalone debt will be less by INR 500 crores, and the consolidated will be at least INR 2,000 crores will be reduction in that as well.
Got it. And sir, on the MDO front, is there a way that we will be sharing the profitability number or any value unlocking that I'll be looking for MDO as such?
Sir, consolidated we won't be sharing independent numbers. Like I mentioned, this is all the consolidated that you will get. Value unlocking and all is a system, is a function of market demand. If there is any such sort of opportunity where our investors feel, and this is in the best interest of the company, then we will take it at an appropriate time. Otherwise, that is how it is. We will rest assured, whatever will, if at all some strategy work to evolve, it will be done keeping the interest of all the stakeholders, especially the minority. So they will be told with all their blessing and guidance.
Okay. Sir, I have two, three questions, but if there are more questions, I can come in queue.
We appreciate that. Thank you.
Thank you.
Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one. We have our next question from line of Deepak Purswani from Svan Investments. Please go ahead.
Yeah. Hi. Good morning. First of all, congratulations, especially on the debt reduction and MDO performance. Sir, firstly, wanted to seek some clarification. If I were to look into the order book, last year at the beginning of the year, we had an order book of INR 17,400, and this year at the end of the year, we have INR 15,000, and revenue has been to the extent of INR 9,000. So implied order inflow appears to be INR 6,500, whereas in the presentation we had reported INR 2,100. So just wanted to check whether has there been any change in scope of work in the existing order book? That's the reason there is a deviation in overall business.
Okay. Sir, you are very right. When you look at last year, till then we were not adding the full MDO orders, which should have been rightly done because that is the pure visibility for us. At the end of last year, that was not being added. But in this financial year, we started adding that from first quarter, that we started that practice. Which is why that order is that you see even in our presentation, we mentioned that clear of whole order, which we have a clear visibility and which is there, that whole MDO is also being added in the order book, which earlier was not. That was a mistake, error on our part that a revenue which was going to come was not being added to the order book. It is only that revenue that is being added to the order book right now.
Okay. Secondly, sir, just continuing on the order inflow point of view, like you mentioned about the big pipeline of INR 1,000 crore. Just wanted to get your sense. This big pipeline was also there in the month of December, and we do understand there has been a delay from the ministry level in terms of awarding. If you can give the broader sense, what is causing this delay at the first place, and whether this problem is getting resolved, and how confident are we? Incrementally, this would flow it out probably in the next 6-12 months, the order inflow guidance of INR 15,000-INR 20,000. That is part one. Secondly, if you can also give the breakup of this INR 15,000-INR 20,000.
What is the awarding we are expecting from the road sector, and which are the new verticals which would contribute in terms of the order inflow?
Sir, just to answer your first question, the delay in the government ordering is best asked to them. But from whatever we have understood till now, because the last two years, and more than actually that, where the government, where they saw a significant number of new players and smaller players emerging and taking larger share. So they were facing challenges around financial closure of their HAM projects. They were facing challenges around even once they are getting started, because they have been bid at some really ridiculous numbers, they were seeing challenges in progress. So I think there has been a rethink within the government that this whole process, they do not want to make a repeat of the 2009, 2010, 2011 era, where a lot of players came in and the government got great deals, but none of those deals actually materialized.
I think there has been a rethink in the government that you do not want to have that, because then it is a problem that they will have to again solve, whether it is for banks or whether it will be for the industry. Ultimately, the net loser in that whole scheme is the government. If you all have to recapitalize the banks, if you have to solve for projects that are not done, escalated cost of projects. I think all of that rethinking is happening, precisely where there is an improvement in the qualification criteria that they are doing now. It is better that these projects are now going to be awarded once that qualification criteria is done.
