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Delay in projects to impact profitability in FY21, says Cochin Shipyard

There will not be any additional impact due to liquidated damages for delay in running projects as it has already invoked Force Majeure clause available in all the contracts

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With effect from May 6, 2020, the company started its operations at the main unit at Kochi with entire permanent workforce.

Gireesh Babu Chennai

3 min read Last Updated : May 26 2020 | 1:43 AM IST

Cochin Shipyard Ltd has said that the it does not foresee any liquidity challenges to meet its supplier obligations and the ongoing capex will not be impacted on account of liquidity in the backdrop of Covid-19. Delay in running projects owing to Covid-19 pandemic will have an adverse impact on financial performance and profitability of the company during FY20-21 but the assessment of the impact will be possible only after stabilisation of operations in the yard.

There will not be any additional impact due to liquidated damages for delay in running projects as it has already invoked Force Majeure clause

Topics : Coronavirus Cochin Shipyard Limited NCLT

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