Ladies and gentlemen, good day and welcome to the Q1 FY 2026 Results Conference Call of Cochin Shipyard Limited, hosted by Kirin Advisors Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded and scheduled for one hour. I would now like to hand the conference over to Ms. Chandni. Thank you and over to you, ma'am.
Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of Cochin Shipyard Limited. From the management team, we have Shri Madhu S. Nair, Chairman and Managing Director, Shri Jose V. J., Director of Finance, Shri Rajesh Gopalakrishnan, Executive Director, Ship Repair, Shri Harikrishnan S., Executive Director, Shipbuilding, Shri Shiraz V. P., Chief General Manager, Planning and Project Management, Shri Shibu John, General Manager, Finance, Shri Vulli Haranath, Deputy General Manager and EA to CMD, and Shri Syamkamal N., Company Secretary. Now I hand over the call to Shri Madhu S. Nair. Over to you, sir.
Good evening, everyone, and welcome to the First Quarter Results Conference Call of Cochin Shipyard Limited for the Financial Year 2025-2026. The people present in this call from the Cochin Shipyard Limited side have already been mentioned. Let me briefly share the highlights of the first quarter. During this quarter, CSL secured new orders, including two 70-ton bollard pull tugs from M/s. Polestar Maritime Limited and a Luxury River Cruise Vessel for Heritage River Cruise Journeys through the Hooghly Cochin Shipyard Limited . On the delivery side, we handed over the 19th Electric Hybrid Water Metro Boat to Kochi Metro, and Udupi CSL delivered its first dry cargo vessel to the European client. We also signed two important MOUs that strengthen our global collaboration. With Drydocks World UAE, the MOU was signed to explore the development of ship repair clusters at Kochi and Vadinar.
With HD KSOE of South Korea, we intend to jointly explore new shipbuilding opportunities, share technical expertise, and work together to scale up productivity, capacity utilization, and workforce skills. These partnerships will help us position India more strongly in the global market and will help to achieve the targets envisioned in the Maritime India Vision 2030 and the Maritime Amrit Kaal Vision 2047 Documents. I'm also pleased to report that both our major capital projects, namely the new Drydock and the International Ship Repair Facility (ISRF), have been completed and are now operational. This marks an important step in expanding our capabilities and strengthening our long-term growth prospects. Turning to the financial performance, we reported a turnover of INR 1,068.59 crore in Q1, up from INR 771.47 crore in the same quarter last year.
Profit before tax was INR 249.54 crore compared with INR 235.82 crore last year, and profit after tax rose to INR 187.82 crore from INR 174.23 crore. Our EBITDA margin for the quarter stood at 28% and PAT margin at 18%. These results reflect steady growth and operational strength. Our order book remains good at about INR 21,000 crore. This includes ship repair order books also of approximately INR 1,500 crore. The balance out of the INR 21,000 crore is the shipbuilding order book, which is about INR 19,500 crore across 75 vessels in the Kochi facility, the Udupi CSL, and the Hooghly CSL.
Out of the 75 vessels on order, 25 vessels are in design and construction stage that is in the early stages, 37 are under fabrication and assembly stages, which is in the mid stages of the shipbuilding cycle, and 13 vessels have been launched and are in advanced stages of completion. This concludes my brief overview of the first quarter. We value your trust and continued support, and with that, we are happy to have questions from our investors and from all of you. We are happy to take these questions. Thank you.
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question. Kindly restrict yourselves to two questions. For any more questions, you may rejoin the queue. As a reminder, this call is scheduled for one hour. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Sucrit Patil from Eyesight Fintrade . Please go ahead.
Good afternoon to the Cochin Shipyard team. I have two questions. My first question is to Mr. Madhu Nair, and the second is to Mr. Jose . Good afternoon, Mr. Nair.
Yeah, good afternoon.
Yes. Just touching base on your previous calls, I have a forward-looking session. In the last few calls, you spoke about Japan's exports of green vessels and using modular construction for faster shipbuilding. Now that the revenue has grown considerably on the positive side this quarter, are you planning to build a full digital shipyard model where AI and smart sensors and modular systems will work together to reduce the build time and improve the global competitiveness? Is there a roadmap to make Cochin Shipyard a global center for smart naval manufacturing? Yes, thank you, sir.
