- 11 Aug 2023
- ICICI Securities
MAZAGON DOCK SHIPBUILDERS'S MUTED EXECUTION
MAZDOCK - 3522 Change: 340.00 (10.68 %)News: Revenue declined 2.6% YoY (+4.5% QoQ) to Rs 2172.8 crore. EBITDA margin remained flattish YoY (-223 bps QoQ) at 7.9%. Subsequently, EBITDA declined by 1.1% YoY (-18.5% QoQ) to Rs 171.7 crore. PAT was higher by 27.5% YoY to Rs 286.6 crore as other income increased by 71% YoY to Rs 232.7 crore.
Views: Revenue de-growth on YoY basis during the quarter was below expectations as execution has been slower in its key contracts (P-75 submarines, P-15B destroyers and P-17A frigates). Company’s order backlog stands healthy at Rs 39117 crore as of June 2023 (5x FY23 revenues). Moreover, there is also a strong pipeline of projects under consideration from Indian Navy including next generation warships, conventional submarines & nuclear powered submarines etc. Though long term outlook is strong in terms of healthy order backlog and strong pipeline, execution will remain a key factor to watchout for in the coming quarters.
Impact: Negative