Shares of Cochin Shipyard Ltd rallied 5.5% to touch the day’s high of Rs 1,574.50 on 17th February. This happened after the company announced that it had emerged as the lowest bidder for a Rs 5,000 crore Navy vessel contract.
The firm was declared the lowest bidder (L1) for a tender floated by India’s Ministry of Defence. The tender was to construct five Next Generation Survey Vessels (NGSVs) for the Indian Navy.
The company said in an exchange filing on Monday, 16th February, that the estimated total order value stands at around Rs 5,000 crore. However, the final award of the contract will depend on the completion of necessary formalities. It also clarified that the deal does not involve any related party transactions. Furthermore, its promoter group has no interest in the awarding authority.
Cochin Shipyard Q3 Results
For the quarter ended 31st December, net profit fell 18.3% year-over-year to Rs 144.6 crore. This was compared with Rs 177 crore in the same period last year.
Revenue rose 17.7% year over year to Rs 1,350.4 crore, indicating steady project execution. However, EBITDA declined 21.5% to Rs 186.6 crore from Rs 237.6 crore a year ago. The operating margin also narrowed sharply to 13.8% from 20.7%.
At 10:10 AM, shares of Cochin Shipyard were trading 4.72% higher at Rs 1,538.70 on NSE.
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