Business News | KMEW Bags a Rs 68 Cr Order from Dredging Corp, Order Books Surpasses Mcap
Get latest articles and stories on Business at LatestLY. Knowledge Marine and Engineering Works Limited (KMEW) has been awarded a contract worth Rs 67.85 crore exclusive of taxes, taking its entire order book to race past Rs 250 crore mark, higher than its existing market cap.
New Delhi [India], June 2 (ANI/PNN): Knowledge Marine and Engineering Works Limited (KMEW) has been awarded a contract worth Rs 67.85 crore exclusive of taxes, taking its entire order book to race past Rs 250 crore mark, higher than its existing market cap.
The company has bagged the latest contract for capital dredging at Mangrol Fishing Harbours Phase III from the state owned Dredging Corporation of India (DCI).
At the beginning of the current financial year KMEW had an order book of Rs 182 crore and with the new order win, it has zoomed to Rs 250 crore, which is equal to its marketcap, according to Wednesday's closing price.
The company expects to register a turnover of more than Rs 125 crore in the current fiscal year, by completing half of the order book. Also, there would be no additional capital expenditure incurred by the company.
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The order is slated to be completed in two stages, whose timeline ends on June 15, 2023. Also, the contract can be extended if the quantity of work increases more than 20 per cent, KMEW said in a regulatory filing.
KMEW will be involved in excavating and removing the rocks and sediments from the seabed to increase the depth of the navigation channels, berthing areas to ensure safe passage for the fishing boats.
This is KMEW's first ever rock dredging contract. With this contract, the company has added another stream of revenue in its kitty. However, the company has been a pioneer in various types of dredging activities.
Through the contract, the focus is to develop a fishing harbour at the Gujarat based Mangrol Port, which will uplift 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 deploy their 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 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 an opportunity for us to establish ourselves in relatively newer areas like rock dredging, and fishing harbour development."
The Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying has been implementing a flagship scheme namely Pradhan Mantri Matsya Sampada Yojana (PMMSY) with a highest-ever investment of Rs 20,050 crore in all States/Union Territories (UTs) including in the State of Tamil Nadu for development of fisheries with effect from financial year 2020-21.
This story is provided by PNN. ANI will not be responsible in any way for the content of this article. (ANI/PNN)
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