Mazagon Dock Q2 Results: Net profit jumps 76% YoY to ₹585 crore; revenue surges 51%

The company reported a profit of ₹332.88 crore in the year-ago period. 

Revenue from operations came in at ₹2,756.83 crore, up 50.8% against ₹1,827.70 crore logged in the year-ago period. 

Basic and diluted earnings per share (EPS) stood at ₹29.01 against ₹16.50 in the September 2023 quarter. 

Total income of the company increased by 44.8% to ₹3,011.11 crore from ₹2,079.18 crore registered in the corresponding quarter of the previous fiscal.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter under review increased to ₹510 crore from ₹176 crore registered in the year-ago quarter.

EBITDA margin more than doubled on a year-on-year basis to 18.5% from 9.6% in the September quarter last year.

Mazagon Dock Shipbuilders Limited (MDL) is a public sector undertaking (PSU) that builds and repairs ships, submarines, and other vessels for the Indian Navy and other customers. 

MDL is located in Mazagaon, Mumbai, and is managed by the Ministry of Defence, and the Government of India holds an 84.83% stake.

It was incorporated as a private limited company in 1934. After its takeover by the government in 1960, Mazagon Dock grew rapidly to become the premier warshipbuilding yard in India, producing warships for the Navy and offshore structures for the Bombay High, as per the company's website. 

Shares of the company after the result announcement were trading nearly 7% higher at ₹4,304.05 apiece on the BSE. 

The market capitalisation (m-cap) of the PSU was ₹86,928.39 crore on the BSE. 

On a year-to-date (YTD) basis, shares of Mazagon Dock Shipbuilders have rallied over 87%, while in the past 12 months, the stock price has jumped 120%. 

Mazagon Dock: Stock split and dividend announcement

On October 22, the PSU announced that its board of directors had approved splitting the company’s stock in two. Additionally, the board approved an interim dividend of ₹23.19 per share.

While the company has issued dividends in the past, this was the first time that it was participating in a stock split.

The company had declared a final dividend of ₹12.11 apiece for the financial year 2024 earlier this year.

October 30 was the record date for the dividend payout.