• Upside in revenue for the quarter was largely due to higher ship building revenue. Ship-building revenue for the quarter was up by 8% to Rs 712.56 crore (or 84% of sales). The segment revenue of ship repair was down by 17% to Rs 104.13 crore (or 16% of sales).
• EBIT was up by 39% to Rs 242.20 crore and that was driven by both shipbuilding and ship repair business of the company. The ship building profit was up by 18% to Rs 213.22 crore driven by higher sales as well as 260 bps expansion in segment margin to 29.9%. The ship repair business registered a segment profit of Rs 28.98 crore against a loss of Rs 7.13 crore in the corresponding previous period.
• OPM expanded by 600 bps to 19.9% and that is largely due to fall in all cost heads barring staff. Material cost (including cost of traded goods) as % of sales was lower by 430 bps to 48.3%. Similarly the sub-contract charges and OE was down by 260 bps (to 9.6%) and 100 bps (to 11.7%) respectively. But the staff cost was up by 190 bps to 10.6%.

Yearly Performance

Sales was up by 15% to Rs3422.49 crore. Higher sales with 140 bps expansion in operating profit margin resulted in 24% increase in operating profit to Rs706.50 crore. Further with 8% increasein other income to Rs 245.08 crore, the PBIDT wasup by 20% to Rs951.58 crore. After accounting for higher interest and depreciation, the PBT was up by 15% to Rs857.72 crore. The EO Expense for the period as well as corresponding previous period was nil and thus the PBT after EO was up by 15% to Rs857.72 crore. With taxation standing lower by 16% to Rs 225.71 crore, the PAT was up by 32% to Rs 632.01 crore.

Order book

Order book as end of March 31, 2020 to Rs 14630.62 crore of which ship repair orders was Rs 500 crore.

Other developments

To pay a dividend of Rs 15/- per equity share of face value of RS.10 for the financial year ended March31, 2020 subject to approval of shareholders in the ensuing AGM.