Cochin Shipyard shares slip nearly 1%, after signing MoU with HD Korea Shipbuilding

Shares of Cochin Shipyard shares slip nearly 1%, following the company’s signing of a Memorandum of Understanding (MoU) with HD Korea Shipbuilding & Offshore Engineering (KSOE) on Friday, July 4. The agreement sets the stage for long-term collaboration across critical segments of shipbuilding and maritime development.

The MoU outlines joint exploration of new building opportunities both in India and overseas. It also focuses on sharing technical expertise to meet global shipbuilding standards, enhancing productivity and capacity utilisation, and pursuing potential collaborations in shipbuilding-related ventures. Workforce upskilling is also a key element of the agreement.

KSOE, a global shipbuilding powerhouse, brings deep expertise in designing and constructing commercial vessels, naval platforms, and offshore infrastructure. It oversees operations at some of the world’s largest shipyards, including Hyundai Heavy Industries, Hyundai Mipo Dockyard, and Hyundai Samho Heavy Industries.

Cochin Shipyard continues to strengthen its global footprint with a strong legacy of landmark projects. It built India’s first indigenous aircraft carrier and has consistently served major clients such as the Indian Navy, Indian Coast Guard, and Shipping Corporation of India. The company has also delivered 47 high-end vessels to international clients across various geographies.

This strategic partnership aligns with India’s long-term maritime goals under the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, both aimed at positioning India as a global maritime hub. The state-run defence firm has also recently partnered with Drydocks World to enhance its ship repair and offshore fabrication capabilities. The collaboration is expected to build a world-class ecosystem for ship maintenance, catering to both domestic and international fleets.

Cochin Shipyard operates across shipbuilding and ship repair, with a presence in both domestic and global markets. As of 31 March 2025, the Government of India held 67.91% of the company’s voting rights.

In Q4 FY25, the company posted a consolidated net profit of ₹287.18 crore, marking a 10.9% YoY growth. Revenue from operations rose 36.7% to ₹1,757.65 crore. However, EBITDA declined 7.6% to ₹266 crore, with margins narrowing to 15.1% from 22.4%. The board recommended a final dividend of ₹2.25 per share, in addition to the ₹7.5 per share interim dividend already declared. The final dividend will be paid within 30 days of AGM approval.

As of 10:54 AM, shares of Cochin Shipyard were trading 0.63% lower at ₹2,044.40 apiece on the NSE. On Friday, the stock had ended at ₹2,057.25, up by ₹41.85 or 2.08% on the BSE, post the MoU announcement.