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Cochin Shipyard hosted a conference call on Aug 14, 2018. In the conference call the company was represented by Madhu S Nair, CMD.
Key takeaways of the call
Ship Building order book as end of Aug 13, 2018 was Rs 4622.60 crore and of which balance order to be executed was Rs 1962.42 crore. Balance order to be executed in case of Indigenous Aircraft Carrier was Rs 616 crore.
Ship Repair order book is roughly about 870 crore of which INS Vikramaditya accounts Rs 520 crore and others Rs 350 crore.
ASW SCW Corvette , which worth RS 5392.00 crore is taking longer time to finalize technical specification. The draft contract is also discussed. In couple of months orders will be concluded.
Of the Ship building segment STO of Rs 454 crore about 81% came from defence and that of Ship Repair revenue of Rs 204 crore about 60% came from defence.
Though the company was declared L1 for 56 coastal ships and Rs 348 crore order for border outpost project from Ministry of Home Affairs as these projects show no sign of moving forward. So this is not part of order book if that starts moving the company will place it part of order book pending agreement signing.
The company is trying to corner maximum share of defence repair.
Submitted more than 15 RFI with Indian Coast Guard and Indian Navy. Once it is accepted RFP from accepted parties. It will take 18 months from RFI to RFP.
Expect the two Passenger vessels order for Andaman to get launched by Sep 2018. DRDO some delay in delivery of the orders
The company has cut steel last month in case of 10 numbers of RORO vessel order from Inland Waterways Authority.
On Ship-repair the work on Rs 550 crore INS Vikramaditya as well as Sagar Bhushan, which met with fire accident is getting executed now.
Of the total Ship Repair revenue for Q1FY19 about Rs 114 crore revenue has come from INS Vikramaditya. Under Ind AS 115, only cost and revenue of this Rs 115 crore were booked and profit not booked.
By Sep 22, 2018, bulk of ship repair work on INS Vikramaditya will be completed and sail. Then she come back on 25th may to Cochin Port for 4 weeks stay during which some work will be carried and then sail to Karwar, where some work will be carried out.
Focus is on Phase 3 contract and target to conclude the contract during Dec 2018-Mar 2019.
Capex projects – The work on Rs 1799 crore dry dock projects is going on with L&T moving in its project team. On IFRS ship repair projects the work is gathering pace.
Targeted to commence operation of Mumbai Ship Repair facility by August 2018 but as agreement not yet concluded that got delayed. Once that is over the company will commence operation at Kolkata.
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