Mazagon Dock gains 3% on securing an order worth ₹1486 crore from ONGC

Shares of Mazagon Dock Shipbuilders Ltd gained over 3% to trade at an intraday high of ₹4,544 per share on the NSE on Monday, September 9, after the company announced securing a contract from Oil and Natural Gas Corporation Limited (ONGC) for a pipeline replacement project.

Mazagon Dock informed the exchanges, in a filing on September 6, that it has been awarded a contract from ONGC for a subsea pipeline replacement project (Pipeline Replacement Project 8 Group A).

The company said that the project has been awarded on an Engineering Procurement and Construction (EPC) reimbursable basis. The public sector company also said that the size of the order is ₹1486.4 crore (including GST at 12%). The order will be completed by February 28, 2026.

On August 14, the company informed the exchanges about its financial results for the quarter ended June 30, 2024. The public sector company’s consolidated revenue from operations for the June quarter of FY25 grew over 8% to ₹2,357.02 crore against ₹2,172.76 crore in the June quarter of FY24. Sequentially, the company’s revenue from operations also decreased more than 24% from ₹3,103.65 crore in the March quarter of FY24.

In Q1FY25, the company’s consolidated profit-after-tax increased more than 121% to ₹696.1 crore compared to ₹314.34 crore in the corresponding quarter of the preceding fiscal. The company’s profit-after-tax also increased by nearly 5% from ₹662.97 crore in the March quarter of FY24.

Shares of Mazagon Dock Shipbuilders have surged nearly 130% in the last one year. The stock has given a Year-To-Date (YTD) return of more than 92% and 113% in the past six months. In the last one month the stock has declined more than 7%.

Mazagon Dock Shipbuilders’ shares traded at ₹4,477.25 apiece, up by 1.75%, on the NSE at 09:17 am.