Earnings Review
Higher costs restrict Cochin Shipyard PAT growth to 7% YoY
This story was originally published at 15:46 IST on 15 May 2025
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By Shakshi Jain
--Cochin Shipyard Jan-Mar net profit INR 2.85 bln vs INR 2.65 bln year ago
--Cochin Shipyard Jan-Mar revenue INR 16.51 bln vs INR 12.25 bln year ago
--Cochin Shipyard to pay INR 2.25 per share final dividend for FY25
--Cochin Shipyard FY25 net profit INR 8.43 bln vs INR 8.13 bln year ago
--Cochin Shipyard FY25 revenue INR 45.28 bln vs INR 36.45 bln year ago
--Cochin Shipyard Jan-Mar operating margin 23% vs 29% year ago
--Cochin Shipyard FY25 operating margin 26% vs 31% year ago
--Cochin Shipyard Jan-Mar ship building sales INR 8.15 bln vs INR 9.25 bln
--Cochin Shipyard Jan-Mar ship repair revenue INR 8.36 bln vs INR 3.01 bln
MUMBAI – Cochin Shipyard Ltd. Thursday reported a single-digit on-year rise in its bottom line for the March quarter despite a healthy double-digit growth in its top line for the quarter as total expenses of the company rose more than its revenue for the period. Further, tax expenses of the company grew in low teens for the quarter, adding to the tepid rise in its bottom line. Jan-Mar marks the eighth consecutive quarter of on-year growth in the company's top line, as well as growth in net profit after reporting a contraction in the December quarter.
Net profit of the shipbuilding and maintenance company grew over 7% on year and more than 54% sequentially to INR 2.85 billion in Jan-Mar. Its revenue rose almost 35% on year to INR 16.51 billion. Sequentially, the top line jumped over 54%.
Total expenses of the company in reporting quarter surged by over 49% on year to INR 14.30 billion. Within this, other expenses increased 2.6 times on year to INR 1.7 billion and sub-contrac and other direct expenses more than doubled to INR 3.45 billion. Cost of materials consumed, which comprises the largest chunk in the expenditure pie, rose over 10% to INR 6.5 billion and employee benefit expenses grew almost 6% to INR 1.1 billion for the quarter.
Cochin Shipyard's tax expenses in Jan-Mar rose over 13% on year to INR 916 million. Its operating margin during the quarter fell 600 basis points on year to 23%. The company reported a net profit margin of 17% for the March quarter, down from 22% in the base quarter.
Revenue from the public sector enterprises' ship building segment was INR 8.15 billion in Jan-Mar, down almost 12% on year. However, the ship repair segment of the company contributed INR 8.36 billion for the quarter, up from INR 3 billion a year ago.
For the full year, Cochin Shipyard reported a marginal on-year rise of around 4% in its net profit to INR 8.43 billion. Its revenue from operations rose over 24% to INR 45.29 billion in 2024-25 (Apr-Mar). Operating margin of the company fell 500 bps on year to 26% in FY25. The company will pay a final dividend of INR 2.25 per share for the year.
The company disclosed its earnings during market hours. At 1514 IST, shares of the company traded 6.1% higher at 1,802.70 a piece on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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