KMEW wins Rs 68 cr order from Dredging Corp, order books exceed mcap
New Delhi [India], Jun 2 (ANI/PNN): Knowledge Marine and Engineering Works Limited (KMEW) has won a contract worth Rs 67.85 crore excluding tax, taking its entire order book to over the Rs mark 250 crore, higher than its existing market cap. The company has won the latest capital dredging contract at Mangrol Fishing Harbors Phase III from the state-owned Dredging Corporation of India (DCI).
At the start of the current financial year, KMEW had an order book of Rs 182 crore and with the new order won, it soared to Rs 250 crore, which is equal to its market capitalization, according to Wednesday’s closing price. . The company expects to record revenue of over Rs 125 crore in the current financial year, completing half of the order book. Also, there would be no additional capital expenditure incurred by the business.
The order is expected to be completed in two stages, with the timeline ending on June 15, 2023. Additionally, the contract can be extended if the amount of work increases by more than 20%, KMEW said in a regulatory filing. KMEW will participate in the excavation and removal of rocks and sediments from the seabed to increase the depth of navigation channels, berthing areas to ensure safe passage for fishing vessels.
This is KMEW’s first-ever rock dredging contract. With this contract, the company has added another source of income to its kitty. However, the company has pioneered various types of dredging activities. Under this contract, the objective is to develop a fishing port in the Gujarat-based port of Mangrol, which will improve the coastal and marine infrastructure of the region.
The company has partnered with Sahara Dredging Limited for the smooth execution of the project and will soon be deploying its fleet to carry out the work. Commenting on the performance, Sujay Kewalramani, CEO of Knowledge Marine & Engineering Works Limited said, “We are extremely proud to announce that we have been awarded our first contract by Dredging Corporation of India for rock dredging. This contract demonstrates our responsible business strategy and practices. This is an important contract which should provide KMEW with many opportunities in the years to come. This is also important as the contract gives us the opportunity to establish ourselves in relatively new areas such as rock dredging and fishing port development. .”
The Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairy Industry has implemented a flagship program i.e. Pradhan Mantri Matsya Sampada Yojana (PMMSY) with highest ever investment of Rs 20,050 crore in all States/Union Territories (UT) including in the State of Tamil Nadu for fisheries development commencing in the financial year 2020-21. This story is provided by PNN. ANI will not be responsible for the content of this article. (ANI/PNN)
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