Mazagon Dock To Add Orders Worth Rs 2,000 Crore In Q3, Says MD

Mazagon Dock Shipbuilders Ltd. expects to add orders worth Rs 2,000 crore in the December quarter, according to Sanjeev Singhal, chairman and managing director of the company.

In October, the company received a small contract of one cadet training ship with Indian coast guard, which works out to around Rs 310 crore, Singhal told BQ Prime's Sajeet Manghat.

By the end of this month, the warship and submarine manufacturer also expects to finalise another project for offshore petrol vessels, which is expected to be around Rs 1,400 crore, Singhal said.

He also expects a positive development on one small value export order to form up in the next two months. "This would be providing us a foothold in the export market segment, which we have been trying for quite some time but have not been able to succeed," said Singhal.

As of September 2023, the company's order book stood at Rs 37,500 crore, said Singhal.

The company's net profit jumped 55.6% year-on-year to Rs 333 crore during the second quarter. Its revenue rose 7.4% to Rs 1,828 crore.

Mazagon Dock Shipbuilders Q2 FY24 Highlights (Consolidated, YoY)

• Revenue up 7.4% at Rs 1,828 crore vs Rs 1,702 crore.

• Ebitda up 51.33% at Rs 176 crore vs Rs 117 crore.

• Margin up 279 basis points at 9.64% vs 6.84%.

• Reported profit up 55.6% to Rs 333 crore vs Rs 214 crore.

In the reporting quarter, profitability was driven by a refund of liquidated damages with respect to one of the Scorpion submarines, according to Singhal.

"We are expecting a similar kind of refund which may materialise this quarter or next quarter, which will have a positive impact on the profitability," he said. For the previous two boats, the amount was in the range of Rs 160-170 crore each.

Watch the full conversation here: