Stock Report

Knowledge Marine & Engineering Works receives a contract from Dredging Corporation of India worth Rs. 68 Crores

Posted On : 2022-06-01 18:26:00( TIMEZONE : IST )

Knowledge Marine & Engineering Works Ltd. "KMEW" (BSE: 543273), has been awarded a contract for Capital Dredging at Mangrol Fishing Harbour Phase III Part B by Dredging Corporation of India (DCI) on 31st May, 2022 for a tenure of 12 months. The total project is valued at Rs. 67.85 crores plus GST. The project is being developed under the Pradhan Mantri Matsya Sampada Yojana (PMMSY).

This contract involves the excavation or removal of rock and sediment from the seabed, to increase the depth of the navigation channels, berthing areas to ensure the safe passage of fishing boats.

This will be first ever rock dredging contract for KMEW and is a testament to the Company's capability across various types of dredging activities. This contract is anticipated to assist the Company in winning other rock dredging contracts in India.

The contract will focus on developing fishing harbour at the Mangrol Port which will help the coastal and marine infrastructure developments of the region.

Developing a fishing harbour has always been a part of KMEW's mid term strategy and KMEW is proud to have ventured into this segment in such a short span. This contract will establish the Company as one of the leading companies in the fishing harbour dredging segment. With this contract the Company has added another stream of revenue in its kitty and expect to grow this vertical going forward with future contract wins for the segment.

KMEW has partnered with Sahara Dredging Limited to execute this project. Company will be deploying the fleet of Sahara Dredging Limited to carry out the said work. There will be no upfront capex for this project which will ensure better operating margins and return ratios for the Company.

KMEW intends to use this model of strategic partnership in most of its future contracts to reduce Capex Cost, improve profitability and enter into different segments.

The contact will be completed in two stages and is to be completed by 15th June 2023. The Contract can further be extended if the quantity of work increases more than 20%.

The contract is to be executed in a very short span of time which demonstrates the capability and brand value that KMEW has created for itself in the dredging and other marine related services it operates.

Commenting on the performance, Mr. Sujay Kewalramani, CEO of Knowledge Marine & Engineering Works Limited said: "We are extremely proud to announce that we have received our first contract by Dredging Corporation of India for rock dredging. This contract is a testimony to our strategy and responsible business practices. This is a significant contract and is anticipated to provide KMEW with numerous opportunities in the years ahead. This is also important as the contract provides opportunity for us to establish ourself in relatively newer areas like rock dredging, and fishing harbour development."

Shares of Knowledge Marine & Engineering Works Ltd was last trading in BSE at Rs. 245.00 as compared to the previous close of Rs. 233.90. The total number of shares traded during the day was 21000 in over 24 trades.

The stock hit an intraday high of Rs. 250.00 and intraday low of 235.00. The net turnover during the day was Rs. 5106750.00.