See, we will invest into modern systems, especially on the engineering side. On the production side also, there would be digital tools and gadgets being adopted. As you pointed out, we are not currently talking about moving entirely into a smart shipyard kind of a configuration. We will take facets out of what is smart, but we will not be a fully fly-by-wire kind of smart shipyard. That is not on the anvil. Yes, we will adopt technology wherever it is required.
Okay, great. Thank you. My follow-up question is to Mr. Jose. I believe he's on the call today.
Yeah, I'm there. I'm there.
Okay, go ahead. Yes, sir. I just want to understand from a financial point of view, as Cochin Shipyard is trying to invest in new tech, build modular yards, and export plants, how do you decide where to spend first? Is there a system that helps you balance short-term profit with long-term growth? I just want to understand how you approach the whole thing. Thank you.
We have a long-term plan. This is 2030 and 2047, based on which we have set certain priorities based on the sectors in which we have to invest. Based on that, we have a long-term investment plan. Accordingly, we will do that based on the merits of each case.
Okay, fine. Thank you very much. I wish the entire team the best for the next projects ahead.
Thank you.
Thank you.
Thank you. The next question comes from the line of Deepak Krishnan from Kotak Institutional Equities. Please go ahead.
Hi, sir. Am I audible?
Yes.
Yeah, so I just wanted to understand the HD KSOE announcements, the dry docks announcements, as well as other announcements with Maersk. Each of these three, how at what stage are we in terms of getting anything on the ground? Are we looking at building a separate shipyard with HD? In terms of medium term, what could potentially be the revenue potential that could come through from all of these ventures? What are we planned to do by when and what is the sort of revenue that we are looking at?
Actually, with HD KSOE, we are talking largely shipbuilding and that too merchant shipbuilding. If you are asking for a timeline for such things, we will start with engagement from our Cochin facility. You are aware that in the Cochin facility, we have completed a new large dry dock, which is a 310-meter large dry dock.
The initial approach would be to make sure that that dry dock is leveraged to its optimal or its best capacities, for which what we are thinking at this stage would be to create additional fabrication capacities aligning with HD KSOE's thought process and using those fabrications, that fresh fabrication capacities to build more vessels in a much more competitive timeframe from this new dry dock. The dry dock is already completed. It is already operational. To use that dry dock to build more vessels in a more competitive framework. This is HD KSOE's core engagement. Along with it, naturally, there will be skill sets improvement. There will be training improvement. There will be going to be engineering cooperation. It is actually a comprehensive, I'm using the word comprehensive and long-term. It is a comprehensive long-term association with HD KSOE on the shipbuilding side.
With Drydocks World Dubai, it is actually ship repair, which is the core focus. It could also encompass other areas, but then it is ship repair to start up with. The intent is, again, long-term. As you're aware, Drydocks World is one of the most respected ship repair and specialist shipbuilding organizations in the Middle East. With them, the intent is to leverage the newly completed international ship repair facility at Cochin, again, to start off with, so that the working relations and the methodologies are strengthened. Once we get into that, we have also discussed further expansion of that cooperation. Again, that would be ship repair at the initial stages. Overall, we are talking about anything between three to five years for these things to actually mature and come. Certain things, the ship repair part could happen in the next one and a half, two years onwards.
The shipbuilding part, as you are fully aware, will take a little bit more time. Largely, we are talking about a horizon of around three to five years for these things to fructify. The important part to note here is that both these organizations, HD KSOE is the number one, as we are speaking, the number one shipbuilding group in the world from South Korea, and Drydocks World Dubai is potentially one of the most reputed groups in the world from the Middle East. These relationships, again, I use the word long-term, these relationships are strategic in nature, pure business-driven, and the teaming up is working very well. That is all I can say at this stage.
