- 08 Nov 2023
- ICICI Securities
STRONG GROWTH LED BY PICK-UP IN EXECUTION
COCHINSHIP - 1904 Change: 65.00 (3.53 %)News: Revenue increased by 48.1% YoY (+112.6% QoQ) to Rs 1011.7 crore, led by strong growth in both the segments. Ship-building revenue (75% of total) increased by 44% YoY (+133.4% QoQ) to Rs 759.8 crore and ship-repair segment revenue (25% of total) grew by 61.9% YoY (+67.6% QoQ) to Rs 251.9 crore. Gross margin contracted by 473 bps (-1234 bps QoQ) to 34.9%. However, EBITDA margin contracted by only 90 bps YoY (+236 bps QoQ) led by positive operating leverage. Subsequently, EBITDA was up 41.4% YoY (+143% QoQ) to Rs 191.2 crore. Ship-building EBIT margin improved by 171 bps YoY (+52 bps QoQ) to 20% while ship-repair EBIT margin contracted by 526 bps YoY (+301 bps QoQ) to 27.3%. PAT came in at Rs 181.5 crore, up 60.9% YoY (+84% QoQ).
Views: Overall operational performance in Q2FY24 improved significantly as execution picked up sharply in both the segments (ship-building and ship-repair) after facing poor execution in the last few quarters due to some design changes and supply chain issues in few contracts. H1FY24 revenue growth stands at ~32% with EBITDA margin at 18.1% vs 14.8% in H1FY23. Company’s order backlog is estimated to be at ~| 21500 crore (~8x TTM revenues) provides strong revenue growth visibility. Order pipeline remains strong across defence & commercial ships/vessels (domestic and exports) and ship-repair.
Impact: Positive