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In this edition of Ideas For Profit, Moneycontrol's Sakshi Batra shares insights into the quarterly show of Cochin Shipyard and outlines the reasons for investors to keep it on their radar
Due to COVID-19 led lockdown, lack of availability of labour and other execution issues resulted in a huge loss of revenue for Cochin Shipyard. The company reported a steep 55 per cent drop in its total revenue in the quarter ended June 2020. Among segments, ship repair business suffered the most, reporting 88 per cent year on year drop, led by lack of workforce and availability of labour.
However, the company has gradually started functioning with 50-60 per cent of its capacity and hopes to recoup some of these revenue losses in the coming quarters.
FY22 could be a big year for the company, considering that much of these delayed projects and execution would be shifted to next year and thus provide a boost to revenue and margins due to advantage of scale.