During Friday’s morning trading session, the shares of one of the leading shipbuilding and repair yards in India hit a 5 percent lower circuit at Rs. 1,449.4 on BSE, after the company reported muted Q2 FY25 results with low EBITDA margins.
With a market cap of Rs. 38,375.6 crores, at 11:21 a.m., the shares of Cochin Shipyard Limited were trading in the red at Rs. 1,458, down by nearly 4.4 percent, compared to its previous closing price of Rs. 1,525.65.
What’s the news:
The fluctuations in the share prices were observed after Cochin Shipyard Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges on Thursday post-market hours.
For Q2 FY25, Cochin Shipyard reported consolidated revenue from operations of Rs. 1,143 crores, reflecting a significant growth of around 48.2 percent QoQ from Rs. 771 crores in Q1 FY25, as well as a rise of about 13 percent YoY from Rs. 1,012 crores in Q2 FY24.
The company’s net profit for Q2 FY25 grew to Rs. 189 crores, representing a marginal rise of around 8.6 percent QoQ from Rs. 174 crores in Q1 FY25, and a year-on-year growth of nearly 4 percent from Rs. 182 crores in Q2 FY24.
At the operating level, Cochin Shipyard reported a 3.2 percent increase in EBITDA, reaching Rs. 197.3 crores in Q2 FY25, compared to Rs. 191.2 crores during the same period last year. The EBITDA margin stood at 17.3 percent in Q2 FY25, slightly lower than 18.9 percent in Q2 FY24.
The company also declared an interim dividend of Rs. 4 per equity share of Rs. 5 each fully paid up for FY25 and has fixed Wednesday, 20th November, as the Record Date for the interim dividend. eligible shareholders will receive the payment on or before 6th December 2024.
Additionally, the Board of Cochin Shipyard approved the proposal to raise funds of up to $50 million by way of issuance of US dollar-denominated non-convertible senior unsecured fixed rate notes. These notes may be issued in one or more tranches to eligible investors, in compliance with relevant laws and regulations.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 72.86 percent stake in the company, Foreign Institutional Investors (FII) hold a 3.84 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 20.31 percent and 3 percent stake in Cochin Shipyard, respectively.
Stock Performance:
The stock has delivered multibagger returns of nearly 178.4 percent in one year, and around 12.5 percent of positive returns in the last six months. So far in 2024, the shares of Cochin Shipyard have given multibagger returns of about 113.8 percent.
About the company:
Cochin Shipyard Limited, one of the leading shipyards in India located in the southern state of Kerala, is primarily engaged in the business of shipbuilding and repair of ships/offshore, serving both the domestic and international markets.
As of 31st March 2024, the Government of India holds 72.86 percent of the company’s equity share capital.
Written by Shivani Singh
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