Mazagon Dock Shipbuilders (MAZDOCK) Q4 15/16 earnings summary

Executive summary

• FY 2015-16 delivered record Value of Production (VOP) of ₹4,121.65 crore, PBT of ₹957.33 crore and PAT of ₹637.82 crore; each was the highest reported to date.

• Operations centered on Indian Navy programmes: seven destroyers, four frigates and six Scorpene-class submarines were in design or construction.

Financial highlights

• VOP was ₹4,121.65 crore, up 14.73% YoY from ₹3,592.60 crore; PBT was ₹957.33 crore, up 28.33% from ₹746.00 crore.

• Standalone PAT was ₹637.82 crore versus ₹491.59 crore; EPS was ₹320.19 versus ₹246.78.

• Revenue from operations was ₹4,141.83 crore and other income ₹743.53 crore; total revenue reached ₹4,885.36 crore.

• Net worth rose to ₹2,827.42 crore from ₹2,442.51 crore; cash and cash equivalents were ₹880.62 crore at 31 Mar 2016.

• Consolidated PAT was ₹664.42 crore, including ₹34.02 crore share of associate profit; consolidated EPS was ₹333.54.

Outlook and guidance

• Substantial VOP growth was envisaged as destroyers launch and frigate production activities commence; no numerical forecast was stated.

• Priorities included timely delivery, infrastructure and technology upgrades, outsourcing of mega-blocks, and using private-sector capacity for concurrent projects.

• Preliminary studies for additional submarines were progressing; expanded facilities and submarine experience were positioned to support potential new orders.

• Future ship indigenous content was expected to reach 72%-75%; submarine indigenisation target was 47% of maximum possible indigenisable content.