Shares of Cochin Shipyard plunged over 4% to intra-day low of Rs 1640 on NSE after the defense sector firm reported its Q2 earnings, reflecting marginal growth in key financial metrics.
Strong Q2 Profit and Revenue Growth
Cochin Shipyard posted a 4% increase in consolidated net profit, which rose to Rs 189 crore for the July-September quarter, compared to Rs 182 crore in the same period last year.
The company’s revenue also showed a strong performance, climbing 13% to Rs 1,143.2 crore, up from Rs 1,011.7 crore in the corresponding quarter of FY24.
EBITDA Performance
Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 3.2% to Rs 197.3 crore in Q2, up from Rs 191.2 crore in the same quarter last year. However, EBITDA margin contracted to 17.3% from 18.9% in the corresponding period last year.
Interim Dividend Announcement
Cochin Shipyard declared an interim dividend of Rs 4 per equity share (80% of the face value of Rs 5 per share) for the financial year 2024-25.
The company has set the Record Date for the interim dividend as Wednesday, November 20, 2024, and the dividend will be paid to eligible shareholders on or before December 6, 2024.
Fundraising Plan
The board of Cochin Shipyard also approved a plan to raise up to $50 million through the issuance of US dollar-denominated non-convertible senior unsecured fixed-rate notes. The funds may be raised in one or more tranches, subject to applicable laws and eligibility of investors.
Stock Performance in Last One Year
Cochin Shipyard shares have shown mixed performance over various time periods. In the past month, the stock has posted a decline of over 7%. However, the last six months have seen a notable increase of 17.69%, signaling strong upward momentum.
Year-to-date, shares have surged by 125%, reflecting the stock’s positive trajectory in the current fiscal year. Over the last twelve months, Cochin Shipyard has delivered an impressive return of more than 190%, highlighting its sustained growth and appeal to investors.
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