Cochin Shipyard and Maersk to Collaborate on Ship Repair and Maintenance

Cochin Shipyard has entered into a memorandum of understanding (MoU) with AP Moller-Maersk to explore collaboration opportunities in ship repair, maintenance, and shipbuilding in India. The MoU focuses on key areas of cooperation, including the sharing of technical expertise to achieve global standards in ship maintenance, as well as exploring opportunities in ship repair, dry docking, and new building. Additionally, the agreement includes joint training programs aimed at promoting responsible practices and skill development for both Cochin Shipyard and Maersk seafarers, as announced in an exchange filing.

On the financial front, brokerage firm Kotak Institutional Equities has issued a ‘sell’ rating on Cochin Shipyard, predicting a potential 40% decline in its stock over the next 12 months. The company’s December quarter results were deemed in-line with expectations, with strong performance in the ship repair segment offset by weaknesses in shipbuilding. The third-quarter net profit saw a 27.6% decrease to Rs 177 crore compared to the previous year’s Rs 244.4 crore, while revenue from operations increased by 8.6% to Rs 1,147.6 crore from the previous year’s Rs 1,056.4 crore.

The company’s EBITDA also experienced a decline, falling by 23.4% to Rs 237.4 crore from Rs 310.1 crore in the year-ago period, with an EBITDA margin contraction to 20.7% from last year’s 29.4%. In response to the financial performance, the board of directors declared a second interim dividend of Rs 3.5 per equity share for the financial year ending March 31, 2025, in addition to the previously recommended interim dividend of Rs 4. As of Monday, February 17, Cochin Shipyard shares were trading 1.72% lower at Rs 1,215 apiece and have witnessed a 43.67% decline in the last six months.

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