India's Dilip Buildcon swings to profit on one-time gain, lower expenses

Dilip Buildcon

10/02/2023 13:13

BENGALURU, Feb 10 (Reuters) - India's Dilip Buildcon Ltd
 DIBL.NS  swung to a quarterly profit on Friday from a year-ago
loss, as the construction company kept a tight lid on costs and
benefited from a one-time gain related to a stake sale.
    The infrastructure developer reported consolidated net
profit of 1.11 billion rupees ($13.44 million) in the quarter
ended Dec. 31, compared with a loss of 191.6 million rupees a
year earlier. 
    The company recorded an exceptional gain of 2.82 billion
rupees in the quarter due to the sale of its unit. In November,
the company sold its remaining 51% stake in subsidiary DBL
Sangli Borgaon Highways Ltd to infra-investment company
Shrem Invit for 461.5 million rupees.
    The year-ago quarter also included a one-time gain of 1.38
billion rupees.
    Easing of freight and raw material costs also helped Dilip
Buildcon's operating expenses fall 2.84% to 21.29 billion rupees
in the quarter. The urban developer's finance costs also dropped
26%, pulling down its total expenses by 4% to 24.67 billion
rupees.    
    Revenue from operations rose 3.4% to 23.22 billion rupees,
boosted by its irrigation segment that more than tripled to 2.45
billion rupees. Its metros, airports and water supply segment
more than doubled to 1.73 billion rupees, the company said in a
statement. 
    Dilip Buildcon's shares closed up 1.8% on Friday ahead of
the results. 
($1 = 82.5650 Indian rupees)
 (Reporting by Biplob Kumar Das in Bengaluru)
 ((Biplobkumar.das@thomsonreuters.com; 9101861583;))