Cochin Shipyard Limited(CSL) stock started its trading session at Rs 448.40 today and is currently trading at Rs 461.85. The stock witnessed an intra-day high of Rs 473.60 which is an upside of around 6.67 percent to the previous closing levels of Rs 444.
One of the reasons for such a stock movement today is with respect to an order received from NAVSHUTTLE 1 AS and NAVSHUTTLE 2 AS, Lysaker Norway, Companies in the Samskip Group, headquartered in the Netherlands, for the design and construction of a total of 2 ‘Zero Emission Feeder Container Vessels’ with an option for two more vessels.
The total cost of the project is approximated to be Rs. 550 crores and the first vessel is required to be delivered within a period of 28 months and the second to be within 34 months.
Cochin Shipyard Limited, incorporated in the year 1972, is a leading player pertaining to the construction of vessels, repairs, and refits including periodic upgradation and life extension of ships. It is India’s first Greenfield Shipbuilding Yard with a ship-building capacity of up to 1,10,000 DWTand.
It has developed its expertise from building bulk carriers to smaller ships and ships which are comparatively more advanced with respect to the technology such as Platform Supply vessels, Anchor Handling Tug Supply Vessels.
The company has expertise in offering various range of products such as Tankers, Product carriers, Bulk carriers, Passenger vessels, High bollard Pull tugs, and Air defence ships.
Having a quick glance at the financials of the company, it can be observed that the revenues and net profits have reduced in the quarter ending December 2022. Revenues moved down from Rs 683.18 crores in Q2 v/s Rs 641.65 crores in Q3. Net profits too shifted down from Rs 112.8 crores in Q2 v/s Rs 110.4 crores in Q3.
The negative movement in the figures discussed above is also showcased by the profitability ratios of the company. ROE reduced from 15.69 percent in FY20-21 to 13.39 percent in FY21-22. Moreover, ROCE reduced from 21.65 percent in FY20-21 to 18.89 percent in FY21-22.
Written by Amit Madnani
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