Cochin Shipyard (COCHINSHIP) Q4 15/16 earnings summary

Executive summary

• FY16 turnover reached ₹1,995.89 crore, with PBT of ₹424.08 crore and PAT of ₹275.03 crore, despite a severe global shipbuilding downturn.

• Ship repair delivered a record ₹367.49 crore turnover; shipbuilding income was ₹1,623.55 crore.

• Growth plans centered on a ₹970 crore International Ship Repair Facility, a ₹1,799 crore new dry dock and an IPO intended to help fund expansion.

Financial highlights

• Turnover rose to ₹1,995.89 crore from ₹1,859.51 crore YoY; total income was ₹2,109.77 crore versus ₹1,952.97 crore.

• PBT increased to ₹424.08 crore from ₹367.56 crore; PAT rose to ₹275.03 crore from ₹235.07 crore.

• Revenue from operations was ₹1,995.89 crore; other income was ₹113.88 crore, including ₹99.13 crore interest on bank deposits.

• Recommended dividend was ₹7.65 per share; total dividend and dividend tax outgo was estimated at ₹104.29 crore.

Outlook and guidance

• Indigenous Aircraft Carrier outfitting was progressing, with equipment trials expected shortly; targeted delivery to the Navy remained Dec 2018.

• International Ship Repair Facility was scheduled for completion in Aug 2019; the new dry dock was expected to be commissioned by end-2018.

• Three of GAIL’s nine LNG carriers were intended for Indian construction; offers were submitted through two consortiums, with the tender outcome pending.

• Management anticipated repair demand from port trade, coastal and inland waterways, and expansion of Navy and Coast Guard fleets.