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

Executive summary

• Reported highest-ever quarterly revenue of Rs. 3,144 crore and profit after tax of Rs. 768 crore in Q3 FY2025, reflecting robust operational performance and healthy margins driven by project execution and reversal of provisions.

• Delivered major naval vessels, including the fourth P15B Destroyer 'SURAT' and the first P17A Stealth Frigate 'NILGIRI' to the Indian Navy in December 2024.

• Historic tri-commissioning of three frontline combatants (INS Nilgiri, INS Surat, INS Vaghsheer) on January 15, 2025, underscoring advanced shipbuilding capabilities.

• 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.

Financial highlights

• Consolidated Q3 FY25 revenue from operations was ₹314,362 lakhs, up from ₹236,247 lakhs in Q3 FY24; PAT was ₹80,704 lakhs, up from ₹62,678 lakhs year-over-year.

• Standalone Q3 FY25 revenue was Rs. 3,144 crore; PAT was Rs. 768 crore, with operating margin improving to 25% from 18% year-over-year.

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

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

• Basic and diluted EPS (consolidated) for Q3 FY25 was ₹20.01, up from ₹15.54 in Q3 FY24.

Outlook and guidance

• Strong order book of Rs. 34,787 crore as of December 31, 2024, with multiple major defense and commercial projects in progress.

• 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%.

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

• Ongoing focus on indigenization, timely delivery, and expanding capabilities in advanced naval platforms.