I'm not in a position to paint any financial figures out of both these associations at this stage, but these are very critical, very important, and with a long-term view for our organization and from HD KSOE and Drydocks World's point of view. You also touched upon the Maersk MOU. This is, again, multiple fronts: startup, ship repair, and people skilling. There could also be potentially, at a later stage, there could also be shipbuilding. Initially, we would be happy to target to get the ball rolling this calendar, this financial year, trying to get one vessel of Maersk to be repaired in our ship repair facility at Cochin. Again, I will not want to paint financial figures onto this. Maersk being one of the most leading shipping companies in the world, we take pride in these associations.
Sure, sir. Maybe just wanted to understand on the order pipeline given in the slide, you know, INR 2.2 trillion total but INR 1.29 trillion is at RFI stage for, you know, the defense side and the INR 65,000 crore for on the commercial front. In this context, also wanted to understand where are we in terms of IAC-2, any development since the last earnings call that we've held. The pipeline for both defense, commercial, and IAC, if you could give any updates on all of those.
See the pipeline on the defense. What we wanted to convey is that there is enough and there is a strong order pipeline. There are a few projects which have already crossed the bidding stage, and we have bid against that. There are others in the interim stage at the RFI stage, and there will be more to come.
All we wanted is that there is enough from the defense side that is coming in. On the commercial side, what we have predicted is we are not talking whatever is there in the world. That kind of assessment, we feel, does not have a meaning for us. What Cochin Shipyard is looking at, where there have been some form of interactions and some thought process, that is what we are painting here. Both look good. We will run our defense establishment also strongly. We will run our commercial establishment also strongly, and we feel the pipeline is good for that. There was a third point which was asked.
The IAC-2.
IAC-2. Again, we are not in a position to convey anything. I can say that there are no fresh developments to report. That is all I can say. I think we are hopeful, but we are not in a position to hazard a guess on the timelines.
Sure, sir. Maybe if I can just squeeze one question. You know, ship repair, we have seen very strong margins. I think it's a function of both the two IACs, you know, Vikrant and Vikramaditya, and the EP requirement for getting executed. Now that those orders are out, how are we looking at, say, overall margins for the year? Specifically, any comments on the two segments between shipbuilding and ship repair? How are we looking at margin profile for FY 2026?
Jose, you want to?
Yeah, Ship repair last year, we are saying as you rightly said, there were two aircraft carriers. We may not have that much margin coming from ship repair this year. Still, ship repair will do a decent performance this year, maybe around INR 1,500 crore levels. The margin may not be at the level of what you have seen last year.
Answer on shipbuilding?
Shipbuilding also, that margin, as you rightly said, that the shipbuilding margin is not at the level of ship repair. It is around 10% - 2% normally. That kind of margin we can expect from shipbuilding also.
On an overall PAT levels, we would guide.
Around 15% on a PAT margin levels.
Sure, sir. Thanks for all the answers.
Thank you. A reminder to all participants, you may press star and one to ask a question. Also, restrict yourselves to two questions. For any more questions, you may queue in the field. The next question comes from the line of Dhiraj Dave from Samvad Financial Services LLP. Please go ahead.
Hello, can you hear me?
Hi.
Yeah.
T hanks a lot for providing me a call, and congratulations on this first enemy. My first question is, does it still always boot this JV? Do we expect further CapEx to be incurred, or the new JVs would be corrected?
You're not coming out clear. Can you get it better?
I think the new JVs, whether it will have more CapEx from CSL side.
See, on the HD KSOE side, as we are moving forward, there will be CapEx in, as I said, new workstation facilities. We are discussing this. We are not in a position to comment at this stage, but there would be more CapEx . On the Drydocks World side, we are already having the ship repair facility with a shiplift and six workstations already completed. For that, there won't be further CapEx . Teaming up with Drydocks World, when we expand further the business, we will look at CapEx . Whether it's CSL or whether it would be together, these are early days. We may not be able to comment on it. It will count for further investments given the opportunity.
