Earnings |Cochin Shipyard Ltd. (NSE:COCHINSHIP): Q3FY23 Results Out; Total Income fell 34% YoY

Cochin Shipyard Ltd. (NSE:COCHINSHIP) is one of the largest shipbuilding and maintenance facilities in India, located in Kochi, Kerala. It was established in 1972 and is primarily engaged in the construction of commercial and defence vessels. The company also offers ship repair services, including refits and upgrades, and provides consultancy services for shipbuilding and repair projects. In addition, the company has diversified into the manufacture of marine pumps, valves, and other equipment.

Cochin Shipyard Ltd (CSL) reported its financial results for the third quarter of FY23, showing a decline in net profit and revenue compared to the same period in the previous year. In Q3FY23, the company’s net profit was ₹110.40 Cr, down 14% from ₹129.38 Cr in Q3FY22. Meanwhile, the company’s profit before tax (PBT) was ₹140.46 Cr, down 19.75% YoY from ₹175.04 Cr in the previous year. The company recorded revenue from operations of ₹641.65 Cr in Q3FY23, down 32% YoY from ₹952.88 Cr in Q3FY22. The company’s net expenses in Q3FY23 were ₹524.38 Cr, down from ₹840.86 Cr in the previous year. The company’s earnings per share (EPS) in Q3FY23 were ₹8.39, down from ₹9.84 in Q3FY22.

CSL’s revenue declined ~34% YoY and ~8% QoQ, reflecting the phase of reducing contribution of the IAC order and potentially more time being taken by recent defence order wins (ASV Corvette, Next Generation Missile Vessels) to become relevant. However, the company’s EBITDA margin improved 948 bps/459 bps YoY/QoQ, and other income declined meaningfully potentially reflecting the effect on profitability and cash flows to the current volatile revenue mix. The company’s profit after tax (PAT) in Q3FY23 was ₹1.18bn, a decline of 12% YoY but a growth of 5% QoQ. CSL has a track record of exporting around 50 high-end vessels to the US, Germany, Netherlands, Norway, Denmark, and the Middle East over the past two decades. With its recent construction and delivery of Zero Emission Autonomous Cargo Ferries to Norwegian client ASKO, CSL has positioned itself as the yard of choice for European clients.

In summary, Cochin Shipyard Ltd reported a decline in net profit and revenue in Q3FY23 compared to the same period in the previous year. However, the company’s EBITDA margin improved, and CSL’s track record of exporting high-end vessels and recent construction and delivery of Zero Emission Autonomous Cargo Ferries positions it as a leading shipbuilding and maintenance facility in India