Board recommended final dividend
Awaiting price reaction for this filing.
Cochin Shipyard's board has recommended a final dividend of Rs. 2.25 per equity share (face value Rs. 5) for FY25, subject to shareholder approval at the AGM. This is on top of two interim dividends already declared — Rs. 4.00 (Nov 2024) and Rs. 3.50 (Feb 2025) — taking total dividend for the year to Rs. 9.75 per share. Standalone FY25 revenue from operations grew about 24% YoY to Rs. 4,528 crore, while profit after tax rose modestly to Rs. 843 crore from Rs. 813 crore, giving EPS of Rs. 32.04 vs Rs. 30.91 last year. Q4 FY25 was particularly strong with revenue of Rs. 1,651 crore and PAT of Rs. 285 crore, sharply higher than Q3 FY25 (Rs. 1,070 crore revenue, Rs. 184 crore PAT). The Ship Repair segment nearly doubled YoY to Rs. 1,865 crore, while Shipbuilding stayed roughly flat. Major projects — the New Dry Dock (Rs. 1,319 crore) and International Ship Repair Facility (Rs. 793 crore) — were capitalized during the year, reflecting the large capex phase. The auditor flagged that the company currently has no independent directors, so an Audit Committee could not be constituted, a governance issue worth noting.
Total dividend of Rs. 9.75/share rewards shareholders with steady income, but at the stock's premium valuation the yield remains modest. Solid revenue growth and a sharp pick-up in ship repair earnings support the dividend, though the flat shipbuilding top line and ongoing governance concerns (lack of independent directors) are points investors should weigh.