Cochin Shipyard (COCHINSHIP) Q4 18/19 earnings summary

Executive summary

• FY19 turnover reached a record ₹2,962.16 crore; PAT was ₹481.18 crore, also a record, supported by higher shipbuilding and ship-repair activity.

• Focus remained on defence and domestic orders, with expansion into coastal shipping, inland waterways, fishing vessels and ship repair across multiple ports.

Financial highlights

• Revenue from operations was ₹2,962.16 crore vs ₹2,355.12 crore in FY18; total income was ₹3,190.27 crore vs ₹2,544.28 crore.

• PBT rose to ₹751.38 crore from ₹604.86 crore; PAT increased to ₹481.18 crore from ₹396.75 crore.

• EPS was ₹35.72 vs ₹31.03; reported standalone total expenses were ₹2,438.90 crore vs ₹1,939.42 crore.

• Operating cash flow was an outflow of ₹448.33 crore vs an inflow of ₹632.07 crore; investing cash flow was an inflow of ₹1,043.71 crore, including movements in deposits and mutual funds.

Outlook and guidance

• Shipbuilding order book at March 31, 2019 was estimated at ₹8,286 crore, excluding the IAC balance on cost-plus basis and Phase III.

• Management expected 50.64% of ₹1,005.28 crore in unsatisfied or partially satisfied performance obligations to be recognized as revenue in FY20; the remainder thereafter.

• ISRF completion was targeted for FY21; the new dry-dock for FY22; HCSL's operational phase was expected to be completed within 18 months of commencement and operational by 2020.

• IAC Phase III contract negotiations were advanced, with conclusion expected by mid-FY20; basin trials were scheduled for February 2020.