Shares of Cochin Shipyard ended the trading day with a decline of over 3%, closing 3.57% lower at Rs 1360.85 on the Bombay Stock Exchange (BSE). This drop followed the defence firm’s announcement of its Q3 earnings for the financial year. As a result, Cochin Shipyard’s market capitalization fell to Rs 35,801 crore. In the afternoon session, approximately 1.02 lakh shares of the company were traded, amounting to a turnover of Rs 13.92 crore.
Despite the recent downturn, Cochin Shipyard's stock has shown impressive growth over the past year, rising 55%. Over the past two years, the stock has surged by 461%. However, it is currently trading in a bearish trend, underperforming in comparison to its short- and long-term moving averages. Its relative strength index (RSI) stands at 43.8, indicating the stock is neither in an oversold nor overbought zone.
The company reported a 27.6% decline in net profit for the third quarter, with earnings dropping to Rs 177 crore, compared to Rs 244 crore in the same period last year. Revenue for the quarter increased by 8.6%, reaching Rs 1147.6 crore, up from Rs 1056.4 crore in the corresponding quarter of the previous fiscal year. However, the company’s EBITDA experienced a 23.4% decline, falling to Rs 237.4 crore from Rs 310.1 crore in Q3 of the previous fiscal.
In addition to its earnings report, the company’s board of directors declared a second interim dividend of Rs 3.50 per equity share for the financial year ending March 31, 2025. This dividend is in addition to the Rs 4 interim dividend announced earlier in November 2024. The earnings and dividend declaration were made after market hours on Thursday.
Cochin Shipyard Limited is a prominent player in the shipbuilding and ship repair industry, involved in the construction and repair of various types of vessels, including upgradation, periodical repairs, and life extension of ships.
