Cochin Shipyard cruised over 4% higher to its intraday high on the National Stock Exchange ahead of the March quarter results. The company shares extended the gains for the fifth consecutive session and are over 22% higher than the closing price on May 8. The company is scheduled to announce its Q4 earnings, along with final dividend if any today.
Earlier this week the state-owned company and Drydocks World advanced their collaboration to develop ship repair clusters in India. The said collaborative effort will also bolster India’s offshore fabrication capabilities and support marine engineering training and skilling initiatives.
Cochin Shipyard is expected to post a moderate growth in its March-quarter revenue due to slow order wins and lower executions. However, reports suggest that its operational efficiency will likely be stronger for the quarter under review and going forward, the order book growth is expected to remain strong due robust order pipeline by the government on warships.
In the December quarter, the company’s revenue rose 8.6% year-on-year to Rs 1,147 crore, up from Rs 1,056 crore in the same quarter last year. However, operating profit fell 23% to Rs 237 crore from Rs 310 crore a year ago. Net profit also saw an on-year decline of 27%, coming in at Rs 176 crore for the quarter.
The company, yesterday, uploaded a clarification related to reports on the company being in talks with HD Hyundai for Rs 10,000-crore project. Cochin Shipyard said, “CSL is also evaluating strategic possibilities with multiple entities which are at various stages. However, at this stage, there is no material event/ information that require disclosure.”
The stock hit its 52-week low of Rs 1,180.20 in February this year and its 52-week high of Rs 2,979.45 in July last year. Shares have gained over 32% in the past year and 23% in the last month. Cochin Shipyard is a leading player in building various vessels and carrying out repairs, refits, upgrades, and life extensions for a wide range of ships.
