Cochin Shipyard Limited — Q4 FY25
Cochin Shipyard reported an all-time high consolidated revenue of INR 3,830 crore for FY25, up 62% YoY, driven by strong execution in shipbuilding (72% of revenue) and ship repa...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
63%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Confirms EBITDA margin guidance of 18%-19% on consolidated basis.
Asked by Deepak Krishnan, Kotak Institutional Equities
Management directly confirmed the guidance range.
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Question
I just wanted to understand, you said EBITDA margin previously guided in the range of 18%-19% on a consolidated basis. Is that understanding correct?
Madhu Nair, Chairman and Managing Director
That's right.
Answered
High priority
Asks if high EBITDA margin is due to ship repair and IAC contracts.
Asked by Deepak Krishnan, Kotak Institutional Equities
Management confirmed the factors and stated it's not one-off.
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Question
Factors that drove such high EBITDA margin this quarter, is it largely due to the 400-odd crore ship repair contract that we have that continues till Q1 FY 2025? The IAC one sitting in our book, are those two factors driving margins ahead in this particular quarter, or was there any one-off factor?
Madhu Nair, Chairman and Managing Director
It's not one-off. A large thing, as you rightly said, we had good projects and project execution both on the ship repair side aided by the aircraft carrier in the dock, and the IAC revenue is also coming in. There has been good traction both on the execution side, ship repair, and ship repair. It's not largely one-off.
Partial answer
High priority
Asks about timeline and volume guarantees from MSRA with US Navy.
Asked by Deepak Krishnan, Kotak Institutional Equities
Management acknowledged the agreement but declined to provide timelines or volume guarantees.
no timeline givenno guaranteed volumes
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Question
The agreement that we have, the MSRA, by when do we kind of see any orders coming through, or is it just like a pre-qualification, and how do things really progress from the signing of the MOU?
Madhu Nair, Chairman and Managing Director
Pre-qualification, it is a formal agreement, and we are expecting inquiries, and offers will be submitted. It will have to be taken through, but the company will push for earlier starts on this. I'm not able to give timelines on this, but it's a full agreement, and we'll have to get into execution earlier.
Partial answer
Medium priority
Asks about future pipeline for shipbuilding and ship repair orders.
Asked by Umesh Rao, Numero
Management gave general commentary but no specific project names or timelines.
no specific projects nameddeferred to future
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Question
My first question is pertaining to future prospect pipeline on the ordering side, both on shipbuilding and ship repairing. Could you please highlight key projects which you are expecting in the next couple of years?
Madhu Nair, Chairman and Managing Director; Rajesh Gopalakrishnan, Director Technical
Ship repair, as was mentioned briefly, typically ship repair, we do not maintain an order book because inquiries keep coming... On the shipbuilding side, you're talking about further order inflow. We'll have to wait a little bit to see on the defense side. On the international side... there is good traction we are seeing on similar vessels from Europe.
Declined
High priority
Asks if Cochin Shipyard qualified for next mission corporate order.
Asked by Umesh Rao, Numero
Management explicitly declined to answer, citing lack of formal communication.
refused to commentdeferred to Navy
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Question
There is a next mission corporate order which is in the pipeline... I just wanted to clarify whether Cochin Shipyard has qualified in that particular order or not.
Madhu Nair, Chairman and Managing Director
I wouldn't want to comment on that specific information because it's not a formal communication kind of a thing, so we would not want to comment on matters which would be the prerogative of the Indian Navy.
Evasive
Medium priority
Asks about revenue ramp-up and margins from new ship repair facility.
Asked by Umesh Rao, Numero
Management provided operational timeline but refused to quantify revenue or margin guidance.
no revenue figures givendeferred to future
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Question
How you are planning to kind of ramp up revenue from that particular facility, and maybe in a medium to longer term, maybe three to five years down the line, what kind of repairing top line you are seeing? Along with that, maybe what kind of margins you are kind of seeing more of sustainably to maintain on the repairing side?
