Cochin Shipyard (COCHINSHIP) Q4 13/14 earnings summary

Executive summary

• FY14 turnover was ₹1,637.45 crore vs ₹1,554.16 crore; PAT rose to ₹194.24 crore from ₹185.27 crore despite weak shipbuilding and shipping conditions.

• Seven vessels were delivered: five Fast Patrol Vessels to the Indian Coast Guard and two Platform Supply Vessels to international owners; the Indigenous Aircraft Carrier was launched in August 2013.

Financial highlights

• Revenue from operations was ₹1,637.45 crore; total revenue ₹1,712.78 crore, PBT ₹290.96 crore and PAT ₹194.24 crore, against ₹1,554.16 crore, ₹1,642.34 crore, ₹275.55 crore and ₹185.27 crore, respectively, in FY13.

• EBDIT was ₹337.52 crore vs ₹317.90 crore; finance costs ₹19.77 crore vs ₹23.13 crore; depreciation and amortisation ₹26.79 crore vs ₹19.21 crore.

• Provision for anticipated losses and expenditure increased to ₹60.96 crore from ₹2.74 crore; FY14 included provisions for doubtful debts, liquidated damages, employee benefits and contingencies.

• Proposed dividend was ₹1.50 per share; dividend and tax outgo was estimated at ₹19.88 crore.

Outlook and guidance

• Expansion priorities include rig and offshore-structure repairs, increased shiprepair and defence shipbuilding; plans include an International Shiprepair Facility and a larger dry dock for rigs and large naval or commercial vessels.

• Phase II of the International Shiprepair Facility was progressing, with environmental clearance expected in Q1 2015; the annual address expected clearance in Q1 2015 and reported preparatory work underway.

• A large dry dock was estimated at ₹1,200 crore and had in-principle Ministry of Shipping approval; a technical feasibility and viability study was underway.

• Proposed IPO funding comprised 2,22,62,500 shares of ₹10 each, subject to Ministry of Shipping consideration; expansion funding was planned through a mix of debt and equity.