Yeah. My one suggestion from my side is, when you give us a presentation, please try to include an order movement also over a period, because basically, we get like on the figures and everything. Since it's material, if at least whatever order in hand or order pipeline, please show that also over a quarter or over a year, whatever is convenient and what you want to convey there. That will help us. It gives us context. Order in hand, whatever we are order book.
Order book has been given in the slide.
Yeah, I know. Basically, that order book of INR 2 lakh crore. Last year, it was INR 150,000 crore or INR 2 50,000 crore. What my suggestion would be is that at least over a year, if you can compare, it helps us to understand.
Okay. Noted. Noted. Noted.
Thanks a lot. Thanks for giving opportunity.
Thanks.
Thank you. The next question comes from the line of Naman Jain with Kotak Institutional Equities. Please go ahead.
Hello. Am I audible?
Yeah.
Yeah, sir. A couple of questions. One is, you gave the PAT guidance of 15%. If it's possible, can you also give top line growth guidance for the year?
Top line, for the current year, from where we were last year, it should be considered 14 %-1 5% top line growth.
Okay. Thank you. Secondly, sir, on the two new facilities which you have created, obviously, the ISRF will be used at a faster pace from our new MOU as far as what I've understood. What sort of asset turn or maximum, because obviously, this is the first facility which you'll use, right? What is the top line that you can potentially generate from here before we move on to additional CapEx as we scale up our ship repairing business?
Yeah. This is the ISRF. We hope we should be able to get into about, in about the initial 18 to 24 months, we should go to about INR 250 crore of extra revenue. In full-blown condition, we go to about INR 600+ crore.
Okay. If you can share something on the new dry dock also, if possible, that will be very useful.
That's a little bit difficult to decipher it that way because that gets reflected in the overall topline. You can't, because shipbuilding, you can't exactly put it into one facility because a dry dock does not produce ships. The overall ecosystem produces ships. Ship repair, I can fit much more with clients.
Correct. Lastly, sir, if you can share something as in basis, the current facility we have, right, and the current revenue we are generating from shipbuilding, how much more CapEx we'll need, let's say, if we want to double our revenue size for shipbuilding eventually in four or five years, given we are already anyways growing at 14%-15%. We'll double likely in five years. What more CapEx do we need, if you have some estimate?
We have in various discussions earlier said by about 2030, 2031, somewhere around that period, we should, as I said, double and double our turnover kind of a level for which we may not need too much CapEx as we are because we have already completed almost INR 3,250 crore of CapEx cycles across the two facilities and some of our subsidiaries. That has been done over the last, say, about seven years. That is completed. Going beyond that double, that figure, which is, say, something like INR 10,000 crore, INR 11,000 crore, INR 12,000 crore in about 2030, 2031, crossing that threshold and moving forward is where we'll invest the CapEx now. Any CapEx we are investing now will take some time to turn around and you have to, shipbuilding facilities are not very easy to build up. It takes time.
We are talking about that capex, which we'll invest over the next, let's say, five years or so, and you'll see the outcomes of that coming beyond 2030 kind of a requirement.
Right now, from now on, we'll generate, we'll be generating free cash primarily from our existing facility.
This is the end. This is the end.
Okay. Thank you. Thank you.
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Akhilesh Gupta, an individual investor. Please go ahead.
Hi, am I audible?
Yeah.
Hi. First of all, congratulations on a good set of numbers. Hello?
Yeah, go ahead, please.
Yeah, I just wanted to know the increased Maritime Development Fund that the government has announced, around INR 70,000 crore. How much of it are we going to tap onto?
The Maritime Development Fund, the contours are not coming fully in public domain, but the Maritime Development Fund is essentially a fund for multiple uses. It will help fund ship owners to raise orders for shipbuilding in India. It will support in case an organization like Cochin Shipyard Limited wants to, there could be an equity part in it. There could be a debt part in it. Funding could be available from the Maritime Development Fund. It is essentially a pool. It's a specialist maritime financial pool. We should take it at that point. It is not a grant from the government. It is not just money, which is, what should we say? Like it's not available. It's not just available as a freebie kind of a thing. That is not what we are talking.
