- 31 Jan 2024
- ICICI Securities
ROBUST GROWTH LED BY STRONG EXECUTION IN BOTH THE SEGMENTS
COCHINSHIP - 1915 Change: 11.20 (0.59 %)News: Revenue increased by 64.6% YoY (+4.4% QoQ) to Rs 1056.4 crore, led by strong execution in both the segments. Ship-building revenue (71% of total) increased by 63.2% YoY (flattish QoQ) to Rs 753.1 crore and ship-repair segment revenue (29% of total) grew by 68.3% YoY (+20.4% QoQ) to Rs 303.3 crore. EBITDA margin expanded by 617 bps YoY (+1046 bps QoQ), mainly led by positive operating leverage. Subsequently, EBITDA was up 108.5% YoY (+62.2% QoQ) to Rs 310.1 crore. Ship-building EBIT margin improved by 218 bps YoY (+658 bps QoQ) to 26.6% while ship-repair EBIT margin expanded by 874 bps YoY (+1418 bps QoQ) to 41.5%. PAT came in at Rs 244.4 crore, up 121.4% YoY (+34.6% QoQ). For 9MFY24, revenue is up 44% YoY (ship-building and ship-building revenue are up 37.2% YoY and 65.9% YoY respectively) with EBITDA margin stands at 22.8% (vs 17.9% in 9MFY23) led by significant expansion in ship-repair margins (EBIT margin at 32.7% in 9MFY24 vs 18.3% in 9MFY23).
Views: Overall performance during the quarter has improved significantly on YoY basis as execution picked up sharply in both the segments (ship-building and ship-repair) after facing muted execution in FY23 & Q1FY24 due to some design changes and supply chain issues in few contracts. With positive operating leverage and better gross margins, EBITDA margin for 9MFY24 is up 493 bps as ship-repair segment has witnessed significant improvement in margins. Company’s order backlog is estimated to be at ~Rs 21000 crore (~7x TTM revenues) provides strong revenue growth visibility. Order pipeline remains strong across defence & commercial ships/vessels (domestic and exports) and ship-repair.
Impact: Positive