Cochin Shipyard January-March Profit Up Modestly Despite Strong Revenue Growth

Cochin Shipyard Ltd. reported a modest rise in net profit for the March quarter despite strong growth in revenue, as total expenses outpaced income and tax outgo rose in double digits. This marks the eighth straight quarter of year-on-year growth in both revenue and profit, excluding a brief dip in the December quarter.

Net profit for the shipbuilding and repair company rose just over 7% on year to ₹2.85 billion, though it jumped more than 54% on quarter. Revenue for January–March climbed nearly 35% on year to ₹16.51 billion, also up over 54% sequentially.

However, total expenses surged by more than 49% on year to ₹14.30 billion in the quarter. Sub-contract and other direct costs more than doubled to ₹3.45 billion, while other expenses grew 2.6 times to ₹1.7 billion. The cost of materials consumed the largest cost head; rose over 10% to ₹6.5 billion, and employee benefit expenses increased almost 6% to ₹1.1 billion.

The company’s tax expense rose over 13% on year to ₹916 million. Operating margin for the quarter fell 600 basis points to 23%, while net profit margin narrowed to 17% from 22% a year ago.

Revenue from the shipbuilding segment stood at ₹8.15 billion in the quarter, down nearly 12% on year. In contrast, ship repair revenue more than doubled to ₹8.36 billion from ₹3 billion a year earlier.

For 2024-25, Cochin Shipyard posted a marginal 4% rise in net profit to ₹8.43 billion. Annual revenue jumped more than 24% to ₹45.29 billion, though operating margin for the year narrowed 500 basis points to 26%.

The board has recommended a final dividend of ₹2.25 per share for the year.