Mazagon Dock Shipbuilders (MAZDOCK) Q4 14/15 earnings summary

Executive summary

• FY 2014-15 set records for Value of Production (VOP) at ₹3,592.60 crore and PBT at ₹746 crore; performance against Ministry of Defence MoU targets was expected to be rated “Excellent”.

• VOP rose 25.37% YoY and PBT rose 26.96% YoY, reflecting higher submarine production and progress across major naval projects.

Financial highlights

• Turnover/VOP was ₹3,592.60 crore vs ₹2,865.51 crore; total revenue was ₹4,181.48 crore vs ₹3,499.37 crore.

• PBT was ₹746 crore vs ₹587.57 crore; net profit was ₹491.59 crore vs ₹397.61 crore; EPS was ₹246.78 vs ₹199.60.

• Other income was ₹562.57 crore, including ₹518.90 crore net interest on deposits; finance costs were ₹3 lakh.

• Operating cash flow was ₹2,070.57 lakh, reversing from ₹11,572.7 lakh used in FY 2013-14; cash and cash equivalents ended at ₹76,182.8 lakh.

Outlook and guidance

• Higher VOP was envisaged as P-15B launches and P-17A production activities ramped up; focus remained on contractual delivery timelines and indigenisation.

• The first P-75 submarine was scheduled for commissioning in Sep 2016, with subsequent submarines planned at nine-month intervals.

• A second submarine assembly line at Alcock Yard was expected to be completed in H2 FY 2015-16, supporting phased deliveries and potential future orders.

• Plans included pursuing approximately 16 acres of waterfront land to expand workshops, slipways and jetties; export of Scorpene pressure-hull sections was also to be explored.