Mazagon Dock Shipbuilders (MAZDOCK) Q4 12/13 earnings summary

Executive summary

• FY2012-13 value of production (VOP) was ₹2,290.64 crore and PBT ₹638.89 crore; the MOU rating was expected to reach “Excellent,” versus “Very Good” in each of the prior two years.

• Delivery of Sahyadri completed the three-ship Project 17 Shivalik-class frigate series; a high-value multi-support vessel was delivered to Cotemar, Mexico.

Financial highlights

• VOP fell to ₹2,290.64 crore from ₹2,523.69 crore in FY2011-12; PBT declined to ₹638.89 crore from ₹691.78 crore.

• Net profit after tax was ₹412.72 crore, down from ₹494.31 crore; EPS was ₹207.19 versus ₹248.15.

• Total revenue was ₹2,860.30 crore, including ₹528.91 crore of other income; exceptional items were nil, and prior-period adjustments were a ₹23.26 lakh expense.

• Operating cash flow was ₹393.54 crore versus ₹293.83 crore in FY2011-12; closing cash and cash equivalents were ₹600.48 crore.

Outlook and guidance

• Growth in VOP was envisaged from Scorpene equipment deliveries, Project 15B production and anticipated Project 17A orders; seven Project 17A frigates were in the pipeline for construction with GRSE.

• Modernization facilities, including module workshops and a cradle assembly shop, were expected to be completed by end-2013, supporting shorter build periods and additional assembly lines.

• The second multi-support vessel was in progress, with delivery expected by end-2013; adjacent land acquisition was being pursued to expand capacity.