Cochin Shipyard secures electrical vessel building contract

The state-owned category-1 PSU Cochin Shipyard informed the bourses that the company has secured an autonomous electrical vessel project on Wednesday after the market hours.

The company has signed a contract to construct autonomous electric vessels for ASKO Maritime AS, Norway. The length of this vessel is 67 metre and will be delivered as a full-electric transport ferry initially. Once in operation, this vessel will create a new benchmark for the merchant shipping world in the field of autonomous vessels with zero carbon emission.

This project would further enhance Cochin Shipyard’s presence into the division of premier shipbuilding yards with a capacity to handle hi-tech vessel construction.

Looking at the current order book position, it stood at Rs 14,630 crore, which provides healthy revenue visibility. For its new orders, the company has placed bids for a few projects such as six new-generation missile vessels amounting to Rs 13,600 crore on a competitive basis. These orders would make it sustained after it fully recognises IAC revenues till FY22. The company derives ~83 per cent of the total revenue from the shipbuilding segment and ~17 per cent revenue from the ship repair segment.

Cochin Shipyard is the first greenfield and presently, the most modern shipbuilding and ship repair yard in India. The company mainly caters to the clients, who are engaged in India’s defence segment as well as the global commercial shipping sector.

Today, the stock of Cochin Shipyard jumped nearly four per cent and made an intraday high of Rs 334.50 on BSE. The stock has gained nearly 26 per cent in the last three months.