Cochin Shipyard (COCHINSHIP) Q4 22/23 earnings summary

Executive summary

• FY23 revenue from operations fell to ₹2,330.46 crore from ₹3,190.00 crore; PBT was ₹448.51 crore and PAT ₹334.49 crore, reflecting a challenging year and results below initial expectations.

• Strong order visibility and execution of orders in hand supported expectations of a robust recovery in FY24.

• Consolidated revenue was ₹2,364.55 crore and PAT ₹304.71 crore; consolidated EPS was ₹23.16.

Financial highlights

• Standalone total income was ₹2,536.95 crore versus ₹3,456.42 crore; EBITDA was ₹533.40 crore, PBT ₹448.51 crore and PAT ₹334.49 crore.

• Standalone PAT margin was 14% and EPS ₹25.43, versus ₹44.59 in FY22.

• Operating cash flow rose to ₹2,051.14 crore from ₹1,415.15 crore; cash and cash equivalents closed at ₹2,008.83 crore, including earmarked funds.

• Consolidated PBT was ₹418.44 crore and PAT ₹304.71 crore, versus ₹765.94 crore and ₹563.96 crore in FY22, respectively.

Outlook and guidance

• Management anticipated a robust FY24 recovery, citing strong order visibility and execution of orders in hand.

• Of ₹16,936.70 crore in standalone unsatisfied or partly unsatisfied performance obligations, 19.63% was expected to be recognized as revenue in FY24; the balance thereafter.

• The new dry dock was targeted for construction completion by Dec 2023 and full commissioning by mid-2024; ISRF ship-lift commissioning was targeted for Dec 2023 and full completion for June 2024.

• Green shipping, defence orders, coastal and inland waterways, ship-repair clusters, and European demand for advanced vessels were identified as growth opportunities.