Now Reading: Cochin Shipyard Q1 net profit drops 19.4% to Rs 151 crore
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Cochin Shipyard Q1 net profit drops 19.4% to Rs 151 crore
Cochin Shipyard's consolidated net profit fell 19.4% year-on-year to Rs 151.5 crore in the June quarter, as operating margins narrowed despite a slight rise in revenue. Revenue from operations increased 2.4% to…
The Story in Brief
Cochin Shipyard's consolidated net profit fell 19.4% year-on-year to Rs 151.5 crore in the June quarter, as operating margins narrowed despite a slight rise in revenue. Revenue from operations increased 2.4% to Rs 1,094 crore, but total expenses rose 9.1%, driven by higher material and finance costs.
Segment performance diverged sharply: shipbuilding revenue jumped 59.5% to Rs 700 crore, while ship-repair revenue tumbled 37.4% to Rs 394 crore. EBITDA margin slipped to around 17.7% from 22.5% a year ago. The stock, which closed at Rs 1,492 on the NSE, remains nearly 50% below its July 2024 record high of Rs 2,979.
The Indian Opinion
The profit drop is being framed as a setback, but the shipbuilding segment's strong growth shows the company's core order book is intact. The real drag is the repair business, which swung sharply lower. Rather than reading too much into one quarter's margin squeeze, the key test will be whether the repair segment recovers in the coming quarters. If it does, the stock's slide may be overdone.
Sources (2): livemint.com, ndtvprofit.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
