CSL pays dividend of Rs 16.87 cr to Union govt

The Cochin Shipyard (CSL), the largest ship building and repair yard of India, paid a dividend of Rs 16.87 crore to the Union Government today.

The dividend cheques were handed over to Union Shipping minsiter, G K Vasan by K Subramaniam, Director (Operations) & Officiating Chairman and Managing Director of the yard, a CSL press release here said.

The dividend was declared at the 38th Annual General Meeting of the company held on September 9 and consists of Re 1 per Equity Share on the 11,32,80,000 fully paid equity shares of Rs 10 each amounting to Rs 11.32 crore and Rs 70 per 7,91,420 fully paid 7 per cent Non Cumulative Preference Shares of Rs 1,000 each amounting to Rs 5.54 Crores. This is the second-consecutive year that the company is paying dividend to the government of India.

The company had paid a dividend of Rs 19.66 crore in the year 2008-09. The dividend amount is lesser this year as the company had redeemed preference shares amounting to Rs 40 crores in September 2009.

The yard has also contributed handsomely to the national exchequer in 2009-10 by way of value added tax, Income Tax, Fringe Benefit Tax, Excise Duty, Customs Duty and Service Tax amounting to Rs 148 crore.

The yard had been able to increase its turnover three times from Rs 373 crore in 2005-06 to Rs 1,248 crore in 2009-10 (Rs 1,256 crore in 2008-09). During the same period the company’s Profit Before Tax increased by 13 times from Rs 25 crore to Rs 331 crore (Rs 248 crore in 2008-09) and  the Net Profit by 12 times i.e. from Rs 18 crore to Rs 223 crore (Rs 160 crore in 2008-09).

The year 2010-11 has commenced on a positive note for CSL. The yard has delivered five Offshore Supply Vessels to various international owners during the current year. The yard has also concluded a new building contract for 4 firm + 4 optional Offshore Supply Vessels for an international owner.

CSL is also on the verge of concluding a major contract for 20 Fast Patrol Vessels for Indian Coast Guard. Presently the yard is constructing 15 Offshore Supply Vessels for domestic and  international owners out of which  only four are for the domestic owners, The Shipping Corporation of India. Besides, the yard is also constructing the prestigious ‘Indigenous Aircraft Carrier’ for the Indian Navy.