For us as well, when we are looking at this 15,000 crores-20,000 crores of orders, obviously, I cannot give an accurate split of how it will pan out in the end of the year. Because once you bid for a project, there is always a small probability of what you will end up winning. We continue to bid across different sectors that we are working in. We are also looking at some new sectors opportunistically. As and when those things materialize, I think it is a better time to speak about that rather than counting our chickens before they are hatched. That is the first part of it. Second, you were asking, what, sir? That you wanted to know the exact split. Hello?
Yes. In of 15,000 crores- 20,000 crores, which we are expecting, what is the broader segmental breakup we are looking at out in terms of the overall awarding of this?
The sectors that we have already mentioned in the presentation that we are already working, you should look at that only as the broad breakup. We are looking at all those sectors. What will eventually materialize, those percentages might change a little bit here and there, but that is the segment-wise, and even the model-wise, both those splits that we have given in the presentation on page seven. You would be able to make an educated guess around how that should work out. We obviously do not give exact numbers of our bidding strategy. That is how we should think about it.
Thirdly, just continuing on the ordering. So far, we also mentioned there is a 78 tunnel tender project worth INR 1.1 lakh crore, which are also coming with us. If you can also give some broader sense on this in terms of our HQ criteria for these projects as well as I think this project would also require some CapEx investment to the extent of TBM. So if you can give some broader sense, what is the CapEx we are looking out for this year, or are we incrementally looking out for buying some TBM machines to bid these? So how should we look into all this?
Sir, so the various projects that I mentioned, that is announced with the government of India. This is spread over a period of five years. A majority of those projects are under DPR stage, and not all of them will need a TBM. The tunnels that we're also doing, we're doing through boomers, and the projects that we will also target will be the ones that use our current equipment only. Now, in terms of CapEx for the company, this year, we are not expecting to do any CapEx in this financial year per se. So if there is some very small replacement CapEx that we have to do, that will happen. Otherwise, we have no targets of any CapEx. There is no planned CapEx this year.
Also continuing on that part, if you can also give the broader sense in terms of the working capital, how should we look into it? Last quarter, we had a in the Jal Jeevan Mission. This time it appears to be the relatively better working capital. If you can give the just quantum, what has been the reduction in terms of the data with the current juncture, and whether the execution and payment cycle has normalized with the Jal Jeevan Mission project, and how should we see the opportunities going ahead in this segment?
Sir, Jal Jeevan Mission payments thankfully have come at the end of the financial year, which provided relief to all the players because they were stuck for a while and had led us for an elevated working capital cycle. Luckily, the overall working capital cycle came down by the end of financial year. We are expecting the next year's working capital cycle to also be in a similar range only. We are looking to make improvements, but making improvements is a function of how the government payments happen, how the ordering happens. There are a lot of different factors going on. We are looking to make improvements. It will be in this same ballpark region. I think that should be the headline number there. That will be in that same ballpark region, working capital cycle, which is very much where the industry is at.
While we do that, even with the reducing order book and even with the lower revenue numbers, the larger bit will be we will be still reducing the debt. The standalone debt will keep reducing. The net equity ratio will improve furthermore.
Okay. If you can also give a quantum of the data from the Jal Jeevan Mission at the end of this year.
Sorry, what, sir?
If you can give a data outstanding for Jal Jeevan Mission at the end of this year.
Let me just look into all that. We can take that offline. I don't think so at the end of—
Sure.
We can take that offline.
And finally, just final question from my end. In terms of the interest expenses with the reduction in the debt, how should we look into interest expenses for FY 2026?
Specifically, for this revenue of INR 8,500 crore, we are expecting interest costs around INR 400 crore.
Okay. Thank you, and wish you all the best.
Thank you.
Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one. We have our next question from the line of Prateek Bhandari from AART Ventures. Please go ahead.
Yeah. Hi, sir. Thanks for the opportunity. I wanted to understand about the Siarmal coal mine. What I wanted to understand was, once we are done with the coal production and we are able to clock that 50 million metric ton per annum, what are the further plans do we have in place? And what kind of grades of coal are we expecting from there?
Sir, what do you mean by further plans after achieving 50 million metric ton? I am not sure.
