Cochin Shipyard shares in focus after weak operating Q2 even as topline grows 12%

Résumé détaillé

At the end of the September quarter, Cochin Shipyard's borrowings have increased sharply by 62% from last year, while consolidated operating cash flow at the end of the first half of the year, stood at a negative ₹635 crore.

Shares of Cochin Shipyard Ltd. will be in focus on Wednesday, November 11, after the company reported a weak set of September quarter (Q2 FY27) results, with a sharp decline in profitability despite steady revenue growth.

On a standalone basis, Cochin Shipyard's revenue increased by 12.9% from last year to ₹1,074 crore. However, that was the only metric that saw an increase during the quarter.

The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined 31% from last year to ₹51 crore, while margins declined to 4.1% from 6.6% during the year-ago period.

Net profit for the period also halved to ₹53 crore from ₹108 crore during the same quarter last year.

The key concern was the weak performance of the shipbuilding segment. Revenue from the segment increased to ₹783 crore from ₹759 crore in the year-ago quarter. However, the profit before tax for the segment (PBIT) swung to a loss of ₹6 crore from a profit of ₹150 crore.

In contrast, the ship repair business delivered a stronger performance, with revenue rising to ₹466 crore from ₹360 crore and segment PBIT more than doubling to ₹143 crore from ₹67 crore.

Earlier, the company had guided for revenue growth of 12% with a potential to reach 15% on the upside, along with EBITDA margin of 14%. At the end of the first half of the year, revenue growth stood at 7%, while margins stood at 9%.

At the end of the quarter, the company's borrowings have increased sharply by 62% from last year, while consolidated operating cash flow at the end of the first half of the year, stood at a negative ₹635 crore.

Shares of Cochin Shipyard ended 4.3% higher on Monday at ₹1,290. The stock is down 30% from its 52-week high of ₹1,842.8.

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