The contract is valued at ₹160.20 crore, excluding Goods and Services Tax (GST), and is scheduled to be completed within 18 months.
The project involves the construction of a diversion road from kilometre 4.700 to kilometre 11.500 of the Duduka-Gopalpur-Toparia Road. The scope of work includes a six-lane carriageway along with service roads in Sundargarh district.
The latest order follows another EPC contract secured by the company in May. Through its DBL-RBL joint venture with Ranjit Buildcon Ltd, Dilip Buildcon received a ₹268 crore contract, excluding GST, from the Gujarat government’s Narmada Water Resources, Water Supply & Kalpasar Department.
The project involves the design and construction of the Ged Barrage, protection works and associated infrastructure across the Sabarmati River between the Hirpura Barrage and Lakroda Weir in Sabarkantha district. The contract also includes 10 years of operation and maintenance.
March-quarter performance
Dilip Buildcon reported a weaker financial performance for the quarter ended March 31, as lower execution and margin pressure weighed on earnings.
Consolidated net profit declined 63.7% year-on-year to ₹62.05 crore from ₹170.83 crore, while revenue from operations fell 25.7% to ₹2,299.8 crore from ₹3,096.1 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 40.7% to ₹392.3 crore, with EBITDA margin narrowing to 17.06% from 21.35% a year earlier. The company attributed the decline to lower revenue, pressure on margins and the absence of exceptional gains recorded in the corresponding quarter last year.
Last month, the company has also outlined plans to reduce its dependence on the EPC business. It expects 75% of its profits and cash flows to come from long-term infrastructure assets and mining by FY29, with EPC contributing the remaining 25%, as it seeks to build a more predictable earnings and cash flow profile.
