Cochin Shipyard (COCHINSHIP) Q4 10/11 earnings summary

Executive summary

• FY2010-11 turnover was ₹1,461.72 crore vs ₹1,416.92 crore; PAT was ₹227.53 crore vs ₹223.04 crore, sustaining five consecutive years of strong performance.

• Excluding shipbuilding subsidy, profit increased 83% YoY; ₹17 crore of subsidy was recognized in FY2010-11, compared with ₹116 crore accrued in FY2009-10.

• Diversified shipbuilding, shiprepair, offshore and training activities supported performance through the withdrawal of shipbuilding subsidies and the global downturn.

Financial highlights

• Total income was ₹1,602.80 crore vs ₹1,494.91 crore; PBT was ₹345.90 crore vs ₹331.25 crore.

• EBDIT was ₹390.18 crore vs ₹364.68 crore; depreciation and write-offs were ₹17.61 crore vs ₹15.24 crore.

• Net worth rose to ₹965 crore from ₹680 crore; reserves and surplus increased to ₹775.38 crore from ₹490.54 crore.

• Shipbuilding income was ₹1,319.97 crore vs ₹1,180.54 crore; shiprepair turnover was ₹141.75 crore vs ₹236.36 crore.

Outlook and guidance

• Year-end order book stood at 35 vessels: 21 defence orders, including 20 for the Coast Guard and Navy, and 14 commercial orders for international owners.

• Future plans include a ₹50 crore Quay 3 extension, a ship-lift system, additional shiprepair facilities near Vizhinjam and a long-term vision and business plan.

• Ministry of Shipping’s 2010–2020 agenda targets 5% global shipbuilding share and 10% global shiprepair share by 2020; policy measures under consideration include subsidy reintroduction and infrastructure status.