Cochin Shipyard Signs Contract With ONGC Worth Rs 200 Crore

Cochin Shipyard Ltd. on Wednesday signed a contract with Oil & Natural Gas Corp. for dry dock or major lay-up repairs or one of its jack-up rigs.

The project is estimated to be at Rs 200 crore, according to an exchange filing. The project is expected to be completed in around 12 months. The company also said that none of the promoter or promoter group have any interest in the entity that awarded the order.

Cochin Shipyard, last week, gave a final dividend of Rs 2.25 per share.

Cochin Shipyard in July said it has secured a new order for two 70-tonne Bollard Pull Tugs from Polestar Maritime Ltd. This comes as a follow-up to an earlier order for three similar tugs placed with Udupi Cochin Shipyard Ltd., a wholly owned subsidiary of CSL.

Cochin Shipyard's bottom line surged 8% during the first quarter of current fiscal. The company's net profit rose to Rs 187.83 crore for the quarter ended June 30 from Rs 174.24 crore for the same period last year.

Revenue rose by 38.5% year-on-year for the three months ended June, reaching Rs 1,068.59 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 36% year-on-year to Rs 241.36 crore. The Ebitda margin contracted to 22.6%.

The business update was shared aftermarket hours. The stock settled 3.78% higher at Rs 1,890.50 apiece on the NSE, compared to a 0.18% decline in the benchmark Nifty 50.

Cochin Shipyard shares have risen 20.64% in the last 12 months and 7.26% year-to-date.

Out of three analysts tracking the company, one maintains a 'buy' rating and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 1,504.67 implies an upside of 8.1%.