Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Cochin Shipyard - Q2FY21 - First Cut - Strong OCF; PAT in line - YES Securities

Posted On: 2020-11-16 04:00:02

Q2FY21 Standalone result highlights

- Operating cash flow for H1FY21 was at Rs14bn vs negative Rs448mn in H1FY20 primarily led by i) Improvement in other current assets by Rs2.3bn & ii) Increase in other current liabilities by Rs11bn. Cash & cash equivalent was at Rs34bn as on September 2020 vs Rs22bn as on March 2020.

- Revenues from operations de-grew 32% yoy to Rs6.6bn (-14% vs our est.) as shipbuilding/ ship repairing revenues were down 29%/49% yoy respectively owing to Covid related disruptions.

- EBITDA margins came in at 19.1% (+298bps vs our est.), 206bps yoy on the account of negative operating leverage & lower ship-repairing revenues. EBITDA came in line with our estimates.

- Shipbuilding EBIT margin stood at 21.7%, down 50bps yoy while ship-repairing EBIT margin was at 27.4%, down 370bps yoy.

- Other income came in at Rs453mn, down 43% yoy.

- PAT reported decline of 48% yoy (in line with our est.).

- Inventory, Debtors & Creditors was at 52/43/68 days respectively.

- During Q2FY21 in order to meet the challenges facing the Company, the Company extended hours of operations by working in two shifts. This has impacted depreciation to the tune of Rs13.5mn during the quarter.

- In compliance with the NCLT Order, Cochin Shipyard Limited (CSL) paid the bid amount for takeover of TSL on September 15, 2020 with effect from which TSL has become a wholly owned subsidiary of CSL.

- CSL is expanding geographically and has commenced Ship Repair Units at Mumbai, Kolkata & Port Blair in addition to its Kochi facilities. CSL is also setting up fully owned subsidiary shipyards at Kolkata (named HCSL) and at Malpe, Karnataka (named TEBMA Shipyards Limited) to cater to the construction of small & medium vessels as well as inland water vessels.

Our view - We have a 'Buy' rating with TP of Rs429 & would be finetuning our estimates post interaction with mgmt. The stock is currently trading attractively at P/E of 8.3x/7.8x FY21E/FY22E earnings respectively. Earning conference call details awaited. CSL is targeting to increase its ship repairing (SR) market share through new initiatives like repairs of oil rigs and merchant vessels at Mumbai Port, A&N admin, Kolkata port and Hooghly-CSL JV. It expects SR revenues of Rs10bn+ with margins of 25% beyond FY23. It has shipbuilding revenue growth visibility till FY23 due to planned execution of Rs65bn from IAC contract. We think new large ticket order inflow would be critical for its long-term growth.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Economy - MPC holds rates; policy largely non-event - ICICI Securities

Monetary Policy - Mr. Rajiv Sabharwal, MD and CEO, Tata Capital

RBI maintains status quo, realtors rely on increased demand

Cadila receives DCGI approval - Angel Broking

Maintain BUY on UltraTech Cement - Speeding on organic expansions! - HDFC Securities

HCL Technologies - Quant Pick - ICICI Direct

Teamlease Services - Gladiator Stocks - ICICI Direct

Mindtree Ltd - Analyst Meet Update - ICICI Direct

Bajaj Finserv - Company Update - Dec 2020 - ICICI Direct

RBI Monetary Policy - Dec 2020 - Views of Industry Experts

RBI Monetary Policy - Dec 2020 - Views of Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank

Views on RBI Policy: Mr. Dhiraj Relli, MD &CEO, HDFC Securities

RBI monetary Policy - Dec 2020 - Angel Broking

View on RBI Monetary Policy - Dec 2020 - Mr. Amar Ambani, YES SECURITIES

Accommodative stance necessary to revive growth: Dr. Niranjan Hiranandani - President at ASSOCHAM & Chairman Hiranandani Group

Views on RBI Monetary Policy - Dec 2020 - Ms. Bekxy Kuriakose, Head - Fixed Income, Principal Asset Management

RBI stays put to aid in maintaining real estate sector recovery - Ramesh Nair, CEO and Country head, JLL India

Views on Dec, 2020 RBI Monetary Policy from Industry Experts

MPC - Dec 4, 2020 - Acuité Ratings & Research

Realty sector's hopes are high from RBI's MPC

Citibank issued a report on RBL Bank: Recommends 'BUY' with target price Rs. 275

Russia to adopt vaccination for Covid-19 - Angel Broking

68% of borrowers are unaware of their CIBIL score, reveals Home Credit Survey

Auto Sector - Monthly Volume Round-up - Nov 20 - Reliance Securities

What do brokerages say on Burger King India Limited's IPO?

The Phoenix Mills - Potential fund infusion may usher in growth - ICICI Securities

Godrej Agrovet - Beneficiary of 60% increase in palm oil prices - ICICI Securities

Automobiles (wholesale) - Wholesale dispatches rise amidst modest retail trends - ICICI Securities

Oil & Gas - Sector Update - Dec 2020 - ICICI Direct

Phoenix Mills (Buy): Asset monetisation at favourable terms... - ICICI Direct

Aditya Makharia's views on November Auto Sales Number for November 2020 - HDFC Securities

Burger King India - IPO Review - ICICI Direct

Quant Pick - LIC Housing Finance - ICICI Direct

Tech Mahindra - Analyst Meet Update - ICICI Direct

Gladiator Stocks - Crompton Greaves Consumer Electricals - ICICI Direct

Derivatives Monthly Outlook - Nifty support at 12800 for ongoing momentum...

Quant Pick - Sun Pharmaceuticals - ICICI Direct

Monetary Policy - Expectation from YES Securities

Sector Update on Asset Management Companies - Subdued but improvement expected - HDFC Securities

Pre Monetary Policy View - Dec, 2020 - Lakshmi Iyer, President and CIO (Debt) & Head Products, Kotak Mutual Fund

Maintain REDUCE on Siemens - Smart recovery priced in - HDFC Securities

Banking Sector Credit Trends - Growth continues to moderate - HDFC Securities

Q2 FY21 GDP: Light at the end of the tunnel - YES Securities

Siemens - Q4 FY20 Result Update - YES Securities

Super action in Home Loans - SBIN, ICICIBC, AXSB, HDFC and LICHF gaining share - YES Securities

Polymer price tracker - Dec 1, 2020 - PVC prices continue to tread higher - ICICI Securities

Bajaj Finance - Company Update - Dec 2020 - ICICI Direct

Siemens Ltd - Healthy revival in orders and margins - ICICI Securities

Covid Recovery Pulse - Nov 30, 2020 - Festive positivity continues in auto retails, e-way bill generation improves...

Derivatives Weekly View (November 27): Momentum expected to continue in broader markets with Nifty support at 12800...

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019