- 22 Feb 2023
- ICICIdirect Research
KEEL LAID OF TWO ANTI-SUBMARINE WARFARE SHALLOW WATER CRAFTS HELD
COCHINSHIP - 1915 Change: 11.20 (0.59 %)News: In Cochin Shipyard's (CSL) Anti-Submarine Warfare - Shallow Water Craft (ASW-SWC) project of building eight warships, keel laying of the second and third ships (Malwan and Mangrol) has been held. The first ship of this project was keel laid in Aug 2022. Garden Reach Shipbuilder (GRSE) and CSL signed the contracts with MoD in April 2019 for construction of 16 ships (8 each with contract value of ? 6,311 crore) with a deadline of 84 months
Views: ASW-SWC is the second largest contract for CSL (with an estimated balance contract value of Rs 5600 crore) in its current order backlog of Rs 21000 crore. Execution of this project has witnessed muted execution from CSL which has impacted company's ship-building revenues in FY23E. Keel laying is a significant milestone in ship-building after plate cutting as the construction of ship begins meaningfully. We believe that pick-up in execution in this project and the largest contract of six new generation missile vessels would drive growth in ship-building segment in the coming period
Impact: Positive