Dredging Corporation Of India Ltd. share price target

New initiatives to garner higher revenue growth During FY19, the company utilised 77% of the number of days (2501 days against a target of 3228 days) and it dredged 54.5 cu.m. against 63.9 cu.m. (85% utilisation). It has won 16 new contracts and completed 16 important contracts during FY19. Dredging Corp garners highest revenues from a maintenance dredging contract at Kolkata Port Trust (~|1120 crore for five years), followed by maintenance dredging contract at Cochin Shipyard (|110 crore for five years) and a capital dredging contract (|103 crore for 15...

Better fleet utilisation expected to continue in FY20 FY19 has been a moderate year for the company with FY19 revenues and EBITDA increasing (12%, 5% respectively) on a YoY basis. Dredging Corp garners highest revenues from a maintenance dredging contract at Kolkata Port Trust (~| 1120 crore for five years), followed by maintenance dredging contract at Cochin Shipyard (| 110 crore for five years) and a capital dredging contract (| 103 crore for 15 months). Overall, the company has commitments tied to over nine clients totalling over | 1680 crore to be...

ICICI Securities Ltd | Retail Equity Research Revenues grew 38% YoY at | 165 crore (I-direct estimate: | 132 crore), mainly due to better fleet utilisation & low base. The base quarter was impacted by employee strikes against privatisation of the company The EBITDA margin increased 290 bps to 23.4%, leading to an...

ICICI Securities Ltd | Retail Equity Research Revenues remained flat YoY at | 148 crore Optically, absolute EBITDA came in at a loss of | 46 crore vs. profit of | 41 crore in Q2FY18. However, adjusting for the one-off, EBITDA declined 6% to a profit of | 38 crore while adjusted EBITDA margin declined 132 bps to 25.7% and came in higher than I-direct estimate of 22%. The one-off was on the account of a provision of bad and doubtful debt, amounting to | 84 crore as receivable from Government...

ICICI Securities Ltd | Retail Equity Research Revenues de-grew 11% YoY to | 140 crore (I-direct estimate: | 150 crore). Revenue growth appears to have contracted after growing 17% YoY in Q4FY18, due to lower utilisation of fleet EBITDA margin declined 33 bps to 23.3% (I-direct estimate: 22%), mainly due to higher other expenses to sales ratio (58.7% in Q1FY19 vs 58.5% in Q1FY18). Absolute EBITDA de-grew 13% to | 33 crore (Idirect estimate: | 33 crore) Subsequently, PAT de-grew 28% to | 3 crore and was higher than Idirect estimate of | 2 crore...

However, PAT grew 358% to | 17 crore (I-direct estimate: | 3 crore), mainly due to higher other income (| 15 crore in Q4FY18 vs | 6 crore in Q4FY17) and lower tax rate (15% in Q4FY18 vs 36% in Q4FY17) EBITDA growth revival visible in FY18 For FY18, revenues were flattish with growth of 1% to | 592 crore vs. | 586 crore in FY17. However, the EBITDA margin has improved 280 bps YoY to 22.8% in FY18. The improvement in EBITDA margin has been owing to fuel expense as a percentage of sales declining 200 bps from...

In addition to a weak operational performance, higher interest expense (up 8% YoY) coupled with increase in depreciation (up 19% YoY) led DCI to report a loss of | 22.5 crore (I-direct estimate: | 2.1 crore) Sluggish YTD performance; revival to take some time DCI posted five-year low revenues of | 119.9 crore (vs. a normal run rate of | 140-160 crore. For 9MFY18, revenues de-grew 6% YTD to | 428.4 crore vs. | 455.7 crore in 9MFY17. However, benefiting from lower crude prices in FY18, EBITDA for the same period grew marginally by 6% YoY...

ICICI Securities Ltd | Retail Equity Research Revenues remained flattish YoY (up 2% QoQ) to | 161.3 crore (I-direct estimate: | 169 crore). The reported revenues includes an insurance claim of | 10.8 crore, adjusting for the same revenues stood at degrowth of 7% YoY to | 150.5 crore EBITDA, optically, more than quadrupled to | 51.4 crore as compared our estimate of | 40 crore. The Q2FY17 EBITDA was impacted by higher dry-docking resulting higher spares and stores expenses. Adjusted for the insurance claim, EBITDA stood at | 40.7 crore....

ICICI Securities Ltd | Retail Equity Research Revenues grew 11% YoY and 21% QoQ to | 157.9 crore vs. our estimate: | 174.8 crore. Though revenue was lower than our estimate...