It will take into account the specific nature of requirements in the shipbuilding and the shipping industry. It's not just for shipbuilding. It's also for shipping. As I said, if, for example, we need investments which are long-term in nature and we need a part of that as equity, potentially, the MDF could come in as an equity partner. The MDF could come in as a loan at an affordable rate. We are not in a position to say exact figures on this, but we are factoring in the MDF into our discussion.
Okay, thank you so much.
Thank you. The next question comes from the line of Dhanraj Tolani, an individual investor. Please go ahead. Dhanraj, go ahead with your question. Dhanraj, please unmute yourself.
Yeah, am I audible now?
Yes.
Yeah.
I just wanted to know what is the current utilization rate of your, I would say, new dry dock or ISRF facilities?
The new ISRF, as we are speaking, we have, Rajesh, how many vessels? 14 vessels.
14, 14 vessels.
14 vessels are under various stages of repair in the ISRF. When we say this, we say that the total strength of ISRF is 82 ships per year. That is what we are talking. We currently have 14 vessels at ISRF, and on the new dry dock, we are not in a position to talk about a utilization factor kind of a thing. It's normally talked about in dock days. Right now, there are two MBVs.
Two MBVs.
There are three vessels being built in the dock.
One in one.
There will be one dredger, one dredger which will come in for ship repair. It is actually being utilized to the full right now. We are not probably in a position to give you a percentage kind of a thing at this.
Does that answer your question, Dhanraj? Dhanraj, are you there?
Yes. Okay. Do we have any plans to expand to offshore renewables or allied?
Plans to expand?
Sorry?
I didn't get that question.
Do we have any plans to expand to offshore renewables or allied segments?
Not right away.
Okay. Currently, if you like, given the current order book, what revenue growth do we expect in the FY 2026?
Revenue growth FY 2026, as I said, 14 %- 15%.
Okay. How do you balance between domestic projects and higher margin international commercial projects? How do you see the balance?
This depends on, we have given our order book in the presentation. We have projects on hand, both from the defense, which is all domestic, and commercial. We have domestic commercial, we have export. It's a balance between this, and it's from a business point of view, and it's from an infrastructure point of view. I think if you can just have a look at the order book portion of which we have presented, you'll get a fair feel of what we are suffering.
Are we taking any steps to upscale our workforce for that, or?
Yeah, very much. We are continuously at multiple levels of skilling for the workmen. There are capability and capacity development for the officers and the supervisors. That's an ongoing process, and we are putting in quite some efforts in that direction.
Okay. Okay. Thank you. That's all from me.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Priyal Jain from Green Capital. Please go ahead.
Hello, how are you, sir? Am I audible?
Yeah, please.
I'm new to the company and just wanted to understand a few things. Can you give me a breakdown of the profitability profile across your domestic commercial and export orders?
We have put in a few details in the presentation that's already uploaded. Would it be good? That's too general and too large a question to be answered pointedly. If you have a few pointed questions, maybe we'll be able to answer it. Otherwise, it's going to be difficult because it's very general what we have asked.
Sorry, I heard that. Okay, a few more questions. If you can give me a tip about a working capital requirement for such large order pipeline.
Can we request you to send in your most important questions by email to the Company Secretary? We'll respond to it.
Yeah, sure, sir. If you can give me a few pointers, like what opportunities do you see in India's defense push and how is the company placed to benefit?
Overall, the company is today confident, and it's a robust company from an operational point of view and from a financial point of view. We are cautious and optimistic both at the same time because that has been our DNA. We are aggressive, at the same time, conservative. We take that path which we think keeps us going strong into the future. From an overall point of view, from a country's point of view, the country is very strongly promoting shipbuilding as a mainstay of the Indian industry. It has never been this supportive. The government policies have never been this supportive. We are also very clearly in this whole ecosystem using the opportunities. The global major players are looking at India as a potential collaborator. Cochin Shipyard is one of the most sought-after companies by the global partners.
