The shares of the integrated dredging services provider gained up to 5 percent after the company’s net profit and revenue increased by 92 percent YoY and 34 percent QoQ, respectively in the third quarter.
With a market capitalization of Rs 2,099.44 crore, the shares of Dredging Corporation of India Ltd closed at Rs 749.80 per share, increased around 5 percent as compared to the previous closing of Rs 714.10 apiece.
Looking into the company’s Performance, Dredging Corporation of India Ltd’s revenue increased by 34 percent on a quarter-on-quarter basis from Rs. 198 crores in Q2FY24 to Rs. 265 crores in Q3 FY24. Furthermore, revenue declined by 28 percent year on year from Rs. 371 crores in Q3FY23 to Rs.265 crores in Q3FY24.
Dredging Corporation of India Ltd’s net profit increased by 59 percent on a quarter-on-quarter basis from Rs.17 crores in Q2FY24 to Rs. 27 crores in Q3FY24. Further, net profit increased by 92 percent yearly from Rs. 14 crores in Q3FY23 to Rs.27 crores in Q3FY24.
As per India rating & research, DCI is one of the leading businesses in the domestic dredging industry, with over 80% and 70% market dominance in maintenance dredging and capital dredging for major ports, respectively, owing mostly to the granting of incremental dredging contracts from its promoter ports through nominations.
The stock gave a 77.93 percent return in six months and a 118.20 percent return in a year. If an investor invests Rs 1 lakh in the company would be worth Rs 2.18 lakhs in a year.
As of FY22-23, DCI entered an agreement with M/s. Cochin Shipyard Limited for construction of New TSHD 12000 CUM capacity Dredger for a contract value of Rs.379.70 crores plus Euro 4.6262 crores.
Dredging Corporation of India Limited (DCI) provides dredging services to the country’s main ports. The company’s services include capital dredging, maintenance dredging, beach nourishment, land reclamation, shallow water dredging, project management consultation, and maritime construction.
Written by:- Abhishek Singh
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