Cochin Shipyard shares crash 11% as Q4 results disappoint

Shares of Miniratna Cochin Shipyard plunged 11 per cent in Monday's trade following a poor set of March quarter results. The company reported 83.33 per cent plunge in net profit at Rs 47.34 crore for the quarter compared with Rs 284.07 crore in the corresponding quarter last year. Total income of the company tumbled 51.18 per cent to Rs 646.45 crore compared with Rs 1,324.23 crore in the same quarter last year.

Following the development, shares of Cochin Shipyard sank 11.19 per cent to hit a low of Rs 479.40 on BSE. This was the fourth straight day of fall for the stock. Cochin Shipyard has declined 13 per cent in the four sessions.

Cochin Shipyard caters to clients engaged in the defence sector in India and clients engaged in the commercial sector worldwide. In addition to shipbuilding and ship repair, it offers marine engineering training. The company is in the process of constructing a new dock, a ‘stepped’ dry dock (Dry Dock). This stepped dock will enable longer vessels to fill the length of the dock and wider, shorter vessels and rigs to be built or repaired at the wider part. It is also in the process of setting up an International Ship Repair Facility (ISRF), which includes setting up a ship-lift and transfer system.

On consolidated basis, the company has reported 85.68 per cent fall in its net profit at Rs 39.34 crore for fourth quarter compared with Rs 274.62 crore in the same quarter last year. Consolidated total income of the company dived 49.31 per cent to Rs 671.32 crore compared with Rs 1,324.26 crore in the corresponding quarter previous year. Net profit margin for the quarter came in at 10 per cent against 17 per cent in December quarter and 23 per cent in the year-ago quarter.

For the year, the company reported 42.98 per cent fall in its net profit at Rs 334.49 crore compared with Rs 586.57 crore for the previous year. Total income of the company decreased by 26.60% at Rs 2,536.95 crore for year under review compared with Rs 3,456.42 crore for year ended March 31, 2022.

On a consolidated basis, the company has reported 45.97 per cent fall in its net profit at Rs 304.71 crore for FY23 compared with Rs 563.96 crore for the previous year. Total income of the company decreased 25.54 per cent to Rs 2,571.57 crore compared with  Rs 3,453.76 crore in FY22.

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