Cochin Shipyard Q4 Results are out, and the numbers look strong despite margin pressure. The state-run defence PSU reported an 11% year-on-year jump in net profit at ₹287.18 crore, supported by a robust 37% rise in revenue to ₹1,757.65 crore. However, EBITDA fell 7.6%, and operating margins narrowed to 15.10%. Alongside the earnings, the board announced a ₹2.25 dividend per share. Shares of the company reacted positively, surging over 5% today and gaining nearly 26% in the past five days.
Strong Revenue Growth Despite Margin Pressure
Cochin Shipyard delivered a solid topline performance in the March quarter, with revenue soaring 36.7% YoY. This growth was largely driven by its shipbuilding and ship repair businesses. The EBITDA, however, slipped to ₹266 crore, marking a 7.6% decline from last year. Margins compressed by a significant 730 basis points to 15.10%, compared to 22.40% in the same period last year. This decline is attributed to higher input costs and project execution timelines. Despite the margin squeeze, the bottom line remained strong, showcasing operational resilience.
Dividend Declared: ₹2.25 per Share for FY25
The company has recommended a final dividend of ₹2.25 per equity share for the financial year 2024-25. This payout, subject to shareholder approval at the upcoming AGM, reflects Cochin Shipyard’s commitment to shareholder returns. If approved, the dividend will be credited within 30 days post-AGM. For retail investors looking at long-term PSU plays, this adds an attractive yield to the overall return potential.
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Stock Performance: Five-Day Rally Boosted by Results
Cochin Shipyard shares have been on a winning streak, climbing 26% over the past week. Following the Q4 results, the stock jumped 5.23% intraday to ₹1,788.30. The market is responding to the company’s strong revenue growth and steady profit performance. The current bullish momentum suggests investor confidence is returning, especially in defence-linked PSU counters.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
