Knowledge Marine & Engineering Works Reports Mixed Q2 Results with Revenue Decline

Knowledge Marine & Engineering Works Limited (KMEW) has reported a mixed set of financial results for the second quarter, with a decline in revenue but maintained profitability.

Financial Performance

The company's consolidated net profit for Q2 stood at 119.00 million rupees, compared to 130.00 million rupees in the same quarter last year, marking a decrease of 8.46%. Revenue from operations declined to 502.00 million rupees from 525.00 million rupees year-over-year, a drop of 4.38%.

KMEW's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to 200.00 million rupees from 210.00 million rupees in the corresponding quarter of the previous year. The EBITDA margin slightly contracted to 39.81% from 40.08% year-over-year.

Segment Performance

The company's financial results reveal diverse performance across its business segments:

Dredging and Ancillary Services: This segment remained the largest contributor to revenue, generating 3,475.59 million rupees in Q2.
Ship Building and Repairing: A new addition to the company's portfolio, this segment contributed 1,541.77 million rupees to the quarterly revenue.
Geographical Segments: The company's operations in Bahrain and Myanmar (reported under Geographical - Dredging Services) did not contribute to the Q2 revenue.

Balance Sheet Highlights

As of September 30, KMEW reported:

Item	Amount (million rupees)	Previous Fiscal Year (million rupees)
Total assets	43,223.45	39,872.72
Total equity (including non-controlling interest)	24,260.92	21,988.55
Non-current borrowings	8,740.69	6,756.90

Corporate Actions

The company has announced a stock split, with each existing equity share of face value 10 rupees to be split into two equity shares of face value 5 rupees each. The record date for this corporate action has been set as December 22.

Additionally, KMEW has appointed Mr. Hemant Kumar Sibal as a Non-Executive Director, subject to shareholder approval. Mr. Sibal brings over 50 years of experience in the marine industry, including expertise in handling various maritime emergencies and accidents.

Outlook

While the company has faced some headwinds in terms of revenue and profit growth, the diversification into ship building and repairing, along with the maintained EBITDA margin, suggests resilience in its business model. The stock split may potentially enhance liquidity for shareholders, while the appointment of an experienced director could bring valuable insights to the company's operations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.96%	-0.77%	+16.70%	+74.23%	+25.89%	+25.89%

Knowledge Marine & Engineering Works Limited (KMEW), a prominent player in the maritime industry, has announced a significant development in its corporate structure. The company's CEO, Sujay Kewalramani, has acquired a substantial number of convertible warrants through a preferential allotment, signaling a strong vote of confidence in the company's future.

Key Details of the Acquisition

Aspect	Details
Acquirer	Sujay Kewalramani (CEO)
Number of Warrants	77,946
Total Value	Rs 3.70 crores
Warrant Type	Convertible into equity shares
Face Value of Shares	Rs 10 each
Conversion Period	Within 18 months from October 30, 2025

Impact on Shareholding

Post-acquisition, Mr. Kewalramani's stake in the company has seen a notable increase:

Holding Type	Number	Percentage
Equity Shares	7,925	0.07%
Convertible Warrants	77,946	0.63% (on fully diluted basis)

This transaction was disclosed under SEBI insider trading regulations, as Mr. Kewalramani is a designated person and a member of the promoter group.

Recent Company Developments

Coinciding with this insider acquisition, KMEW has also made significant strides in expanding its business operations. During the India Maritime Week 2025, held from October 27th to 31st, the company signed multiple high-impact Memorandums of Understanding (MoUs) with key maritime authorities:

Mumbai Port Authority
V. O. Chidambaranar Port Authority
Maharashtra Maritime Board

These MoUs, valued at Rs 1,560 Crores, encompass a wide range of services including:

Chartering, manning, operation, and maintenance of conventional and battery-operated harbor tugs
Provision of dock tugs and security patrol boats
Facilitation of shipbuilding and ship repairing facilities

CEO's Perspective

Commenting on these developments, Mr. Sujay Kewalramani stated, "These partnerships are more than commercial engagements—they are a testament to KMEW's role in supporting India's transition to a green and globally competitive maritime sector." He further emphasized the company's alignment with national sustainability goals and its vision to become a billion-scale enterprise in the coming years.

The acquisition of convertible warrants by the CEO, coupled with these strategic MoUs, underscores KMEW's commitment to growth and innovation in the maritime sector. As the company continues to expand its operations and strengthen its market position, investors and industry observers will be keenly watching its progress in the evolving landscape of India's maritime industry.