My notes from the Q4 concall
- FY23 will be flat, FY24 will go up by 15-20% and FY25 by 12%
- FY22 turnover at different ports → Mumbai: 85 cr., Kolkata: 33-34 cr., Got started in Andaman
- Will have some headwinds in ship building revenue recognition in FY23, this will start growing in FY24 and FY25. Ship repair will do well in FY23 and be around 900 cr.
- For ASW SCW corvette, targeting revenues of FY23: 600 cr., FY24: 1’000-1’200 cr., FY25: 1’200-1’400 cr.
- For next-2 years, EBIT margins will be ~15% (will be higher at 18% in FY23 due to IAC order execution)
- Most of the commercial contracts (including naval) are fixed cost, only price pass through contract is with IAC
- 2030 revenue target is 10’000 cr., realistically they are targeting 6000-6500 cr. revenues by FY26
- In terms of competition in European markets, Cochin can outbid East European companies but Turkey and China are very competitive
- Trying to get orders of 120-130 m kind of vessels in Europe, this is a very large market with a large replacement demand coming up. Chowgule has done well in this segment executing orders for 20-25 ships
- Secured a new 900 cr. order for one large dredger from Dredging Corporation of India which could go up to 3 vessels
- Indian private ship companies only use Cochin Shipyard’s repair services for critical parts (like under water). PSUs on the other hand use whole range of ship repair services
Disclosure: Invested (position size here, bought shares in last-30 days)