Mazagon Dock Shipbuilders Q2 Results: Profit Up 76%, Beats Estimates

• Revenue up 51% to Rs 2,757 crore (Bloomberg estimate: Rs 2,148 crore).

• Ebitda up 189% to Rs 511 crore (Estimate: Rs 364 crore).

• Margin expands to 18.5% versus 9.7% (Estimate: 16.9%).

• Net profit up 76% to Rs 585 crore (Estimate: Rs 489 crore).

• Total order book as of September 2024 stood at Rs 39,872 crore.

The board of directors declared an interim dividend of Rs 23.19 per share.

• Two deliveries planned before Dec. 31, 2024: One submarine and potentially a destroyer ahead of schedule.

• Delivery of a second frigate may slip to the next financial year.

• No reversal of liquidated damages occurred in the second quarter.

• Mazagon Dock hopes for reversal of approximately Rs 300 crore in the third quarter.

• Potential order pipeline includes additional Scorpene submarines (three units, next-generation destroyers, Project 17 Bravo frigates, and an air-independent propulsion plug retrofit for existing Scorpenes.

• ONGC offshore project: Rs 7,000–8,000 crore, expected execution over two years.

• Current capacity can handle 11 submarines and 10 warships.

• Currently executing six large platforms and some smaller vessels.

• Capital expenditure plans of Rs 5,000 crore over the next couple of years.

• Additional capex to double capacity and allow construction of larger vessels.

• Expects revenue growth of 10–12% year-over-year.

• Expects normalised profit-before-tax margin of 12–15% for new projects

• Expects to maintain margins in the second half of the fiscal similar to H1 FY25.