ICICI Securities Ltd | Retail Equity Research Revenues de-grew 26% YoY (down 14% QoQ) to | 130 crore (I-direct estimate: | 180 crore) compared to | 176.7 crore in Q4FY16 and | 152 crore in Q3FY17. Revenues continue to stay impacted with Kolkata port scaling down its dredging expenses On account of a deceleration in execution, operating expenses degrew 31% YoY. Also employee expenses de-grew 49%. The resultant EBITDA grew 25% YoY (down 9% QoQ) to | 36.5 crore (I-direct estimate: | 52.7 crore). Following this, EBITDA margins were at 28%...

ICICI Securities Ltd | Retail Equity Research Revenues de-grew 6% YoY (down 6% QoQ) to | 151.9 crore (I-direct estimate: | 164.6 crore). Other operating income continued to remain high at | 12.5 crore compared a negligible amount in Q3FY16. Revenues for the quarter were adversely impacted by dry dock (repairs), which were, to an extent, guarded by improved realisation EBITDA for the quarter grew 15% YoY to | 40.2 crore (vs. our estimate: | 32.6 crore) vs. | 11.1 crore in Q2FY17 and | 34.9 crore in...

ICICI Securities Ltd | Retail Equity Research DCI's Q2FY17 revenues de-grew 2% YoY (up 13% QoQ) to | 161 crore (I-direct estimate: | 144 crore). Other operating income continued to remain high at | 4.9 crore compared to a negligible amount in Q2FY16. Revenues for the quarter were adversely impacted by dry-dock (repairs), which were, to an extent, guarded by improved realisation EBITDA was significantly lower (more than halved) at | 11 crore (vs. our estimate: | 33.7 crore) compared to | 29 crore in Q1FY17 and | 45...

Dredging corporation of India (DCI) Q1FY17 operating revenues degrew 21% (down 24% QoQ) to | 132 crore. However, due to write back of repair liability to an extent of | 6 crore accounted in other operating income the de-growth in total revenues moderated to 15% YoY (down 19% QoQ) to | 142 crore (I-direct estimate: | 171.4 crore) . Following the lower execution, EBITDA for the quarter was impacted by higher fixed costs. Subsequently, EBITDA declined by 37% YoY (down 46% QoQ) to | 29 crore (I-direct estimate: | 46.7 crore) . Dismal operating performance coupled with continued higher depreciation resulted a PAT of | 4 crore (I-direct estimate: | 19 crore) as compared to | 46 crore in Q1FY16 and | 54 crore in Q4FY16.

Although, DCI added three new three new maintenance dredgers since 2012, the revenues grew maintenance dredgers since 2012, the revenues grew by mere 8% CAGR by mere 8% CAGR over FY12 to FY16. The over FY12 to FY16. The proceeds from proceeds from proceeds from Sethusamudram project Sethusamudram project Sethusamudram project to the tune of tune of | 300 -400 crore 400 crore 400 crore is taking long time to accrue. I is taking long time to accrue. I is taking long time to accrue. Indigenization of ndigenization of spares for spares from BEML and improved efficiency spares for spares from BEML and improved efficiency due to due to refurbishment of aged dredgers would remain key for margins. margins. Given the Given the incessant deterioration in revenues incessant deterioration in revenues in revenues we revise our esti we revise our esti we revise our estimates downwards mates downwards and reduce our target price to | 425 with a HOLD and reduce target price to | 425 with a HOLD rating. rating.

ICICI Securities Ltd | Retail Equity Research Dredging Corporation of India's (DCI) Q4FY16 revenues sequentially grew 9% (down 8% QoQ) to | 177 crore vs. our expectation of | 184...

We recently met the management of Dredging Corporation of India (DCI), to get an insight into the various initiatives taken by the government to promote shipping and coastal activities in India and DCI's role in the...

DCI's operating revenue decline by 5% and up by 3% on Y-o-Y and Q-o-Q basis respectively during the Q4FY15.EBITDA has seen massive jump by 54% and 91% on Y-o-Y and Q-o-Q basis respectively during the quarter because repair and maintenance has dropped by 94% and 99% on Y-o-Y and Q-o-Q basis respectively.

Dredging Corporation of India (DCI) is a public sector company providing integrated dredging services for major ports, non-major ports, the Indian Navy and ship yards in the form of maintenance dredging, capital dredging, reclamation, hydrographic surveys and beach nourishment in India.