Financial Results for the Year ended March 31, 2025
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Cochin Shipyard reported strong topline growth for FY25 with standalone revenue from operations rising about 24% to ₹4,527.84 crore (from ₹3,645.28 crore in FY24) and consolidated revenue up about 26% to ₹4,819.96 crore. However, profit growth lagged significantly—standalone PAT grew only ~3.7% to ₹842.91 crore (EPS ₹32.04 vs ₹30.91) and consolidated PAT grew ~5.6% to ₹827.33 crore—reflecting sharp margin compression as operating margin fell from 31% to 26% standalone and 29% to 24% consolidated. The Board recommended a final dividend of ₹2.25 per share, taking total FY25 dividends to ₹9.75 per share (₹4.00 in Nov'24, ₹3.50 in Feb'25, ₹2.25 final). Operating cash flow remained deeply negative at -₹269 crore standalone, though the company capitalised two major projects—International Ship Repair Facility (₹793 crore) and New Dry Dock (₹1,319 crore). The auditor issued an unmodified opinion with an emphasis-of-matter note on delayed delivery of two 1200-passenger ships where liquidated damages beyond April/October 2023 have not been recognised.
Strong revenue growth driven by ship repair business (nearly doubling) is positive for long-term capacity story, but margin compression and negative operating cash flow raise concerns about near-term profitability and working capital. Governance flag: absence of independent directors and non-constitution of Audit Committee is a compliance issue. Total dividend of ₹9.75/share offers decent shareholder return despite muted bottom-line growth.