Cochin Shipyards Q2 PAT down 48% at Rs107cr as lockdown takes its toll

Cochin Shipyards reported 32.43% lower Sep-20 quarter top line sales revenues at Rs657.40cr.

Nov 12, 2020 02:11 IST India Infoline News Service

Cochin Shipyards reported 32.43% lower Sep-20 quarter top line sales revenues at Rs657.40cr. The shipbuilding and ship repair activity, the principal activity of Cochin Shipyards, had a temporary disruption but the lag effect continued well into the Sep-20 quarter. The company continued to work on a reduced time scale for a good part of the quarter and that hit the top line badly.


For the Sep-20 quarter, the operating profits were down 42.49% at Rs111.52cr. This fall can largely be attributed to the lower levels of revenues unable to absorb the fixed costs efficiently. This resulted in the operating margin or OPM contracting from 19.93% in the Sep-19 quarter to 16.96% in Sep-20 quarter.


Profit after tax (PAT) for the Sep-20 quarter was down by 48.06% at Rs107.16cr. The company got lower support from other income during the quarter. PAT margins also contracted from 21.21% to 16.30% in Q2; largely on the back of operating reasons.


Financial highlights for Sep-20 compared yoy and sequentially


Cochin Shipyards
Rs in Crore Sep-20 Sep-19 YOY Jun-20 QOQ
Revenues 657.40 972.87 -32.43% 332.48 97.73%
Operating Profit 111.52 193.92 -42.49% 4.35 2463.68%
Profit After Tax (PAT) 107.16 206.33 -48.06% 41.43 158.65%
Diluted EPS (Rs) ₹ 8.15 ₹ 15.70 ₹ 3.15
Operating Margins 16.96% 19.93% 1.31%
PAT Margins 16.30% 21.21% 12.46%
 


Key takeaways from the Sep-20 quarter results

  • Due to the lower profit performance, the company saw it debt service ratios deteriorate despite the debt/equity ratio remaining at 0.03. Debt service coverage ratio halved to 20.34 times while the interest service coverage ratio also halved to just about 42 times.

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