For us also, we are sensing that the opportunity in India is good to do these global partnerships. Overall, we feel good. The company today where it is, it looks good. Give it a five-year horizon, give it a 10-year horizon, both look good. This is what I can say. We have generally guided, as I said, this particular financial year, we can guide a top-line growth of 14 %-1 5%. Generally, we say a guidance of 10 %-1 2%, which is what we have seen in this industry. This industry has got a cyclical nature. Factoring all of those, we are confident to guide a 10 to 12-year growth prospects over the next five to 10 years or more. Would that answer your question in general?
Yeah, fair enough, sir. Just one more question. How should investors interpret the shift in revenue mix between shipbuilding and repair?
I would desist from answering that. That is something which people like you should advise them. Our job is to run the company transparently, trustfully, and with credibility. How the investors have to look into investing, we leave it to the markets.
I told you earlier that I'm new to the company. Like, you know, seeing the current momentum, where can I see you and Cochin Shipyard in the next five years?
Somewhere around double the turnover, strong company, and very strongly alive and kicking.
Fair enough, sir. Good to hear. All the best. Thank you. That's it from my side.
Thank you. Participants, please press star and one to ask a question. The next question comes from the line of Aditi Roy, an individual investor. Please go ahead. Aditi, please go ahead with your question and kindly unmute yourself in case you're on mute.
Can you self?
Yes, please go ahead, Aditi.
What is your strategy to build a recurring revenue stream beyond the project-based shipbuilding?
What is your strategy now? Can you repeat that question once again?
Yes, sir. What is your strategy to build a recurring revenue stream beyond the project-based shipbuilding?
Beyond project-based shipbuilding?
Project-based shipbuilding, revenue beyond shipbuilding.
I see. We are in shipbuilding and ship repair. Essentially, the company is in shipbuilding and ship repair. Shipbuilding and ship repair, the current method and the market is shipbuilding. We do not build to stock. We build, it's an EPC business. We scout for orders. We look at the segments that are available, and we pick up what is available. From amongst what is available, what is the best suited for us. This is in shipbuilding. Ship repair is a continually flowing market. There are always ship repair requirements. It's a business where the company is continuously in connect and touch with the major shipowners. It's a continual business where we look at requirements over the next anywhere within three months to the next year, year and a half kind of future business.
The business has got its own nuances, and we follow those nuances because essentially, this is all stemming from shipping, which is a mother industry for this.
Sir, my next question is, how significant are exports as a part of your long-term route as a strategy?
Exports are very important as part of our long-term strategy because we are focused on a specialist vessel export into Europe. We are also now, along with potential partners like HD KSOE from South Korea, looking at the merchant vessel export segment also. Exports is very important in our scheme of things. On the commercial shipbuilding side, if you have looked at our figures, you will see that we are having a defense shipbuilding part, and we are having a commercial shipbuilding part. The defense shipbuilding, as we are speaking, it is only for the Indian Navy. It is 100% Indian. The commercial shipbuilding, we will very strongly focus on the export business also.
Hello. I have a last question. What cost pressure are you facing in sale equipment or manpower, and how are they being managed?
Again, as I said, we are not building to stock. It is actually, we bid for projects, and once the project comes in, then we tap our supply chain. We are exposed only between the bidding stage until the construction phase. Over the years, we have developed a fair bit of experience to tide over such situations. Largely, at the bidding stage, we consider the current market pricing. We pass it on to the clients. That is how the market also takes it normally.
Okay, sir. That's it from my side. Thank you, sir. I am out of this.
Thank you.
Thank you.
A reminder to all participants, kindly press star and one to ask a question. The next question comes from the line of Harsh Shah from Shree PMS. Please go ahead.
Good evening, sir. Thank you for the opportunity. Sir, if you could throw some light on the government's focus on the upcoming shipbuilding clusters across the country, how will that affect the industry in general and our company, to be very specific.
The government of India is putting an emphasis on developing shipbuilding as a large industry from multiple points of view, from strategic importance point of view, from the country's industrial infrastructure point of view, the requirement to build more ships for the domestic market also in India, and from a large-scale employment generator point of view, and from a point that this is an industry which churns up a lot of ancillary industries and MSMEs. From that point of view, the government is very focused. The government is looking at this by development of multiple clusters across various Indian coastal states. The federal government, along with the states, are trying to work on this. At this stage, the initial scouting of the locations, the initial policy and support systems between the federal government and largely with the state governments, that is being presented.
