CSL: 5th Consecutive Dividend Paid

Cochin Shipyard Limited (CSL), a Schedule B Miniratna PSU under the Ministry of Shipping, has paid a dividend of Rs 16.99 crores to Government of India. The company is paying dividend for the fifth consecutive year. The dividend cheque was handed over to the Minister of Shipping, Shri G K Vasan by CMD, CSL, Shri K Subramaniam.

The Secretary, Ministry of Shipping, Dr. Vishwapati Trivedi and other senior officials of the Ministry were also present on the occasion.

The dividend consists of Rs 1.5 per Equity Share on the 11,32,80,000 fully paid equity shares of Rs 10 each. In addition, the yard has also contributed Rs 158 crores to the exchequer by way of Value Added Tax, Income Tax, Fringe Benefit Tax, Excise Duty, Customs Duty and Service Tax during the year 2012-13.

The performance of Cochin Shipyard had been consistently impressive in the last several years despite a very challenging business environment in the Shipbuilding / Shiprepair and Shipping sector. The highlight of this year’s performance of CSL was the launching of the first indigenously built Aircraft Carrier “Vikrant”. This most prestigious ship ever built for the Indian Navy was launched on 12 August 2013 by Smt. Elizabeth Antony at a function which was attended by Defence Minister Shri A. K. Antony and Shipping Minister Shri G. K. Vasan. Cochin Shipyard’s turnover has increased five folds from Rs. 373 crores in 2005-06 to Rs. 1554 crores in 2012-13. Likewise the Net Profits have doubled during the period from Rs. 94 crores to Rs. 185 crores.

With a net worth of Rs. 1200 crores, the present book value of the company’s shares of Rs. 10 is Rs. 105. In order to maintain the growth momentum, CSL has identified projects for expansion in the short, medium and long term. The yard has identified considerable potential in the shiprepair business, owing to lack of commensurate facilities in the country. The yard has taken land on lease in the Cochin Port Trust (CoPT) premises for setting up of an International Shiprepair Facility with Shiplift system. The capital cost for the facility is Rs. 487 crores and is expected to take 5 years for setting up. Government has approved the issue of tax free bonds by CSL to raise Rs. 250 crores during this fiscal. The yard is also exploring the possibility of setting up a bigger drydock in CSL for taking up building of bigger ships. The funding for the same will be through IPO/ Internal resources.

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Press Release, October 24, 2013