Why did the net profits of Cochin Shipyards fall so sharply in the Jun-20 quarter?
Answer
Answer
India’s largest commercial ship builder, Cochin Shipyards reported a 65% fall in its net profits at Rs.43 crore for the Jun-20 quarter. This was largely on account of the lockdown following the COVID-19 pandemic.
Total income from operations for Cochin Shipyards fell 55% to Rs.332 crore. CSL is currently engaged in the building and repair services for ships for domestic and international customers via its facility at Malpe in the state of Karnataka.
Cochin Shipyards is also expanding its footprint in the business inorganically, having submitted a resolution plan for Tebma Shipyards under the NCLT. However, this profit fall could be largely temporary on account of the lockdown, with limited long term effects.