Dredging Corpn declares 120 pc dividend

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Mr N.K. Guptha, CMD, Dredging Corporation of India, at a press conference in Visakhapatnam on Thursday.
Mr N.K. Guptha, CMD, Dredging Corporation of India, at a press conference in Visakhapatnam on Thursday.

Our Bureau

Visakhapatnam, Sept. 29

DREDGING Corporation of India (DCI) has declared a dividend of 120 per cent (including interim dividend of 40 per cent) for 2004-05, amounting to Rs 38.21 crore inclusive of the dividend tax of Rs 4.61 crore, according to the Chairman and Managing Director, Mr N.K. Guptha.

He said at a press meet here that DCI had paid 120 per cent the previous year too, amounting to Rs 37.91 crore inclusive of the dividend tax of Rs 4.31 crore.

He said the dredging capacity available with DCI was 798 lakh cubic meters and during the year, the quantity dredged under various contracts was 723 lakh cubic meters, representing 91 per cent of the capacity.

Mr Guptha said there were plans to acquire two more dredgers one No TSHD of 5,000 cu. m. hopper capacity and one number cutter suction dredger of 2,000 cu m. solids per hour pumping capacity.

Currently, DCI had 10 trailer suction dredgers and two cutter suction dredgers.

He said DCI's turnover during the year was Rs 551.62 crore against Rs 560.93 crore of the previous year. The operational income for the year was Rs 524.79 crore (Rs 520.63 crore).

The profit before tax was Rs 175.87 crore (Rs 176.46 crore) and the net profit Rs 113.29 crore (Rs 170.01 crore).

He said the net profit had slumped due to payment of corporate tax on account of discontinuance of benefit under Section 33 AC of the I-T Act and the benefit of tonnage tax not being extended to dredgers.

"However, the tonnage tax is being extended to dredgers during the current financial year and it will improve our results," he said.

DCI had engaged PricewaterhouseCoopers (PwC), New Delhi, to identify and finalise joint ventures and special purpose vehicles with leading foreign companies and two foreign companies one in Holland and the other in Belgium had been identified, he said.

DCI had offered VRS for the third time and 10 employees had taken the offer, he said adding there would be no necessity for further pruning of the workforce. He said DCI was participating in the Sethusamudram Project and it had been granted a stretch of the channel on nomination basis.

He said, "The rate has not been finalised yet. It will be done after receiving the tenders for the other stretches by the end of the month."

He asserted that there need be no doubts over the project and there would be no ecological damage as all precautions were being taken. It would be economically viable and it was expected to become operational by mid-2008.

He said DCI had contributed Rs 6 crore towards tsunami relief.

(This article was published in the Business Line print edition dated September 30, 2005)
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