Mazagon Dock Shipbuilders (MAZDOCK) Q4 16/17 earnings summary

Executive summary

• FY2016-17 value of production was ₹3,523.67 crore and PBT was ₹847.72 crore; both declined YoY, while major ship and submarine programs advanced.

• MoU performance was expected to rate “Very Good”; the Board recommended a ₹165.41 crore dividend, including ₹100 crore interim dividend.

Financial highlights

• Contract revenue was ₹3,523.67 crore vs ₹4,106.22 crore in FY2015-16; PBT was ₹847.72 crore vs ₹929.32 crore, down 8.78% YoY.

• Standalone PAT was ₹525.12 crore vs ₹575.23 crore; basic and diluted EPS was ₹214.25 vs ₹228.31, with prior-year weighted shares adjusted for the 1:4 bonus issue.

• Consolidated PBT was ₹838.94 crore and consolidated profit for the year, including associate earnings, was ₹585.10 crore vs ₹595.55 crore.

• Operating cash flow was a ₹1,009.24 crore outflow vs ₹287.71 crore inflow; cash and cash equivalents closed at ₹142.88 crore vs ₹897.77 crore.

Outlook and guidance

• Current order book comprised four frigates, four destroyers and six Scorpene submarines; delivery within contractual timelines was the priority, supported by project reviews and corrective action.

• Plans included a floating dry dock for submarine launches and ship refits, export-market development, and possible shipbuilding-facility development at Nhava.

• Installed capacity could handle ten frigate/destroyer-size warships and eleven submarines across two assembly lines; spare capacity was expected as existing orders progressed toward completion.

• Outsourcing to domestic private shipyards was underway and expected to expand as multiple projects run concurrently; an international marketing team was formed to pursue warship and commercial-vessel exports.