- 04 Nov 2022
- ICICIdirect Research
COCHIN SHIPYARD RECEIVES EXPORT ORDER FROM EUROPE FOR BUILDING VESSELS
COCHINSHIP - 1839 Change: 161.15 (9.60 %)News:
Cochin Shipyard has bagged an international order for constructing two commissioning service operation vessels (CSOV) from a European Client, with an option to build four more such vessels to be exercised by the owner within one year. The estimated project cost for the firm order is ~Rs 1000 crore and the project completion time is 35 months. These specialised vessels, which are being contracted for the first time in the country, are intended for the services of offshore wind farm installations towards its commissioning and maintenance
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With this export contract, CSL’s order backlog is estimated to be ~Rs 21000 crore (~6.3x TTM revenues), which includes large orders from Indian Navy like building six next generation missile vessels (order value Rs 10000 crore) and anti-submarine warfare corvettes (order worth Rs 5900 crore). The company is in the process of executing two more export orders (Norway, Germany) of 10 vessels and has been exploring more business opportunities in Europe. With healthy order backlog and strong opportunities in shipbuilding (in both domestic & exports) and ship repair, CSL has a strong revenue visibility for the coming years
Impact:
Positive