Cochin Shipyard (COCHINSHIP) Q4 16/17 earnings summary

Executive summary

• FY17 turnover reached a record ₹2,058.87 crore, with PBT of ₹494.00 crore and net profit of ₹322.15 crore, despite a global shipbuilding downturn.

• Record ship-repair income and early completion of major defence vessel work supported performance; shipbuilding income was lower YoY.

• IPO preparation and two major capacity projects advanced, targeting larger-vessel construction and expanded ship-repair capability.

Financial highlights

• Revenue from operations ₹2,058.87 crore vs ₹1,993.45 crore in FY16; total income ₹2,222.45 crore vs ₹2,107.37 crore.

• PBT ₹494.00 crore vs ₹419.65 crore; audited Ind AS net profit ₹322.15 crore vs ₹272.69 crore in FY16.

• Finance costs declined to ₹10.54 crore from ₹12.01 crore; depreciation and amortisation rose to ₹38.51 crore from ₹37.19 crore.

• Operating cash flow was ₹212.28 crore vs ₹31.96 crore; cash and cash equivalents ended FY17 at ₹675.98 crore.

Outlook and guidance

• ₹1,799 crore earmarked for the new dry dock and ₹970 crore for the International Ship Repair Facility (ISRF); IPO fresh-issue proceeds intended to fund growth plans.

• Dry-dock construction was expected to commence by Dec 2017; completion would enable construction of larger aircraft carriers and LNG vessels, plus jack-up and semi-submersible rig repairs.

• ISRF construction was scheduled to commence by Sep 2017, subject to approvals and project execution; the facility is intended to establish Kochi as a major repair hub.

• Inland waterways, coastal shipping and small LNG vessels were identified as potential growth areas; a Hooghly Dock JV was being finalized, with proposed investment of ~₹200 crore.