Posted on October 5, 2015
The Dredging Corporation of India (DCI) has registered a 66% increase in profit after tax to Rs 62.40 crore during the 2014-15 fiscal as compared to Rs 37.54 crore in 2013-14. This was despite a lower total income of Rs 743.79 crore for the fiscal as compared to Rs 772.70 crore for 2013-14
According to a release following the company’s annual general meeting in Delhi, DCI dredged 74 million cubic metres on 3,232 dredging days during 2013-14, which dropped to 65 million cubic metres with 3,138 dredging days in 2014-15. The capacity utilisation during the fiscal stood at 102% of the targeted capacity in terms of number of days and 97% of the targeted capacity in terms of volume.
According to DCI officials, two main reasons for the drop in turnover were the reduced operational days of vessels due to dry docking, which reduced the availability of dredgers and the fall in fuel rates, which were part of contracts with clients and escalated or reduced with fuel prices. On the other hand, the increased operational efficiency and change in depreciation policy for dredgers from 14 years to 25 years helped boost profits.
During 2014-15, DCI said that maintenance dredging contracts were executed for Kolkata Port, Haldia, Kandla, Cochin Port Trust, Ernakulam, RGPPL-Dabhol and NST and VPT. Capital dredging contracts were executed at Kandla Port, Kamarajar Port and Visakhapatnam Port. The above works were executed either under the existing contracts or renewal of contracts entered into with the ports during the previous years or new contracts entered into during the year.
DCI said three Trailer Suction Hopper Dredgers joined the fleet and in line with capacity augmentation the company proposed to purchase two more higher capacity dredgers in the 12th Plan period 2012-17.
With the addition of the new dredgers, DCI was in a position to meet the dredging commitments at various ports and take up refurbishment of the existing aged dredgers so as to enhance their life as well as efficiency, the company said.
The state-run dredger said it was sure that with the ongoing capacity augmentation, its performance would continue to improve over the years and that the company also proposed to enter into inland dredging.
DCI declared a dividend of 30% (Rs 8.4 crore) on the paid-up capital of the company for 2014-15, of which Rs 6.17 crore was handed over to the central government.