Cochin Shipyard Ltd’s shares jumped over 5% in early trade on August 9, making it one of the top gainers on the BSE 500. The stock saw a significant rise following the company’s impressive financial performance in the first quarter of FY25.
Key Financial Highlights
- Net Profit Growth: The company’s net profit surged by 77% year-on-year (YoY) to Rs 174.2 crore in Q1 FY25, up from Rs 98.6 crore in the same quarter of the previous year. However, the net profit declined by 33% compared to Rs 258.8 crore in the March quarter.
- Revenue Increase: Cochin Shipyard’s revenue from operations saw a substantial increase of 62.1% YoY, reaching Rs 771.47 crore in Q1 FY25, compared to Rs 475.86 crore in the year-ago period. The revenue, however, was lower than the previous quarter’s Rs 1,286 crore.
- Margin Expansion: The company reported a significant improvement in margins, with a 650 basis points (bps) increase, reflecting better operational efficiency and cost management.
- Material Costs: The cost of materials consumed almost doubled to Rs 316.6 crore in Q1 FY25 from Rs 166.4 crore in the same period last year. This was, however, a decrease from Rs 626.5 crore in the March quarter.
Market Reaction
The strong quarterly performance has boosted investor confidence, leading to a 4.60% rise in Cochin Shipyard’s shares, which were trading at ₹2,418.30 as of 9:26 AM. The stock had previously recorded a steep decline on August 5 amid concerns over a potential recession in the US, but the recent results have helped to recover some of those losses.
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Cochin Shipyard