Cochin Shipyard Q3 Shock: Profit Plunges 27%, Stock Sinks, Analysts Predict More Pain Ahead!

Cochin Shipyard reported a 27% year-on-year decline in net profit for Q3 FY25, falling to ₹177 crore, while revenue grew 9% to ₹1,148 crore. The stock dropped over 5% following the results, with analysts warning of a potential 40% downside due to weak shipbuilding performance and a lack of major defense contracts. Despite this, the company announced a second interim dividend of ₹3.50 per share, with February 12, 2025, set as the record date.

CONTENTS:

• Cochin Shipyard Q3 FY25 Results: Revenue Rises 8.6%, Net Profit Falls 27.6%
• Cochin Shipyard Q3 FY25: Net Profit Falls 27.6%, Revenue Rises 8.6%
• Cochin Shipyard Shares Drop Over 5% After Q3 Profit Decline; Interim Dividend Announced
• Analyst Predicts Cochin Shipyard Shares Could Decline Another 40% Post Q3 Results
• Cochin Shipyard Q3 Results: Net Profit Drops 27% YoY, ₹3.5 Per Share Dividend Announced

Cochin Shipyard Q3 Shock: Profit Plunges 27%, Stock Sinks, Analysts Predict More Pain Ahead!

Cochin Shipyard Q3 FY25 Results: Revenue Rises 8.6%, Net Profit Falls 27.6%

Cochin Shipyard Q3 Shock: Profit Plunges 27% Cochin Shipyard reported its consolidated financial results for the quarter ending December 2024. The company’s net sales reached ₹1,147.64 crore, reflecting an 8.64% increase from ₹1,056.40 crore in December 2023.

However, quarterly net profit declined by 27.58% year-on-year to ₹176.99 crore, down from ₹244.38 crore. The EBITDA also fell 22.73% to ₹284.23 crore compared to ₹367.82 crore in the previous year.

Earnings per share (EPS) dropped significantly, standing at ₹6.73 in December 2024, compared to ₹18.58 in December 2023.

Cochin Shipyard’s stock closed at ₹1,411.45 on February 5, 2025, reflecting a -38.38% return over the past six months but a 59.58% gain over the last 12 months.

Cochin Shipyard has announced its consolidated financial results for the quarter ending December 2024. The company’s net sales rose to ₹1,147.64 crore, marking an 8.64% increase from ₹1,056.40 crore in December 2023.

Despite the revenue growth, the company experienced a decline in profitability. The quarterly net profit fell by 27.58% to ₹176.99 crore from ₹244.38 crore in the same period last year. EBITDA also declined by 22.73% to ₹284.23 crore, compared to ₹367.82 crore in December 2023.

Earnings per share (EPS) dropped significantly, standing at ₹6.73 in December 2024, down from ₹18.58 in December 2023.

Cochin Shipyard’s stock closed at ₹1,411.45 on February 5, 2025. The stock has delivered a -38.38% return over the past six months but has gained 59.58% over the last 12 months.

Cochin Shipyard Q3 FY25: Net Profit Falls 27.6%, Revenue Rises 8.6%

Cochin Shipyard Q3 Shock: Profit Plunges 27% Cochin Shipyard reported a 27.58% decline in net profit for the quarter ending December 2024, with earnings dropping to ₹176.99 crore from ₹244.38 crore in the same period last year.

However, the company’s revenue showed an upward trend, rising by 8.64% to ₹1,147.64 crore compared to ₹1,056.40 crore in December 2023.

Key financial indicators also showed a decline:

• Operating Profit Margin (OPM) fell to 20.69% from 29.35%.
• Profit Before Depreciation and Tax (PBDT) declined by 24% to ₹273.38 crore from ₹359.61 crore.
• Profit Before Tax (PBT) dropped 29% to ₹241.86 crore from ₹340.04 crore.

Cochin Shipyard Shares Drop Over 5% After Q3 Profit Decline; Interim Dividend Announced

Cochin Shipyard Q3 Shock: Profit Plunges 27% Cochin Shipyard’s share price dropped over 5% on February 7 after the company reported a 27% year-on-year decline in its Q3 profit. The stock hit an intraday low of ₹1,335 per share on the NSE, falling 5.42%. As of 10:20 AM, it was trading at ₹1,362.45, down 3.47%.

The company reported a profit after tax (PAT) of ₹177 crore for Q3 FY25, down from ₹244 crore in the same quarter last year. Meanwhile, revenue from operations rose 9% to ₹1,148 crore from ₹1,056 crore a year ago.

Cochin Shipyard’s board also announced a second interim dividend of ₹3.50 per share (70% of the face value of ₹5 per share) for FY 2024-25, setting February 12, 2025, as the record date.

The stock opened with a gap-down and has been declining for the last two trading sessions.

Analyst Predicts Cochin Shipyard Shares Could Decline Another 40% Post Q3 Results

Cochin Shipyard Q3 Shock: Profit Plunges 27% Shares of Cochin Shipyard Ltd. have already dropped significantly from their peak in July last year, but analysts at Kotak Institutional Equities believe the correction isn’t over yet. The brokerage has maintained a “sell” rating on the stock, revising its price target to ₹830 from ₹800, implying a potential downside of 40% over the next twelve months.

On Thursday, the stock closed at ₹1,411.45 on the NSE, down 1% from the previous session. Despite strong performance in the ship repair segment, Kotak noted that weakness in shipbuilding offset these gains in the December quarter. The brokerage expects the ongoing INS Vikramaditya ship repair project to support margins until Q1 FY26.

Cochin Shipyard’s stock had seen massive rallies in recent years, surging 127% in 2024 and 153% in 2023. However, in 2025, the stock has declined by 8.3% so far. Analysts caution that the lack of major defense contracts in the pipeline, along with reports of delays in the IAC-2 aircraft carrier project, could limit future growth prospects.

In Q3 FY25, Cochin Shipyard reported a 28% drop in net profit to ₹177 crore from ₹244 crore a year earlier. The company’s operating margin declined by 870 basis points to 20.7%, though revenue grew 8.6% year-on-year to ₹1,148 crore.

Cochin Shipyard Q3 Results: Net Profit Drops 27% YoY, ₹3.5 Per Share Dividend Announced

Cochin Shipyard Q3 Shock: Profit Plunges 27%:   Cochin Shipyard reported a 27% year-on-year decline in net profit, posting ₹177 crore in Q3 FY25 compared to ₹244 crore in the same period last year. Despite the profit drop, the company’s revenue from operations grew by 9% YoY to ₹1,148 crore, up from ₹1,056 crore in the corresponding quarter of the previous fiscal.

The company’s EBITDA fell 23% to ₹237 crore, compared to ₹310 crore in Q3 FY24. Operating margins also contracted sharply to 20.7%, reflecting increased cost pressures. Total expenses surged to ₹9,525 crore, up from ₹7,741 crore in the previous year’s quarter.

As part of its financial announcements, Cochin Shipyard’s board declared a second interim dividend of ₹3.5 per share for FY 2024-25, setting February 12 as the record date. The dividend is expected to be paid to eligible shareholders on or before March 7, 2025.

On Thursday, Cochin Shipyard shares closed 1.04% lower at ₹1,409 on the NSE.