Multiple interests are looking at this, but it is too early days to comment on how exactly these clusters will come up. It is very gratifying to note that most of the coastal states, Odisha, Andhra Pradesh, Maharashtra, Gujarat, and Tamil Nadu, to mention specifically, are very keenly looking at this. How it will impact the market, the expectation is that the Indian shipbuilding industry will have significant growth into the future. What opportunities and what challenges it opens up can't say for sure. For sure, one thing is clear that the shipbuilding industry is going to be much more stronger under the directions of the federal government. That is all we can say. We will see potential foreign players, collaborations, especially countries like Korea and Japan, potentially investing into some of these clusters in India.
I understand, sir. Thank you so much for the explanation. All the very best.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Rupam Jaiswal from Investwell Agents. Please go ahead.
Can you hear me, sir?
Yeah, can you talk a bit loudly?
Good morning. I wanted to know about your repair number. Like you said, in this financial year, how much are we going to be in terms of ship repairing? Last year, you did a senior aircraft carrier. Is this where it gets finished?
Last year, we had the aircraft carrier. That is why that figure was pretty good. This year, still, we are expecting to do fairly, fairly good figures.
We are expecting to do about INR 1,500 crore of ship repair revenue in FY 2026.
A little thousand, thousand things. We have the resource. If you have seen our figures, we have grown from about INR 1,000 crore to INR 1,875 crore, which was a little bit of a one-off because of the aircraft carrier repair. When compared with that, we hope to do good this year also at about INR 1,500 crore.
Okay, sir. One more thing, sir. Cochin Shipyard a Master Ship Repair Agreement with the U.S. Navy. Are we expecting any ships from them in terms of repairs?
We have the Master Ship Repair Agreement with the U.S. Navy. There are discussions ongoing, but we are probably not in a position to comment. We haven't concluded any ship repair engagement with them as of today. That is all I can say.
Are we expecting that we will receive any ships for the repairs?
We are working towards it. Being the U.S. Navy and being an MSRA, we will not be able to comment, but we are working towards it.
Okay. One more thing, sir. In terms of shipbuilding, what's the capacity in terms of how many ships can be built in terms of commercial or in terms of defense? What's the capacity and number of ships that can be built consequently?
That's an exactly difficult question to answer because the number of ships depends on the size and scale of the ship, the complexity of the vessel. We normally don't talk about a number. As we are speaking today, within the group, that is within Cochin Shipyard , Kochi unit, Udupi CSL, and Hooghly CSL, there are 75 vessels. You'll have to measure these vessels. They are of different sizes and scales. There are 75 vessels under contract. In our presentation, we've seen when we say under contract, what is physically being constructed is 37 +1 3. That is, 50 numbers are under various stages of construction. 25 are under design and engineering stage. It is very difficult to say what is your number of vessels to be constructed.
We would rather request you to look at the overall financial figure of Cochin Shipyard as an indicator of what we can actually build.
Okay, sir. One more thing, sir. In terms of commercial shipbuilding, you were very optimistic in the types of order you will be getting, and you are bidding for it also. Do we have the design and technology like for the Panamax or the SSR, those kind of ships which are more for carrying an LPG or crude oil? Do we have the technology or the design for those ships?
Typically, there are a fair bit of capabilities available in India, but it is also a matter of the market and what the market would need. What the client would need. Does he need an Indian design ship or a Cochin Shipyard design ship? Probably it's being designed for the first time, or the experience or the proof in the market is yet to come. There may be clients who may want to look at ships which are in the market for what I call proven designs or with some proven design houses. We will look at both options, but largely, we will look at teaming up with international players to build merchant vessels. There would be projects which we'll handle in India also within Cochin Shipyard 's design provost or within the design establishments in India in the private sector space.
