Colombo Dockyard PLC has returned to profit, reporting earnings of Rs 86.28 million for the quarter ended June 30, 2026, a turnaround from the Rs 808.36 million loss recorded in the same period a year earlier, EconomyNext reported.
The group posted earnings of 22 cents per share for the three months, against a loss per share of Rs 3.51 in the corresponding quarter of 2025.
Revenue did not drive the recovery. Group turnover fell 6.8 percent to Rs 5.84 billion from Rs 6.27 billion, with the Ship Repairing segment contributing Rs 3.95 billion while Shipbuilding revenue slipped to Rs 1.05 billion.
The improvement came instead from margins and financing costs. Gross profit surged 250.7 percent to Rs 1.21 billion, supported by a 63.8 percent reduction in net finance expenses, which fell to Rs 188.20 million from Rs 519.98 million a year earlier.
The segment picture shows where the turnaround came from. Ship repairing revenue climbed 48.4 percent and its gross-profit result more than doubled to Rs 1.46 billion, Daily Mirror reported, offsetting continued weakness in shipbuilding, where revenue fell 61.6 percent and the segment stayed loss-making, though its loss narrowed to Rs 378.8 million from Rs 899.6 million.
Cost of sales fell 21.8 percent, lifting the gross margin to 20.7 percent from 5.5 percent a year earlier.
The group’s total assets stood at Rs 42.58 billion as at June 30. Stated capital rose to Rs 13.65 billion after the full utilisation of Rs 12.93 billion raised through a rights issue, proceeds directed primarily at settling loans — a move reflected in the sharply lower finance cost line. Total equity climbed to Rs 15.59 billion from Rs 4.07 billion a year earlier.
Cash flow remained under pressure. The group recorded a net decrease in cash and cash equivalents of Rs 481.80 million for the quarter, with net cash used in operating activities of Rs 678.09 million. The outflow reflected a Rs 3.43 billion increase in trade and other receivables, partly offset by a Rs 2.35 billion rise in payables. Colombo Dockyard closed June with Rs 8.48 billion in cash, against interest-bearing borrowings of Rs 14.79 billion.
The company has changed its financial year end from December to March 31 to align with its new parent, India’s Mazagon Dock Shipbuilders Limited, which acquired a controlling stake in the Sri Lankan shipyard earlier this year. Management noted that Rs 42.37 million in interest costs relating to shipbuilding projects were charged to cost of sales during the quarter. The results are subject to audit.
Colombo Dockyard shares closed up 0.85 percent at Rs 119.00.
