Mazagon Dock Shipbuilders (MAZDOCK) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue of ₹3,144 crore in Q3 FY24-25, with profit after tax of ₹768 crore, reflecting robust year-over-year and sequential growth.

• Reported strong financial results for Q3 FY2025, with consistent performance and healthy margins driven by project execution and reversal of provisions.

• Delivered key naval projects, including the fourth P15B Destroyer and first P17A Stealth Frigate, and participated in a historic tri-commissioning of three frontline combatants for the Indian Navy.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved by the Board on February 7, 2025.

• Secured a major contract for Air Independent Propulsion Plug integration, reinforcing leadership in indigenous defense manufacturing.

Financial highlights

• Standalone Q3 FY24-25 revenue from operations: ₹3,144 crore (up from ₹2,631 crore YoY); PAT: ₹768 crore (up from ₹564 crore YoY); EBITDA: ₹1,104 crore.

• Consolidated Q3 FY24-25 revenue: ₹3,144 crore; PAT: ₹786 crore; EBITDA: ₹1,104 crore; operating margin at 25%.

• Significant profit contribution from Project 15 Bravo and reversal of INR 142 crore provision for Submarine 5 in the quarter.

• Order book as of 31st December 2024 stands at INR 34,787 crore, reflecting recent deliveries.

• Consolidated net profit for Q3 FY25 was ₹80,704 lakhs, compared to ₹62,678 lakhs in Q3 FY24.

Outlook and guidance

• Healthy order book of ₹34,787 crore as of December 31, 2024, with significant pending deliveries across destroyers, frigates, submarines, and offshore vessels.

• Normalized EBIT margin for the industry projected at 12% to 15%, but current margins expected to remain higher in FY2026 due to legacy orders.

• No anticipated decline in revenue for next year; marginal growth possible, but not projected at 20%.

• Ongoing focus on indigenization, capacity expansion, and timely project execution to sustain growth.

• Execution of existing order book expected over the next two to two and a half years.