Public sector Cochin Shipyard has posted a 44 per cent jump in consolidated profit to Rs 137.52 crore for the quarter ended March 31, 2020. The company had clocked a profit of Rs 95.44 crore in the corresponding period of fiscal 2018-19, it said in a regulatory filing to the BSE on Saturday night.
Total consolidated income rose to Rs 861.07 crore during the quarter under review as against Rs 851.26 crore earlier. Total consolidated expenses declined to Rs 677.77 crore from Rs 692.11 crore in the same quarter of the preceding financial year.
For the full fiscal 2019-20, the company recorded a consolidated profit of Rs 632 crore as against Rs 477 crore in 2018-19. The company also said it has acquired additional 26 per cent equity shares of Hooghly Cochin Shipyard Limited (HCSL).
Prior to this, it was holding 74 per cent equity stake in HCSL. With this acquisition, HCSL has become a wholly-owned subsidiary of Cochin Shipyard Ltd. About the coronavirus pandemic, it said the group has considered all possible effects that may result from COVID-19 on the carrying amounts of financials assets, inventory, receivables, advances, property plant and equipment and intangibles as well as liabilities accrued.
"The Group has looked at the possible future uncertainties in the economic conditions because of the pandemic from internal and external information such as the current contracts, financial strength of the supply chains and customers etc.
"Based on such information and based on current estimates the Group expects the carrying amount of these assets will be recovered and there is no significant impact on liabilities accrued," it said.
The company's operations were temporarily disrupted from March 23 to May 5, it said, adding the work has resumed on a reduced scale.
"However, the Group expects to ramp up the operations significantly in the ensuing quarters. The impact of COVID-19 may differ from that estimated as at the date of approval of these financial statements and the Group will continue to closely monitor any material changes to future economic conditions," it said.