You mentioned about the coal handling plants.
Oh, right. Sir, the coal handling plant construction will start within the next two years.
When will it be completed?
We will finish that. We will bring that online so that all the planning for the handling plant is going. That will remove the transportation that we are doing currently via trucks, and it will be done via that.
What will be the estimated CapEx for the same?
The coal handling plant CapEx is around INR 850 crore. We will start constructing coal handling plant from next quarter, and it will complete in two years' time, so before the scheduled completion date.
All right. What kind of grades of coal are we expecting from that Siarmal coal mine? What is the grade?
G11 grade coal we are expecting.
G11?
Yes.
Only one category of grade, or are we expecting other categories as well?
No. It is G11. The mine is G11. So the same grade coal we are expecting.
All right, sir. Thank you.
Thank you.
Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one. Participants are requested, if they wish to ask a question, you may press star and one on your touch-tone phone. We have our next question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you for the opportunity again. Sir, two-three things. First, in terms of the remaining Alpha 10 assets that we will be transferring. So it will be this year will be seven assets and the next year will be three assets. That is the way one can look at?
Shravan, total transfer money is INR 550 crore, and out of it, we are expecting INR 360 crore we will receive this year. And it is to seven assets we are expecting by March, 26% can be transferred.
Okay. Got it. And sir has mentioned that INR 400 crore of DIPL debt. That is the DBL
Sorry, sir, I could not get you. Shravan, [Non-English content]. Hello? Hello?
Yes, sir. We-
[Non-English content]
No, sir, we can't hear. Shravan, are you there?
You can say what the—
We'll move on to the next participant. We have our next question from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Sir, my first question is on NHAI ordering. When do we expect the pickup in NHAI ordering? Which quarter or which, like first half, second half? How do you think this year will be for NHAI ordering?
Sir, we are expecting second quarter onward, it should pick up significantly.
Second quarter. Okay. Do you think, any sense on what kind of measures government is planning or they have already taken, in terms of these smaller players, either in terms of increasing the qualification criteria, making it more stringent. What do you think would change this competitive intensity in the near to mid terms?
Parikshit, basically, there are two parts. EPC projects, the government has already taken the steps to increase the qualification criteria pre-COVID levels. They have increased the performance guarantee requirement, the technical requirement, and they have increased in terms of the technical and financial criteria. EPC is done. Now they are considering for HAM also, the similar way. Automatically, the unrecognized players, competition from them will reduce.
The other question is on the diversification beyond the existing segments. The road has been a non-starter for the last two years. Nothing much is happening there, and outlook also right now looks little uncertain, given there has been no major awarding from NHAI. There has been some state awards. I think we've not been able to get some of these awards from the state. In absence of these large segment in ordering, what are the other segments you're looking at to mitigate the impact of slowdown in this roads awards?
You can see from our presentation, slide seven, I believe, the vertical wise and the segment wise order book. We expect orders from all the segments. Though road is reduced, but we will be getting the new orders from all the segments.
[audio distortion]
We are continuously bidding in all the segments.
Sir, anything on the T&D side or the building segment, which can add incrementally to the new order book?
We are not looking for any building construction.
On transmission side, anything on transmission, battery storage, related HAM projects, anything on that side or solar EPC?
Parikshit, we are looking for transmission very closely.
And so renewable side. The question was what could be the opportunity for us in the renewable, which seems to be a bigger thing now, and how do we want to play that theme? So either both on investment on equity side as well as on the EPC side.
Parikshit, obviously as a company now, given that we have built up certain capabilities, both in terms of equipment and manpower, we are looking at opportunities across the sector. Not just the sectors that we are currently doing, but even beyond that. To give you a very specific sort of idea about our strategy going forward would not be possible in that. So those are things that company like to keep close to the chest. But we are looking at different sectors and wherever we find an opportunity that arises at a good price, we will definitely be taking that.
Anything being evaluated in international markets?
