BENGALURU (Reuters) – India’s Dilip Buildcon reported a fourfold surge in second-quarter profit on Tuesday as the developer benefited from steady infrastructure demand in its urban and water supply business.
Its consolidated net profit climbed to 686.3 million rupees ($8.24 million) in the quarter ended Sept. 30 from 170.1 million rupees a year earlier.
The Madhya Pradesh-based company, which builds projects including roads, bridges, dams, and commercial and residential properties, said its net order book as of September-end stood at 239.89 billion rupees, compared with 263.38 billion rupees a year ago.
Analysts said the decline in the company’s order book, indicative of its project pipeline, came amid weak spending trends in road infrastructure, partly due to seasonal rains hindering construction work.
However, infrastructure development companies are seeing demand picking up as the government spends more on the sector ahead of upcoming state and general elections.
Peer Thermax reported a roughly 45% jump in second-quarter profit, while Larsen & Toubro surpassed second-quarter profit estimates on strong growth in infrastructure-related projects.
Dilip Buildcon’s revenue from operations rose about 10% to 28.49 billion rupees, boosted by its engineering, procurement and construction (EPC) projects and road infrastructure maintenance segment, which accounted for more than 99% of the overall revenue.
Its shares settled 5.6% higher ahead of the results. They had climbed 59% so far this year, outpacing an over 36% gain in the small-cap index
($1 = 83.2516 Indian rupees)
(Reporting by Rama Venkat and Hritam Mukherjee in Bengaluru; Editing by Devika Syamnath)