Dredging Corp drops on recording dismal Q1 numbers

Revenue from operations tumbled 45.73% in Q1 FY25 as against Rs 277.89 crore reported in the corresponding period last year.

The company said that the major reason for operational revenue drop is on account of dry-dock repairs/emergency dry-dock repairs of dredgers that are 5 to 6 Nos. However, drydock/emergency dry-dock repairs have been completed all dredgers except one. Further, all these are deployed for dredging activities during July/August 2024. It is expected that Q2 will be performed, in line with revenue guidance, it added.

The company posted a pre-tax loss of Rs 30.98 crore in Q1 FY25 as compared with a profit before tax of Rs 15.66 crore posted in Q1 FY24.

The earnings before interest, tax, depreciation and amortization (EBITDA) stood at Rs 13.11 crore in Q1 FY25, down 77.04% as against Rs 57.09 crore recorded in Q1 FY24.

Further, the company added that it is committed to maintain upward trend and continue to show improvement in the performance which continues to aim at a record highest ever turnover of Rs 1,800 crore for the upcoming coming quarters in the financial year 2024- 25.

Dredging Corporation of India carries out dredging activities including capital dredging, maintenance dredging as well as beach nourishment, land reclamation for Indian ports and Navy. The consortium of four port trusts – Jawaharlal Nehru Port Authority, Deendayal Port Authority, Paradip Port Trust and Visakhapatnam Port Trust currently holds a 73.47% shareholding in the company, with remaining being held by the public.