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- 09 Aug 2024
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COCHIN SHIPYARD - STRONG GROWTH CONTINUES IN BOTH THE SEGMENTS
COCHINSHIP - 2179 Change: 93.50 (4.48 %)News: Cochin Shipyard reported strong set of numbers on YoY basis in Q1FY25. Revenue increased by 62.1% YoY to Rs 771.5 crore, led by strong execution in both the segments. Ship-building revenue (68% of total) increased by 61.8% YoY to Rs 526.7 crore and ship-repair segment revenue (32% of total) grew by 62.9% YoY to Rs 244.8 crore. Sequentially, revenue was down 40% as execution was lower (vs Q4FY24) in both the segments. EBITDA margin expanded sharply by 645 bps YoY (+57 bps QoQ) to 23.0%, primarily led by positive operating leverage. Subsequently, EBITDA was up significantly by 125.4% YoY to Rs 288.3 crore. EBIT margin of ship-building stood at 17.4% (-206 bps YoY, -15 bps QoQ) while for ship-repair, it stood at 43.0% (+1872 bps YoY, -95 bps QoQ). PAT increased by 76.6% YoY (-32.7% QoQ) to Rs 258.9 crore.
Views: Execution remains strong in both the segments (ship-building and ship-repair) on YoY basis. Order backlog stands healthy at ~Rs 21500 crore (5.4x TTM revenues), providing strong revenue growth visibility. Order pipeline remains robust across defence & commercial ships/vessels (domestic and exports) and ship-repair. Moreover, recent commissioning of ship-building and ship repair facilities have significantly augmented the company's capacity and overall capabilities. On the margins front, we believe that EBIT margin of 43% in ship-repair is primarily driven by timely execution of some short-term orders and expected to come down in the coming quarters. Management had also guided blended EBITDA margin of 17-19% in the coming periods with ship-repair EBIT margins of 22-23%.
Impact: Positive