Okay, sir. Lastly, just the last question. As far as I remember, we were building one dredger for the Dredging Corporation of India. Have we completed that project, and have we delivered it?
It is not yet completed. In fact, we are facing some challenges in the delivery timelines on that vessel. In the next one month, we are launching that vessel. That vessel is at advanced stages of construction. We'll launch the vessel, which means the vessel will be in water in the next about a month. Thereafter, it will take a few months for us to get it delivered to the client.
Okay, sir. Thank you. Thank you so much, sir.
Thank you.
Thank you. A reminder to all participants, please restrict yourselves to two questions. Thank you. The next question comes from the line of Sachin Maniar with 3P Investment Managers. Please go ahead.
Hi, sir. Good afternoon. My question, yeah, my first question is on the order book of the defense for INR 13,700 crore. Can you give the rough breakup for the larger platforms?
INR 13,700 crore , 14 vessels spread across two projects. One project is in ASW Corvette, which is about... Talk a lot about it. The balance, which is about—just a minute. Balance order.
Sir.
About INR 3,700 crore unexecuted orders. The remaining fourth out of INR 13,700 crore is a project called the Next Generation Missile Vessels. That is 62.
Okay.
Does that answer your question, Sachin?
Yeah. My second question is, sir, on the defense order pipeline, which we have shown in the PPT of almost INR 220,000 crore, can you give me a few of the rough, I mean, larger platforms you have included here in the bid stage, RFP stage, and RFI stage?
There are two projects. Just a minute. There are two projects, both about INR 10,000 crore, for which bids have been submitted. There are a few small projects about INR 1,000 crore, which are in the RFP stage. Getting into the RFI stage, the large projects are what is the MCMV, the Mine Countermeasure Vessel, the P-17 Bravo Vessel, the LPD. Those are the vessels that are in the RFI or yet to be RFPed stage.
Okay. Which is this INR 10,000 crore order, which is two projects? Which are these two projects?
There are others. One is with the Coast Guard. This is the Next Generation Fast Patrol Vessel. How many vessels? How about that? That was 18 vessels, 18 vessels for the Coast Guard. There is this Next Generation Survey Vessel for the Indian Navy.
Okay, sir. Sure, sir. Thanks. Thanks a lot.
Thank you.
Thank you. Participants, please restrict yourselves to one question. The next question comes from the line of Harsh from Toro Wealth Managers LLP. Please go ahead.
Yes, sir. Thank you for the opportunity. I wanted to understand that in FY 2024, we had higher EBITDA margins of almost 24%. Right now, we are close to 19% even in last year, and we are expecting it to be lower because of changing product mix. Is there a change in mix versus FY 2024 as well when we had clocked higher margins? See, the combined EBITDA for Q1 is around 28%. Hi, sir. Hello? Hello? Hello?
Hello. Yes.
EBITDA for the company for the Q1 is 28%.
Correct. It's 24% for Q1, but we are guiding that it would be lower, right, for the entire year.
Yeah, correct, correct.
I'm just trying to compare. At a blended level, we would be lower, say, around 20%- 22% versus blended. If I have to take a number from the FY 2024 numbers, I was just trying to understand that was there a difference in the product mix with these couple of years before as well? Because last year, you mentioned that there was this order which was there, which should not be this year. I just want to try to understand, is the product mix changing across the years, including the margins?
Yeah. See, the year before, we had the aircraft carrier building. Last year, we had the aircraft carrier repair also. The margin was slightly higher side. This year, we don't have such large projects. The EBITDA will be around 20%. That's what we guide overall.
Okay. Do we expect to get these aircraft orders again in the future?
Hello.
The ship repair ones will come. It's a cycle through which the ship repair ones will come. The shipbuilding, as we discussed, the next aircraft carrier, we are not in a position to discuss at this stage because we hope it will come, but timelines, we are not in a position to come.
Okay, thank you.
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Ms. Chandni.
I'll move to the next slide.
For us.
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Thank you very much.
Ladies and gentlemen, on behalf of Kirin Advisors Private Limited . that conducted this conference, thank you for joining us, and you may now disconnect.