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Dilip Buildcon buzzing after Nomura call; management says diversification the key

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Dilip Buildcon buzzing after Nomura call; management says diversification the key

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Dilip Buildcon is buzzing in trade after Nomura bets on the company with a buy call. The diversification into coal mine developer-cum-operator (MDO) and rail appears to be synergistic. To discuss this and the outlook for the year ahead, Rohan Suryavanshi, the head of strategy and planning spoke to CNBC-TV18.

Dilip Buildcon is buzzing in trade after Nomura bets on the company with a buy call. The diversification into coal mine developer-cum-operator (MDO) and rail appears to be synergistic. To discuss this and the outlook for the year ahead, Rohan Suryavanshi, the head of strategy and planning spoke to CNBC-TV18.
Suryavanshi said, “Diversification has been a key strategy for the company over the last few years. We have thought about diversification in three ways, one is the geographical diversification, second through different segments and third is the short-term contract versus long term contracts.”
“Coal MDO provides us a nice long annuity income going for the next 20-30 years,” he added.
On generating income from coal MDO he said, “In the next 3-5 years as the coal production hits the peak capacity which is 50 million metric tonne for this one we will be producing that kind of operating cash flow for sure.”
He expects roughly Rs 250 crore every year from the coal MDO. On hybrid annuity mode (HAM) portfolio monetisation Suryavanshi said, “We have 12 HAM projects out of which five have already been committed to Cube Highways, another seven has been committed to another investor, but is under due diligence.”
“From the total 12, we will be raising about Rs 2,000 crore, the total 12 projects that we have currently which is including the five that we already sold to Cube. This money will come in the next two financial year,” he added.
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