Mazagon Dock Shipbuilders (MAZDOCK) Q4 13/14 earnings summary

Executive summary

• FY14 value of production reached a record ₹2,865.51 crore; operating profit was ₹311.48 crore and PBT was ₹587.57 crore. The board recommended a ₹100 crore dividend, equal to 50.2% of equity share capital.

• Modernized facilities began supporting higher throughput and integrated construction; major naval ship and submarine programmes remained in progress.

Financial highlights

• Value of production rose to ₹2,865.51 crore from ₹2,290.64 crore; PBT fell to ₹587.57 crore from ₹638.89 crore.

• Net profit after tax was ₹397.61 crore versus ₹412.72 crore; EPS was ₹199.60 versus ₹207.19.

• Total revenue was ₹3,499.37 crore, including ₹612.65 crore of other income; total expenses were ₹2,911.66 crore.

• Operating cash flow was negative ₹1,160.67 crore, primarily reflecting a ₹3,656.41 crore increase in inventories; cash and cash equivalents closed at ₹523.95 crore.

Outlook and guidance

• Priorities include meeting Indian Navy requirements and project timelines, advancing indigenization, and leveraging modernized facilities to increase capacity and reduce build periods.

• A Project 17A multi-mission frigate contract was expected to be signed during FY15; the outlook also cited Navy plans for 30–35 ships over the next decade.

• Capacity expansion depended partly on acquiring additional Mumbai Port Trust land and appointing a know-how provider for technology upgrades and capacity enhancement.