CSL becomes debt-free after redemption of Rs130cr tax-free bond
CL Jose
KOCHI: Cochin Shipyard Ltd (CSL), the largest shipbuilding and maintenance facility in India, scouting for a global operating partner for its soon-to-be-operational International Ship Repair Facility (ISRF).
According to informed sources, CSL is finalising formalities to float a global tender to select the operational partner, and in all likelihood, the tender will be out within a few weeks.
CSL now debt-free
In another development, the chairman and managing director of CSL, Madhu S Nair, stated that the ship-building major, which flaunts a Rs22,000 crore order book, has turned into an almost debt-free company following the redemption of the Rs130 crore tax-free bond recently.
The CSL sources confirmed that ISRF will be operational by August this year. In January this year, Prime Minister, Narendra Modi dedicated ISRF to the nation.
Project cost
While the total project cost for ISRF has been estimated to be Rs1,799 crore, CSL has already spent Rs1,312.49 crore towards the facility, which will enjoy the distinction of being the world’s ‘first stepped Dry-dock’.
A ‘first stepped dry dock’ refers to a specific type of dry dock that has steps or levels, allowing ships of different sizes to be docked and worked on simultaneously.
CSL is eager to view the new global operational partner as more than just a contractor for the ISRF; they aim to establish a collaborative and strategic partnership.
“The new partner should be an entity that is capable of positioning ISRF as the best-in-class facility globally,” the CSL CMD said while interacting with analysts.
CSL also wants the new partner to bring in their clients to ISRF as well as help leverage the ecosystem. “I would want the global operator to help establish an efficient supply chain and service provider chain like what we get to see in Singapore and the Middle East,” Nair added.
ISRF facility, once operational, can cater to 82 vessels of size less than 130 metres in length in a year.
CSL performance
CSL has earned a standalone net profit of Rs264.67 crore for the fourth quarter (Q4) against Rs47.34 crore for the same period a year ago, representing a whopping 459 per cent growth.
For the full year (FY24), while the standalone net profit surged 143 per cent, from Rs334.49 crore to Rs813.10 crore, the consolidated profit increased from Rs304.71 crore to Rs783.28 crore.
The total income logged by the standalone operations of CSL was to the tune of Rs3,952.66 crore for FY24 against Rs2,536.95 crore in the earlier year, posting a growth of 56 pc year on year. On the consolidated level, the growth has been 61 per cent, from Rs2,571.57 crore to Rs4,140.63 crore.