Yes, sir, we were evaluating international markets as well. We were evaluating a coal block in Mozambique as well. Yes, we were evaluating. So we were looking at different opportunities in different regions. We are looking at different regions.
Okay. Sure, sir. Thank you and wish you luck .
Thank you, Parikshit.
Thank you. We have our next question from the line of Aakash Raval from Buoyant Capital. Please go ahead.
Hello, sir. Thank you for the opportunity. Sir, I have just one question regarding the coal MDO part. Our execution has been very good on the coal MDO front. Are we looking to bid for other coal MDO projects which are there in the pipeline going forward?
Yes, sir, we are looking at bidding for more projects. Coal now is a sector that we have been involved in since almost 2016. It has been almost a decade that we have been doing the coal sector in some form or the other. While the MDO sector is within the last four, five years only that we then got into it. Now that we are on track with both these mines, with one being at peak capacity, the other one ramping up very quickly, we are looking at other opportunities.
Okay, sir. Thank you.
Thank you. We have our next question from the line of Sanjay Parekh from Sohum Asset Managers. Please go ahead.
Yes. My questions were answered around the coal MDO, which my colleague asked, the new projects. There you clearly have done exceptionally well. That is answered. One more thing, just a micro. Your order book reads INR 3,626 crore of mining, while both the coal projects is INR 2,826 crore . The balance, is there an external mining contract you have, and can you have more of them?
Sir, it is this way. There are two types of work we are doing. DBL is doing for the subsidiaries. One is EPC work. Siarmal MDO involves EPC works as well. The CHP, the coal handling plant construction work also being done by DBL. The INR 2,800 crore which is added is basically O&M work, the coal extraction and transportation. Whereas, if you take the EPC work, which is coal handling plant and constructing other infrastructure for Siarmal, the total order book would be around INR 3,600 crore, which is shown in the presentation.
Okay, great. It is very, very clear. The second thing is 14923 order is executable over what period, and what part of this revenue could come in 2026 and what part could come in 2027?
Sir, total revenue this year is planned around INR 8,500 crore, and for 2026 it is very early to estimate, but at the same time, our order book is around two to three years, and we will be adding new orders. 2026 will be basically from the existing order book and from the new order book.
Got it. Just if it is possible, that of this 14923, would it be 7,000, 7,500, which is executable this year? Broadly also will be fine. Assuming, we surely would bring new orders. What I am saying is, from the current order book, what would be the executable revenue this year and next year, if possible?
Sanjay, that's a very good question. Out of this order book, you can split this into two years. So now INR 7,000 crores of revenue should be able to come from this order book alone.
That's what we wanted to know.
[Non-English content]
Yes.
Yes.
Yes, thank you. So very small, what I understand is [288]. Largely, this order book will be executed in two years?
Can you hear me? This order book is there, so from whatever we are targeting, almost 80% of the revenue that we are targeting of INR 8,500 crores, so almost 80% of that will be coming from this order book already. We have taken a very conservative estimate for new orders and how much we will be able to start in this year .
Okay, great. Thank you. Thank you very much, and really, in a tough environment, you have done well. Thank you very much.
Thank you, sir. Thank you.
Thank you. We have our next question from the line of Vishal Periwal from Antique Stock Broking. Please go ahead.
Yes, sir. Thanks for the opportunity. Sir, on this profitability for MDO, though you did mention you are not sharing the numbers, but the numbers which you have shared, say, consolidated minus if you do a standalone number, will that be fair to say that the remaining part is coal MDO that is running through in the business?
So, sir, basically, how our console is made, basically standalone plus completed and under construction HAM plus coal. So there is profit from completed HAM also in the console performance.
All our subsidiaries are included. So it is not just the coal business, it is all the subsidiaries of the company are included in there.
Okay. Will you have that number, sir? I mean, what could be their revenue share on quarterly basis or anything, even on annual basis, if you will that be suitable? The HAM basically, the revenue.
