State-owned Cochin Shipyard Ltd (CSL) posted modest gains in its Q2 FY25 financial results but fell short of investor expectations, leading to a 4.59% drop in its share price as of 9:19 am, trading at ₹1,453.95 on the NSE.
Financial Highlights
- Net Profit: CSL reported a 4% year-on-year (YoY) increase in net profit, reaching ₹189 crore for the quarter ended September 30, 2024, up from ₹182 crore in Q2 FY24.
- Revenue: The company’s revenue from operations grew 13% YoY to ₹1,143.2 crore compared to ₹1,011.7 crore in the same period last year.
- EBITDA: At the operating level, EBITDA rose 3.2% to ₹197.3 crore in Q2 FY25 from ₹191.2 crore in Q2 FY24.
- EBITDA Margin: The EBITDA margin declined to 17.3%, down from 18.9% in the previous fiscal’s corresponding period, indicating some margin pressure.
Additional Updates
- Interim Dividend: CSL declared an interim dividend of ₹4 per equity share for FY25, with a record date set for November 20, 2024. The dividend will be distributed to eligible shareholders by December 6, 2024.
- Fundraising: The company also approved plans to raise up to $50 million through the issuance of US dollar-denominated non-convertible senior unsecured fixed-rate notes, to be issued in one or multiple tranches.
Cochin Shipyard’s slight profit and revenue growth were overshadowed by its weaker-than-expected EBITDA margin, prompting a decline in stock performance.
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Cochin Shipyard