Dredging Corp gains on bagging maintenance contract from JNPA

Dredging Corporation of India (DCI) rose 2.60% to Rs 294 after the company announced that it has secured a maintenance dredging contract worth Rs 250 crore per year from Jawaharlal Nehru Port Authority (JNPA).

As per the regulatory filing, JNPA awarded the maintenance of Mumbai & JNPA navigational channel to DCI that includes dredging of 20 million cubic meter plus or minus 20% yearly with the project cost of about Rs 250 crore per year.

Ministry of Ports Shipping & Waterways promulgate dredging guidelines 2021 and emphasized that major ports to award dredging contract on long term basis. Long term of three years contract awarded by JNPA shall be assured revenue to DCI topline amounting to Rs 250 crore yearly.

The company said that the extension of the contract by JNPT is feather on the cap of DCI which is aiming at a record highest ever turn over of Rs 1000 crore for this financial year 2022-23.

DCI, Visakhapatnam is a listed dredging company in India under the consortium of four major ports Authorities viz-a-viz, Visakhapatnam Port, Paradip Port, Jawaharlal Nehru Port and Deendayal Port holding majority shares of 73.47%. DCI is the premier dredging organization of India catering to the dredging and allied services to Major Ports, Minor Ports, Indian Navy, Fishing Harbours and other maritime organizations by deepening and maintaining the safe navigation at channel for EXIM activities.

On a standalone basis, DCI reported net profit of Rs 1.20 crore in Q4 FY22 as compared to a net loss of Rs 106.52 crore in Q4 FY21 . Net sales surged 36.4 % to Rs 289.09 crore in Q4 FY22 over Q4 FY21.

Powered by Capital Market - Live News