On the yearly basis, the coal MDO, both the MDO were around INR 265 crore profit and balance is from the under construction and completed HAM and other subsidiaries.
Okay. Coal MDO at INR 265 at a PAT level.
Sorry, sir. Can you come again?
Sorry. I just missed. You mentioned 265 is what number, sir?
Yeah, INR 265 crore from the coal MDO for this year.
MDO. Okay. Got it. From a revenue front, I think though in the PPT we have mentioned the total revenue which one can get from, say, Pachhwara and that other block, and then the total coal which can be evacuated. In terms of rupees per ton, will that be a fair number to take when we are coming to annual revenue for next year or maybe like this year?
Sir, would you mind repeating the question again, please?
Okay, sorry. Yeah, I will just repeat. I think in the presentation, we have given two, three numbers in terms of total revenue which these mines will give us over a period of next 10, 15 odd years, and also the total coal that we can extract from these mines. Basically, on that matrix, can we just work on that realization part, and then we can come to our revenue for FY 2025 and 2026 to a number. Sir, the reason I am asking is there any escalation which has been there, which we have built in to come to that console revenue which we have given in the PPT for the full MDO?
Sir, the total MDO business revenue that we've given in the presentation, basically it's a calculation of the total coal reserves that the company has to extract. The balance order book that is left at the current prices. We have taken it at the current pricing, like let's say the government is paying us X rupees per ton. We have done that into a direct multiplication of all the tons that we are able to extract throughout the life of the
No inflation.
Without any inflation. This is a non-inflated number that we've done. Including inflation index, that will increase very significantly. This is a non-inflation index number that we've kind of given, just to give you an idea of the size of the business. It's a basic multiplication of total results that we still have to extract into current price.
Okay. Sure, sir. I think that's probably a bit of question from my side. Thank you.
Thank you. Thank you, sir.
Thank you. We have a follow-up question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Sir, is it now possible that we have said there's INR 265 crore PAT for MDO business for FY 2025? Is it possible to share the revenue and EBITDA?
Shravan, that number will be coming in our balance sheet number when the console balance sheet number comes for this year, which is how that was kind of shared. Future numbers, we won't be able to share at this juncture. Whatever that comes in future, you will see it as the balance sheet. So FY 2025, you can see right now what is there.
I was asking only FY 2025. What is the MDO revenue and EBITDA in FY 2025?
Sir, basically I have given you the PAT number. You are wanting the different EBITDA from all the subsidiary would be very difficult. We will submit the audited account and we will upload on the website. Please refer there once it is approved by the shareholders.
Okay, got it. Second, just wanted a clarification. DBL infra debt as on March is INR 400 crore?
Sir, it was INR 484 crore and within this year, means April, we paid around INR 120 crore. So now balance debt is INR 366 crore precisely.
Okay. We are planning to repay in this year itself?
Yes. We are planning to repay entire debt of DIPL this year.
Okay. Sir, this other income of INR 74 odd crore in FY 2025, how much is the Shrem InvIT dividend or distribution?
Basically, please refer our discussion in previous clause. We said the Shrem InvIT distribution is basically 2/3, 1/3. So 1/3 Is basically the capital return and 2/3 is interest and dividend. Total around INR 120 crore we received. You can say the same ratio. But the distribution we are receiving in two places, one DBL and DIPL level. So the ratio will remain same.
Okay. No issues. Thank you. I am all good.
Thank you, Shravan.
Thank you. Ladies and gentlemen, this will be the last question for today, and I now hand the conference over to the management for closing comments.
Well, on behalf of everyone here at DBL, we would like to thank all the participants who came down. I wish a great next financial year for all of you guys, and we hope these turbulent times that we are seeing will finally manage this soon. So keep your family safe and we look forward to seeing you in the next quarter call. If there is any more questions and concerns and doubts, please feel free to reach out to our team. Thank you.
Thank you. On behalf of Dilip Buildcon Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.