Mazagon Dock Shipbuilders’ shares rise 1% after firm discloses massive order win from ONGC

Mazagon Dock Shipbuilders said in an exchange filing that the firm has received a contract from ONGC for the fabrication and installation of wellhead platforms and associated pipeline project on engineering, procurement and construction (EPC) reimbursable basis.

The project has a ceiling price of over ₹4,676.32 crore. The project has to be executed by May 31, 2026.

In June, the Ministry of Finance elevated Mazagon Dock Shipbuilders to Navratna category. The firm is now the 21st Navratna central public sector enterprise (CPSE) in the country, third in Defence PSUs and the first shipyard to achieve this status. For the fiscal year 2023-24, the company has posted a consolidated annual turnover of ₹9,467 crore and a net profit of ₹1,845 crore.

During the fourth quarter of fiscal year 2024, revenue from operations rose 49.30% to ₹3,104 crore while total revenue rose 50.74% to ₹3,452 crore.

Earnings before interest, tax, depreciation, and amortisation (EBITDA ) rose 107% to ₹873 crore while net profit rose 103.37% to ₹663 crore during the quarter. EBTIDA margin improved to 16% during the quarter compared to 9% in the same period a year ago.

The board of directors recommended a final dividend of ₹12.11 per equity share for the FY24. This is in addition to the interim dividend of ₹15.34 per equity share paid for the year by the firm.

The management believes the firm is set to register its highest revenues in the fiscal year 2025. “As far as the current order book is concerned, FY25, clearly we are poised for the, maybe the highest revenue. Yeah, we will be delivering one frigate and one destroyer. Because we are targeting three deliveries during this year, one destroyer, one frigate, as well as one submarine,” said Sanjeev Singhal, chairman and managing director at Mazagon Dock Shipbuilders during the earnings call.

Shares of the firm have risen over 118% since the beginning of the year. The stock has gained over 167% in the last one year.