Mazagon Dock Shipbuilders (MAZDOCK) Q4 19/20 earnings summary

Executive summary

• FY20 revenue from operations rose 7.88% YoY to Rs 4,977.65 crore; operating profit was Rs 190.01 crore versus Rs 187.30 crore. PAT declined to Rs 415.02 crore, mainly from lower other income and a one-time deferred-tax impact.

• Operations and deliveries progressed despite COVID-related disruption in the final 10 days of FY20; the lockdown also affected Q1 FY21 activity.

Financial highlights

• Revenue from operations was Rs 4,977.65 crore versus Rs 4,613.95 crore; PBT before exceptional items was Rs 779.01 crore versus Rs 825.01 crore.

• Standalone PAT was Rs 415.02 crore versus Rs 517.28 crore; EPS was Rs 18.58 versus Rs 23.08.

• EBITDA was Rs 856.96 crore versus Rs 898.41 crore; operating profit was Rs 190.01 crore versus Rs 187.30 crore.

• A one-time Rs 160.73 crore PAT impact resulted from the election of the lower 25.17% tax regime and reduction in deferred tax assets.

• Lockdown-period employee benefit costs of Rs 9.93 crore and depreciation of Rs 2.39 crore were presented as exceptional items.

Outlook and guidance

• Exploring a graving dry dock via adjacent Mumbai Port Trust land or a greenfield Nhava Yard shipyard across 40 acres; submarine launch facility construction is underway.

• Submarine infrastructure is intended to support two parallel construction lines; shortlisted for P-75(I), with the Ministry of Defence RFP awaited.

• Medium Refit cum Life Certification of an Indian Navy submarine is in progress; further SSK refit orders are considered likely after completion.

• Plans include expanding ship repair/refit, diversifying into underwater and marine equipment, heavy engineering and offshore platforms, and pursuing export opportunities.

• COVID-related project delays were to be discussed with customers for revised delivery schedules; no change to orders under execution was anticipated.