Cochin Shipyard profit rises by 11% in fourth quarter, shares up more than 6%
The profit margin of Cochin Shipyard dropped to 16 per cent in Q4 compared to the 20 per cent reported last year.
The profit margin of Cochin Shipyard dropped to 16 per cent in Q4 compared to the 20 per cent reported last year.
The profit margin of Cochin Shipyard dropped to 16 per cent in Q4 compared to the 20 per cent reported last year.
State-owned shipbuilder Cochin Shipyard on Thursday reported an 11 per cent increase in its quarterly profit to ₹287 crore, compared to ₹258 crore in the same period last year.
The company's shares rose by 6.6 per cent following the results, climbing to ₹1,812 at the end of the trading day after dropping more than 1.5 per cent in the afternoon. The company's board declared a dividend of 2.25 per share for the financial year 2024-25.
For the financial year 2025, the total profit rose to ₹827 crore from the ₹783 crore reported in 2024. The company said its diluted earnings per share also rose to ₹10.92 in the quarter.
The company's revenue from operations increased to ₹1,757 crore in the quarter, compared to the ₹1,286 crore recorded in the same period last year. However, this was accompanied by an increase in other expenses, especially as the company said that the provision for anticipated losses and expenditure was ₹1,190 crore in the quarter, representing an increase of 87 per cent from Q4 2024.
This may have caused the profit margin of the Kochi-based shipbuilder to drop to 16 per cent in Q4 compared to the 20 per cent reported last year. The operating margin also decreased to 23 per cent form 27 per cent in the same quarter the previous year.
The company also said that its shipbuilding revenue decreased in the quarter to ₹921 crore from the ₹985 crore reported last year. However, the revenue from ship repair activities saw a huge jump, increasing to ₹836 crore in Q4 from ₹300 crore reported in the same period last year.