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

BENGALURU (Reuters) - India's Dilip Buildcon Ltd 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)