Dredging Corporation of India Ltd Research ReportQ1FY20

Dredging Corporation of India reported strong revenues for Q1FY20 led by higher revenues from dredging contract in Bangladesh. Further EBITDA margins came at ~16% levels, led by higher other expenses to sales ratio, mainly due to lower margins from the Bangladesh contract (due to subcontracting). Subsequently, the absolute EBITDA and PAT de-grew 5% and 71% respectively due to the lower operational performance and higher depreciation expenses. Going forward, the management expects the cash inflow from SCI in Q4FY19 and its newer promoter structure to be beneficial for its working capital days going ahead.