Dilip Buildcon shares plunge 3%, management denies reports of auditor resignations

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Published: July 4, 2018 11:05:58 AM

Shares of infrastructure industry player Dilip Buildcon continued to fall for the second consecutive day, after the company had received sanction letter from NBFC and Nationalized Bank yesterday.

Dilip Buildcon shares were trading at Rs 651.05 down by more than 1.1%.

Shares of infrastructure industry player Dilip Buildcon continued to fall for the second consecutive day, after the company had received sanction letter from NBFC and Nationalized Bank yesterday. Meanwhile, the management attributed the fall in the shares to market phenomenon, and said that all the shares of the rood industry players, irrespective of the balance sheet quality has seen a decline in recent times. Notably, the company’s 3 wholly owned subsidiary companies have received the sanction letter from NBFC and Nationalized Bank to finance their hybrid annuity mode (HAM) projects.

There were also rumours about some concerns surrounding auditor resignations. “This is a market phenomenon. There’s a massive carnage in the small and the midcap space. All companies in our sector have also cracked more than 40%.

All the rumours circulating are false. We have clarified them on many occasions. Even our auditors have come out with clarification,s and even submitted to the exchange a letter, indicating their willingness to continue.  Our balance sheet is stronger than ever. Any rumours indicating that we have a weak balance sheet is false,” Rohan Suryavanshi, Head, strategy & planning, Dilip Buildcon, said.

Dilip Buildcon shares were trading at Rs 651.05 down by more than 1.1%. Notably, the stock touched its 52-week high Rs 1,248.35 on 15 May, 2018. The shares have shed more than 50% from those levels. For the quarter ended March-18, Dilip Buildcon’s revenue increased by 46.1% on-year to Rs 2,561.97 crore as against Rs 1,753.46 crore in Q4FY17. The company’s EBITDA margin has contracted by 1.81% on-year to 18.6% as against 20.4% in Q4FY17.

Notably, the operating margin grew by 33.2% yoy to Rs 476.64 crore as against Rs 357.95 crore in the previous year, beating the consensus estimate. The PAT has also registered a 11% rise on-year to Rs 217.36 crore as against Rs 195.77 crore last fiscal.

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