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News: Cochin Shipyard has bagged an order from a European Client, for the design and construction of a Hybrid Service Operation Vessel (Hybrid SOV) with an option for two more such vessels. As per the press release, the order value is estimated to be in the range of Rs 500-1000 crore. The vessel is designed and built for the service, maintenance and operational needs of the offshore wind farm industry in the European market where sustainable energy solutions are in high demand. The project is expected to be completed by 2026 end.
Views: Europe remains a key export region for Cochin Shipyard as the company is already in process of executing ~Rs 2600 crore worth of commercial ship-building contracts from Europe. With this order, company's order backlog is estimated to be at ~Rs 22000 crore (7.3x TTM revenues). Execution has also picked up considerably in major defence contracts, implies strong growth in coming period. Moreover, recent commissioning of ship-building and ship repair facilities have significantly augmented the company's capacity and overall capabilities.
Impact: Positive