Madhu Nair, Chairman and Managing Director
We expect this to be put into operation from August 2024 onwards. We are coming up shortly with a global tender for a global operating partner... Over the next few years, we expect significant revenues to come in, but I would not want to put figures onto this... We would not want to put money values into it at this stage.
Answered
High priority
Asks if 25%-30% EBIT margin is sustainable for ship repair.
Asked by Umesh Rao, Numero
Management provided specific margin guidance for ship repair (22%-23%) and blended (17%-19%).
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Question
Is it fair to say that 25%-30% is more of a sustainable EBIT margin range for ship repairing business?
Madhu Nair, Chairman and Managing Director; Jose V J, Director Finance
My Director Finance would like to guide you to 22%-23%... repairing, you cannot compare because this quarter performance or this year's performance cannot be taken as a guidance... Going forward, at a blended level, you can expect around 17%.
Answered
High priority
Asks about additional depreciation from new capacities.
Asked by Umesh Rao, Numero
Management provided a specific range for additional depreciation.
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Question
You have mentioned in your opening remarks that depreciation cost from 2025 onward will go up significantly. Is it fair to assume that new capacity will have a depreciation rate of closer to, say, 6% and maybe additional cost of about INR 500 million incrementally on a base of 24%?
Jose V J, Director Finance
No, both capacities put together is around INR 2,800 crore. So the additional depreciation will be around INR 140 crore, approximately. Not exact amount, around INR 125 crore to INR 150 crore.
Answered
Medium priority
Asks about inventory increase and advances from customers.
Asked by Umesh Rao, Numero
Management explained the reason for inventory increase and provided outlook.
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Question
If I look at inventory position for FY 2024, that has increased by about 40 days... Was there any particular reason behind this?
Jose V J, Director Finance
Yeah, because now both ASW and the NGMV, the new generation missile vessels, both the projects are coming to the production stage. A lot of stock or materials have started reaching CSL. The inventory has gone up this year, and it is likely to go up further also.
Partial answer
High priority
Asks if PAT margin of 12%-14% is correct given guidance and factors for growth.
Asked by viraj mithani, Jupiter Fine
Management confirmed revenue growth guidance but did not address PAT margin question.
did not confirm PAT margin
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Question
Regarding the guidance you gave of growth of 25% and EBIT of 19%-20% EBITDA margins. So the PAT should be in the range of 12%-14%. Is that correct to think? Number one. Number two, what are the factors giving you some confidence that the growth will be double-digit, maybe 20%-25% in revenue growth?
Madhu Nair, Chairman and Managing Director
On the growth guidance, 20%-25% on the overall turnover, that's based on because we are aware that shipbuilding and ship repair for the year, we talk based on contract in hand and our current execution status, and the confidence is based on that.
Declined
High priority
Asks about timing of IAC-2 and whether FY25/26 will be peak revenue without it.
Asked by Sagar Gandhi, Invesco Mutual Fund
Management explicitly declined to provide any timeline for IAC-2.
refused to share timeline
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Question
My question is related to ISC2 , so I'm not asking you whether it will come or not, but if it has to come, will it be 2026 or 2027?
Madhu Nair, Chairman and Managing Director
Sagar Gandhi, your guess should be as good as mine, and if at all I have better information, I will not be able to share it also here. That's all.
Answered
Medium priority
Asks about peak fixed asset turnover from new gross block of INR 2,800 crore.
Asked by Gagan Thareja, ASK Investments
Management provided a specific turnover ratio and confirmed the assumption.
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Question
This new CapEx of INR 2,800 crore, which will get added to the gross block, what could be the potential fixed asset turnover on that?
Jose V J, Director Finance; Madhu Nair, Chairman and Managing Director
It will be around two to start with... I think it's safe to assume that way.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Blended EBITDA margin guidance 17%-19% | 18% | 15% | Overstated vs filing |
| Revenue growth guidance 20%-25% | 22.5% | 62% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.