Cochin Shipyard Wins ₹200 Crore ONGC Contract for Rig Repairs
Cochin Shipyard Ltd (CSL) has secured a ₹200 crore contract with Oil & Natural Gas Corporation (ONGC) for repair and maintenance of a jack-up rig. This project is set to be completed within 12 months, as stated in a stock exchange announcement. The promoters of CSL have no stake in ONGC, ensuring transparency in the deal.
This contract follows a series of recent successes for CSL. In July, the company obtained an order from Polestar Maritime Ltd. for two tugs, adding to a previous order for three vessels from its wholly owned subsidiary, Udupi Cochin Shipyard Ltd. Additionally, CSL declared a final dividend of ₹2.25 per share last week.
Financially, CSL reported an 8% increase in net profit for the quarter ending June 30, reaching ₹187.83 crore, up from ₹174.24 crore the previous year. Revenue rose significantly by 38.5% to ₹1,068.59 crore, while operating income (EBITDA) increased by 36% to ₹241.36 crore. The EBITDA margin, however, decreased to 22.6%.
For investors, Bloomberg data shows mixed recommendations, with one analyst giving a ‘buy’ rating and two advising ‘sell’. The average 12-month price target stands at ₹1,504.67, indicating an upside potential of approximately 8.1%.
