KNOWLEDGE MARINE & EN W L

Knowledge Marine & Engineering Works Limited (KMEW) reported strong Q1 FY27 results, with revenue from operations at INR115.41 crores, a 138% YoY growth, and EBITDA of INR73.41 crores, up 258% YoY, reflecting a 64% EBITDA margin. Profit after tax reached INR62.75 crores, a 466% YoY increase with a 54% margin. The dredging segment was the primary revenue driver, fueled by two major projects: capital rock dredging at JNPA and maintenance dredging at Pondicherry port. KMEW highlighted its diversified dredging fleet, including trailing suction hopper dredgers and self-propelled backhoe dredgers, and emphasized efficient asset deployment. The company also secured a INR62.40 crore shipbuilding contract for hybrid electric ferries with the Inland Waterways Authority of India, aligning with India's Harit Nauka mission. The order book stands at INR1,300 crores, with INR240 crores in dredging, INR850 crores in charter and hire, and INR240 crores in shipbuilding. Management guided toward a potential 60% YoY growth for FY27, citing strong bid pipelines and upcoming projects. Capital allocation included a INR150 crore preferential issue and a INR100 crore secondary market deal. Future growth drivers include expanding dredging capacity and scaling shipbuilding, with a projected INR1,000 crore top line by FY29. The company noted a 50%+ hit rate on bids historically and expects continued strong execution. Management also addressed competition, stating that KMEW's efficiency and asset utilization provide a competitive edge, with minimal competition in dredging. The company is preparing for government initiatives like Samudra Manthan, acquiring larger dredgers for deep-sea mineral extraction.

The document emphasizes strong financial performance, growth in key segments, and confidence in future opportunities.