Cochin Shipyard jumps 9% on large order win from European client

The order, which falls in the ₹500-1,000 crore range, is for the design and construction of a hybrid service operation vessel (Hybrid SOV) with an option for two more such vessels, it said.

The firm said the vessel is equipped with hybrid battery systems to improve the energy efficiency and reduce the carbon foot-prints. “The vessel is designed and built for the service, maintenance and operational needs of the offshore wind farm industry in the European market where sustainable energy solutions are in high demand. The project is expected to be completed by the end of 2026,” it stated in a release.

The company also clarified that none of the promoters, promoter groups or group companies have any interest in the entity that awarded the order.

Last month, the company indicated it signed the master shipyard repair agreement (MSRA) with the United States Navy which will facilitate the repair of US Naval vessels under the Military Sealift Command in Cochin Shipyard. The MSRA is a non-financial agreement and is effective from April 05, 2024, it said.

During the third quarter of fiscal year 2024, the company reported a 62% rise in its turnover at ₹1,021.45 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) including other income rose 108% to ₹367.73 crore during the quarter while the EBITDA margin improved to 36% compared to 28% in the same period of the previous fiscal. Net profit for the quarter rose 109% to ₹248.02 crore.

For the nine months ending in December 2023, the company reported a 91% rise in its net profit at ₹548.43 crore.

Shares of the company have gained nearly 90% since the beginning of the year. The stock has risen over 380% in the last one year.