BAJAJ BROKING
Cochin Shipyard Ltd. (CSL) concluded the fourth quarter of FY25-26 with a robust financial performance, marked by significant growth in both revenue and net profit. The company's shares responded positively, with the Cochin Shipyard Ltd Share Price witnessing an uptick following the announcement.
Revenue Growth: CSL reported a 37% year-on-year increase in revenue from operations, reaching ₹1,757.65 crore in Q4 FY25, up from ₹1,286.04 crore in Q4 FY24.
Net Profit: The net profit for the quarter stood at ₹287.18 crore, marking an 11% rise compared to ₹258.88 crore in the same period last year.
Operating Margin: Despite the revenue growth, the operating margin declined to 23% in Q4 FY25 from 29% in Q4 FY24, attributed to increased input costs and a changing project mix.
Dividend Declaration: The board recommended a final dividend of ₹2.25 per equity share for FY25, in addition to interim dividends of ₹3.50 and ₹4.00 declared earlier in the year.
Particulars | Q4 FY25 (₹ Cr) | Q3 FY24 (₹ Cr) | Q4 FY24 (₹ Cr) | FY25 (₹ Cr) | FY24 (₹ Cr) |
Income | |||||
Revenue from operations | 1757.6509 | 1147.6355 | 1286.0490 | 4819.9588 | 3830.4542 |
Other income | 157.1413 | 46.7836 | 80.1185 | 389.0650 | 310.1809 |
Total income | 1914.7922 | 1194.4191 | 1366.1675 | 5209.0238 | 4140.6351 |
Expenses | |||||
Cost of materials consumed | 701.3315 | 513.1025 | 626.5825 | 2134.0408 | 1734.4478 |
Changes in Inventories of Work-in-Progress | (4.7817) | (0.2680) | (0.2032) | (5.3285) | 0.6740 |
Sub contract and other direct expenses | 377.8344 | 229.6895 | 173.5618 | 879.2842 | 558.7642 |
Employee benefit expense | 117.0867 | 103.1571 | 109.5422 | 424.3689 | 386.2840 |
Finance cost | 11.7623 | 10.8503 | 6.6126 | 38.5755 | 33.2411 |
Depreciation and amortization expenses | 27.0898 | 31.5206 | 19.4828 | 103.1764 | 74.5782 |
Power & Fuel | 119.0661 | 1.4492 | 14.9971 | 128.0433 | 32.8791 |
Other expenses | 181.3348 | 63.0582 | 73.2692 | 381.6927 | 248.8291 |
Total Expenses | 1530.7239 | 952.5594 | 1023.845 | 4083.8533 | 3069.6975 |
Profit before tax | 384.0683 | 241.8597 | 342.3225 | 1125.1705 | 1070.9376 |
Tax expense | |||||
Current tax | 120.1943 | 55.4699 | 68.3079 | 295.5079 | 250.1634 |
Deferred tax | (32.0649) | 9.3998 | (17.9437) | (6.4190) | 4.4192 |
Tax relating to earlier years | 8.7511 | - | 33.0773 | 8.7511 | 33.0772 |
Profit for the period | 287.1878 | 176.99 | 258.881 | 827.3305 | 783.2778 |
Shipbuilding: Revenue from shipbuilding stood at ₹921.23 crore in Q4 FY25, a decrease of 6.5% compared to ₹985.15 crore in Q4 FY24.
Ship Repair: The ship repair segment witnessed a significant surge, with revenue increasing by 178% year-on-year to ₹836.41 crore from ₹300.89 crore in Q4 FY24.
Sector Expectations for Cochin Shipyard Ltd Q4 Results FY24-25
The defence sector has been under the spotlight, with analysts anticipating a substantial increase in order books for PSU shipbuilders like Cochin Shipyard. The company's strong performance in Q4 aligns with these expectations, especially in the ship repair segment, which has shown remarkable growth. However, the decline in operating margins indicates the need for strategic cost management moving forward.
Management Commentary
Cochin Shipyard's management highlighted the successful capitalization of two major infrastructure projects during FY25: the "International Ship Repair Facility" and the "New Dry Dock," amounting to ₹793.44 crore and ₹1,319.39 crore, respectively. These developments are expected to enhance the company's operational capabilities and support future growth.
For a complete overview of all upcoming and past earnings reports, check the Quarterly Results Calendar 2025.
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