Posted on June 17, 2024
Dredging Corporation of India Limited (DCIL) shares rallied 10% to hit a fresh 52-week high and upper circuit limit at ₹1,129.2 per share on the NSE on Wednesday, June 12, after the state-owned company announced securing an order worth nearly ₹2,016 crore.
In a filing to the stock exchanges Tuesday, the company said that it has been awarded a ₹2,015.88 crore contract by the Syama Prasad Mookerjee Port Authority (SMPA), West Bengal.
The contract bagged by the DCIL is for maintenance dredging in the Hooghly Estuary, West Bengal, predominantly in the shipping channel which leads to Haldia Dock. The company mentioned that the contract has been awarded for a period of five years. The process of dredging involves the removal of sediments and debris from the bottom of water bodies to ensure smooth movement in waterways.
The company mentioned in the release that maintenance dredging is crucial for ensuring the navigability of the shipping channel.
The dredging company’s revenue from operations for the March quarter grew nearly 5% to ₹277.88 crore compared to ₹265.41 crore in the preceding fiscal. Sequentially the company’s revenue from operations fell 18% from ₹337.43 crore in the December quarter. DCIL’s revenue from operations for FY24 declined nearly 19% to ₹945.5 crore against ₹1,165.01 crore in FY23.
The company posted a net loss of ₹23.46 crore compared to a net profit of ₹27.22 crore in the preceding fiscal. The dredging company’s net loss for the quarter ended December stood at ₹222.93 crore. The company turned profitable in FY24 and posted a net profit of ₹35.68 crore against a loss of ₹196.19 crore in the preceding fiscal.
Dredging Corp is a provider of dredging services to all major ports in India. The company was established in 1976.
