Advertisement
The Gulf conflict has disrupted global supply chains, pushed...
REITs have changed the way commercial real estate is owned a...
What does it take to preserve a real estate legacy while bui...
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Cochin Shipyard reported a 19.36% year-on-year decline in consolidated net profit for the June quarter, with profit falling to INR 151.45 crore from INR 187.82 crore in the corresponding quarter last year. The decline came even as total income increased to INR 1,161.25 crore. Higher expenses also affected profitability. Segment-wise, shipbuilding revenue increased sharply, while ship-repair revenue declined, resulting in a mixed quarterly performance. The state-owned company continues to operate across shipbuilding and ship-repair activities, with facilities in Kochi and other parts of the country.
State-owned Cochin Shipyard reported a 19.36% year-on-year decline in consolidated net profit for the June quarter, with profit falling to INR 151.45 crore compared with INR 187.82 crore in the same quarter a year earlier.
The company's total income increased to INR 1,161.25 crore during the quarter from INR 1,122.92 crore in the corresponding period of the previous fiscal year. However, the increase in income was accompanied by a rise in expenses, which limited the impact of higher revenue on the bottom line.
Total expenses stood at INR 958.76 crore during the quarter, compared with INR 873 crore a year earlier. The increase in costs came even as the company's overall income remained relatively stable year-on-year.
The company's consolidated revenue from operations rose 2.4% year-on-year to INR 1,094.21 crore. The segment performance, however, remained uneven. Revenue from shipbuilding increased 59.48% to INR 700.04 crore from INR 438.97 crore in the year-ago quarter. In contrast, revenue from ship repair declined 37.40% to INR 394.17 crore from INR 629.62 crore.
The decline in the ship-repair business offset a large part of the growth recorded in shipbuilding. Earnings before interest, tax, depreciation and amortisation (EBITDA) also declined to INR 193.18 crore from INR 241.36 crore in the corresponding quarter, while the EBITDA margin narrowed to 17.65% from 22.59%.
Cochin Shipyard is one of India's major shipbuilding and ship-repair companies. Incorporated as a Government of India company in 1972, the company began shipbuilding operations in the late 1970s and ship-repair operations in the early 1980s. It has since developed capabilities to build vessels of up to 1,10,000 DWT and repair ships of up to 1,25,000 DWT.
Its operations have also expanded beyond its main yard in Kochi. The company currently has ship-repair facilities in Kochi, Mumbai, Kolkata and Port Blair, along with its main shipyard and subsidiaries including Hooghly Cochin Shipyard and Udupi Cochin Shipyard.
The company has also been expanding its ship-repair infrastructure. Its International Ship Repair Facility at Cochin Port has a ship-lift and transfer system with six workstations and is designed to handle vessels of up to 130 metres in length and 6,000 tonnes of light weight. Ship-repair operations at the facility commenced in August 2024.
Cochin Shipyard's infrastructure includes a new 310-metre dry dock at its Kochi facility, designed to support the construction and repair of large and specialised vessels. The facility can handle vessels such as LNG carriers, large commercial ships and jack-up rigs, besides supporting repairs of offshore platforms and larger vessels.
The company's latest quarterly performance therefore reflects a gap between its two main operating segments. While stronger shipbuilding revenue supported overall income, the fall in ship-repair revenue and higher expenses weighed on profitability during the quarter.
Source PTI
Advertisement
Facebook
Whatsapp
