Mazagon Dock Shipbuilders (MAZDOCK) Q2 24/25 earnings summary

Executive summary

• Consistent financial performance in Q2 FY25, with strong project execution and delivery schedules for major naval platforms, and a robust order book of ₹39,872 crore as of September 30, 2024.

• Delivered 802 vessels since 1960, including 28 warships and 7 submarines, and holds Navratna status.

• Consistent profitability for over 20 years, with zero debt and regular dividend payouts.

• Unaudited standalone and consolidated financial results for the quarter and six months ended September 30, 2024, were approved by the Board on November 5, 2024.

• No reversal of liquidated damages in Q2; potential reversal of around INR 300 crores expected in Q3 pending ministry decisions.

Financial highlights

• Standalone Q2 FY25 revenue from operations: ₹3,022 crore, up from ₹2,628 crore in Q2 FY24; consolidated Q2 FY25 revenue: ₹2,75,683 lakhs, up from ₹1,82,770 lakhs in Q2 FY24.

• Standalone Q2 FY25 PAT: ₹751 crore, up from ₹564 crore in Q2 FY24; consolidated Q2 FY25 net profit: ₹58,508 lakhs, up from ₹30,387 lakhs in Q2 FY24.

• Q2 margins remain strong, with standalone operating margin at 26.21% and consolidated H1 FY25 operating margin at 21.59%.

• Cash balance stands at approximately INR 4,000 crores, primarily in liquid deposits with up to one-year maturity.

• Declared highest-ever interim dividend of ₹467.72 crore (₹23.19/share) for FY25.

Outlook and guidance

• Revenue expected to be sustained or grow slightly over the next couple of years, supported by ongoing Coast Guard, export, and ONGC offshore projects.

• H2 margins expected to be similar to H1, with normalization to 12%-15% PBT margin for new projects in the future.

• CapEx of INR 5,000 crores planned over the next few years to expand capacity and address future order inflows.