Cochin Shipyard signs ₹200 crore contract with ONGC for jack-up rig repairs

Cochin Shipyard Ltd (CSL) announced it has signed a contract worth around ₹200 crore with Oil & Natural Gas Corporation (ONGC) for dry dock and major lay-up repairs of one of ONGC’s jack-up rigs. The project is expected to be completed within 12 months, the company said in a stock exchange filing, adding that promoters have no interest in the awarding entity.

The deal comes on the heels of recent wins for CSL. In July, the company secured an order from Polestar Maritime Ltd. for two 70-tonne bollard pull tugs, following an earlier order for three similar vessels placed with Udupi Cochin Shipyard Ltd., its wholly owned subsidiary. Last week, CSL also declared a final dividend of ₹2.25 per share.

On the financial front, the company reported an 8% year-on-year rise in net profit to ₹187.83 crore for the quarter ended June 30, compared with ₹174.24 crore a year earlier. Revenue surged 38.5% to ₹1,068.59 crore, while operating income (EBITDA) rose 36% to ₹241.36 crore. The EBITDA margin, however, contracted to 22.6%.

According to Bloomberg data, of the three analysts tracking the stock, one has a ‘buy’ rating and two recommend ‘sell.’ The average 12-month price target of ₹1,504.67 implies an upside potential of about 8.1%.