Cochin Shipyard Q2 Results Review - Execution Expected To Pick Up: ICICI Direct
Execution is expected to improve significantly over FY24-25E, which would drive revenues.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
Cochin Shipyard Ltd.'s revenue for the quarter came in at Rs 683.2 crore (down 1.9% YoY); lower than our estimate of Rs 800.6 crore. This was mainly due to slower than expected execution in ship-building contracts.
Revenue from ship-building segment (~77% share) declined 5% YoY to Rs 527.6 crore while revenue from ship-repair segment (~23% share) increased 10.3% YoY to Rs 155.6 crore.
Sequentially, total revenue increased 55% led by strong growth in both segments (50.1% QoQ revenue growth in ship-building and 74.0% QoQ revenue growth in ship-repair).
Cochin Shipyard's gross margins contracted 305 bps YoY on increase in raw material cost. Sequentially, gross margin improved 379 bps led by strong revenue growth (despite a sharp increase in raw material cost).
Ebitda margins came in at 19.8%; contracting 382 bps YoY on muted sales and increase in costs (mainly other cost). Sequentially, Ebitda margins improved sharply by 1265 bps on operating leverage benefits.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.