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News: Mazagon Dock Shipbuilders (MDL) has recorded revenue from operations of ~Rs 9400 crores (provisional and unaudited) for FY24E, registering a growth of ~20% YoY.
Views: Revenue growth of ~20% YoY for FY24 is ahead of street expectations and management’s guidance of 10-12% YoY. Implied revenue growth for Q4FY24 stands at ~46% YoY. Order backlog is estimated to be at ~Rs 35500 crore (3.8x FY24 revenues), provides healthy revenues visibility. Orders pipeline is also robust considering the upcoming contracts in submarines, destroyers, frigates. Company has also been exploring opportunities in exports & repair/refit in defence or commercial shipbuilding where new contracts would emerge in future. However, timely placement of these large orders would be the key for long-term growth.
Impact: Positive