Mazagon Dock Shipbuilders Ltd. recently reported impressive Q2 FY25 results, with a 76% year-over-year increase in net profit to INR 585 crore. This growth was driven by a 51% surge in revenue, which reached INR 2,756.83 crore, up from INR 1,827.70 crore in the prior year.
Financial Highlights
- Total Income: Grew by 44.8% to INR 3,011.11 crore.
- EBITDA: More than doubled to INR 510 crore, with margins rising from 9.6% to 18.5%.
- EPS: Basic and diluted EPS climbed to INR 29.01, reflecting stronger profitability.
Strategic Impact and Market Response
Mazagon Dock, a crucial player in India’s defense manufacturing, continues to expand its order book with projects for the Indian Navy and offshore structures. Following the earnings release, shares of Mazagon Dock saw a 7% increase, closing at INR 4,304.05 on the BSE. The stock has gained over 87% year-to-date, showcasing robust investor confidence.
Dividend and Stock Split
In October, Mazagon Dock’s board approved a 2-for-1 stock split alongside an interim dividend of INR 23.19 per share. This move, along with the FY24 final dividend of INR 12.11, enhances shareholder value, aligning with the company’s growth-oriented vision.
As a government-owned enterprise with a strong legacy in shipbuilding, Mazagon Dock’s performance underscores its critical role in India’s naval infrastructure. With growing revenues and a strong financial position, Mazagon Dock Shipbuilders remains a key stock to watch in the defense sector.