Dredging Corp

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.

The company for Q3FY16 posted a 11% (YoY) drop in net sales at Rs.161 crore but only thanks to the lower costs and interest outgo did it post a 14% rise in net profit at Rs.8 crore. Costs were down 13% and this was mostly on account of the 21% drop in fuel and lubricants cost, which again was on account of lower crude oil price. Repairs and maintenance expense was down 57%.

Finance cost was down 28% at Rs.5 crore but tax outgo rose 77%. Its equity stands at Rs.28 crore and reserves is at Rs.1446 crore. Govt of India holds 73.56% stake v/s 78.56% (YoY).