Shares of Dredging India rose 5% on March 10 in reaction to the order win. Shares of the company were trading at Rs 354.85 on the BSE at 9.16 am, up 4.1%. The stock has fallen 12% so far this year.
The Kochi Southern Naval Command has awarded the dredging company the annual maintenance dredging contract for the Ernakulam Naval Channel. The work, which includes dredging about 1.5 million cubic meters of Naval Channel at Ernakulam, Kochi annually, is estimated to cost Rs 64 crore by 2022-23, the company said in a regulatory filing.
Dredging Corporation added that the order will help the company achieve its FY23 revenue target of Rs 1,000 crore, its highest ever.
The company provides dredging services to major ports in the country, serving both large and small ports, Indian Navy, fishing ports and other maritime organisations.
The Indian government has divested its entire 73.41% stake in the company to four ports – Vishakhapatnam Port Trust (19.47%), Jawaharlal Nehru Port Trust (18%), Paradeep Port Trust (18%) and Deenadyal Port Trust (18%) on March 8, 2019, and the transfer of management and control.
Net sales for December 2022 stood at Rs 371.32 crore, up 55% year-on-year, while net profit fell 52% to Rs 13.84 crore in the reported quarter.