Dredging Corp gains after new order win

Dredging Corporation of India rose 2.6% to Rs 847.30 at 09:24 IST on BSE after the company secured Rs 88.51 crore contract for dredging of channels and basins at Cochin port.

The announcement was made after market hours yesterday, 11 January 2018.

Meanwhile, the S&P BSE Sensex was up 103.74 points or 0.3% at 34,607.23. The S&P BSE Small-Cap index was up 139.52 points or 0.7% at 20,123.45.

On the BSE, 38,000 shares were traded on the counter so far as against the average daily volumes of 1.13 lakh shares in the past one quarter. The stock had hit at a high of Rs 856.65 and a low of Rs 840 so far during the day. The stock had hit a 52-week high of Rs 920 on 8 January 2018 and a 52-week low of Rs 438 on 23 January 2017.

The small-cap company has equity capital of Rs 28 crore. Face value per share is Rs 10.

Dredging Corporation of India (DCI) said that the company has been carrying out the maintenance dredging works at Cochin Port continuously since 2011-12. Cochin Port invited global tenders for maintenance dredging for the year 2017-18 during August 2017 which is one of the major maintenance dredging projects in India. DCI participated in the bidding process.

The price bids were opened on 11 January 2018 and the company stood as the lowest bidder with Rs 88.51 crore, thereby successfully retaining the work in its order book for next year. The dredging at Cochin Port is to be carried out throughout the year by deploying two dredgers.

Dredging Corporation of India reported net profit of Rs 18.59 crore in Q2 September 2017, as compared with net loss of Rs 14.37 crore in Q2 September 2016. Total income fell 0.6% to Rs 162.75 crore in Q2 September 2017 over Q2 September 2016.

State-run Dredging Corporation of India provides dredging services to the major ports of the country. Government of India holds 73.47% stake in the company as per the shareholding pattern as on 30 September 2017.

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