Mazagon Dock Shipbuilders increases revenue guidanceMAZDOCK - 2013 Change: 0.55 (0.03 %)
The management in a media interaction has given the revenue guidance of 25-30% growth for FY23E. They said the current order-backlog is at about Rs 42000 crore and additional contracts of about Rs 33000 crore are expected over the next 1.5-2 years (which includes eight next generation corvettes and six high speed landing craft). On ship repair and exports front, he said that company is exploring these two areas and see a large opportunity here as well.
We view this as positive as the management earlier guided for 18-20% revenue growth guidance for FY23E. We believe that the execution has picked up significantly for all the three projects at hand (P-75 submarines, P-15B destroyeRs and P-17A frigates). Fifth submarine of P-75 (INS Vagir) and two waRships (one destroyer - INS Mormugao and one frigate - INS Nilgiri) are expected to be commissioned in FY23E. With an already strong order backlog of Rs 42000+ crore (~6x TTM revenues), MDL is well placed to benefit from Indian Navy’s big procurement plan for the next three tom four years.