Mazagon Dock Shares Jump After Q3 Results; Net Profit Surges 77%

Mazagon Dock Shipbuilders Ltd, a leading player in shipbuilding and repair, reported impressive financial results for the third quarter of fiscal year 2023-24 showcasing growth across key financial metrics.

Q3 Results Snapshots

The company's consolidated net profit surged by 77% YoY reaching ₹626.8 crore for the quarter ended December 2023 compared to ₹354 crore in the corresponding quarter of the previous year. Revenue from operations surged 30% YoY, amounting to ₹2,362.5 crore as opposed to ₹1,815.9 crore in the corresponding period of the previous year.

Operating profit (EBITDA) jumped by 82% YoY to ₹539 crore in the quarter, with margins improving to 22.8%. Total expenses increased moderately by 19.79% to ₹1,844.8 crore in Q3 FY24 compared to ₹1,540 crore in Q3 FY23. Notably, the cost of materials consumed saw a YoY increase of 30.97% to ₹987.24 crore.

Mazagon Dock remains actively engaged in building and repairing ships, submarines, various types of vessels and related engineering products for its customers. As of December 2023, the company's order book stood at an impressive ₹38,389 crore, indicating a strong pipeline of future revenue streams.

In December, Mazagon Dock secured a contract with ONGC for the part replacement of a pipeline project worth ₹1,145 crore. The project entails installing approximately 44.4 km of subsea pipelines divided into 19 segments and is scheduled for completion by May 2024. This contract highlights the company's continued focus on securing strategic projects and expanding its business portfolio.

After the q3 result on 13th February shares of Mazagon Dock closed 1.10% lower at ₹2158 on the NSE. Over the past year the stock has delivered an impressive return of 202%, reflecting strong investor confidence in the company's growth trajectory and future prospects. Mazagon Dock's stock faced a decline of 8.07% over the past month. However over the past six months, it showed anincrease of 15.83%. Year to date, the stock has seen a slight decrease of 5.75%.

Final Words

Mazagon Dock Shipbuilders Ltd's stellar performance in Q3 FY23-24 highlights its resilience, operational excellence and commitment to delivering value to its stakeholders. With a strong order book and strategic projects in the pipeline, the company is well positioned for sustained growth.