Dredging Corp

This PSU was down in the red yesterday as the market was not very happy with the fact that the Govt was planning on Offer for sale in the stock, selling 5% stake. This is scheduled to open today morning and close at 3.30 PM. The Govt currently holds 78.56%.

This is a Miniratna  PSU engaged in the business of dredging and as expected, its major clients includes major ports and non ports, Indian navy, state Govts. For Q1FY16, on a 2% (YoY) rise in net sales at Rs.187 crore, net profit came in at Rs.17 crore, up 54%. 37% of its total cost comprises of fuel and lubricants and thanks to the drop in price of crude oil, this cost has come down 39% (YoY).  EBITDA improved 12% at Rs.47 crore and margins improved from 27.98% v/s 22.22%. Its equity stands at Rs.28 crore and reserves is at Rs.1446 crore