Cochin Shipyard (COCHINSHIP) Q4 11/12 earnings summary

Executive summary

• FY 2011-12 turnover was ₹1,404.85 crore and PAT ₹172.33 crore, both below FY 2010-11; lower Indigenous Aircraft Carrier income and absent shipbuilding subsidy were cited as key causes.

• Five offshore support ships were delivered; the order book included defence, offshore and commercial vessels, including the Indigenous Aircraft Carrier.

Financial highlights

• Gross income was ₹1,481.55 crore vs ₹1,589.17 crore YoY; PBT was ₹252.97 crore vs ₹344.23 crore and net profit ₹172.33 crore vs ₹227.53 crore.

• Operating revenue was ₹1,404.85 crore vs ₹1,461.72 crore; other income fell to ₹76.69 crore from ₹127.46 crore, including excess provisions written back of ₹13.03 crore vs ₹84.61 crore.

• EBDIT was ₹284.16 crore vs ₹390.27 crore; depreciation and write-offs were ₹18.07 crore vs ₹17.06 crore.

• Finance costs declined to ₹13.12 crore from ₹28.98 crore; tax expense was ₹80.64 crore vs ₹116.70 crore.

• Operating cash flow was ₹263.69 crore vs an outflow of ₹23.85 crore; cash and bank balances ended at ₹908.90 crore vs ₹690.25 crore.

Outlook and guidance

• FY 2012-13 capital budget included ₹194 crore for renewals and replacement; ₹2.45 crore was earmarked for R&D.

• Growth plans included a new dry dock for rig and semi-submersible repairs, a shiprepair facility at Cochin Port Trust and offshore structure fabrication; feasibility studies had begun.

• Phase II of the Indigenous Aircraft Carrier contract was expected to be concluded; discussions for a multi-streamer seismic survey vessel with ONGC were advanced, and a buoy tender order had been secured for FY 2012-13.

• Expansion priorities included quay extensions, an offshore fabrication and load-out facility, expanded repair-dock capacity and potential shiprepair facilities at Vizhinjam/Poovar.