Shares of Mazagon Dock Shipbuilders jumped as much as 9.4 percent to Rs 2,440 on February 10, extending their rally for a second straight session as the company’s strong third-quarter earnings cheered investors.
The state-run shipbuilder posted a 29 percent rise in consolidated net profit at Rs 807 crore, up from Rs 627 crore in the same quarter last year.
Stay updated with our LIVE blog for real-time market movements
Revenue from operations surged 33 percent to Rs 3,143 crore from Rs 2,362.5 crore a year ago. EBITDA climbed 51.4 percent to Rs 817 crore, compared to Rs 539 crore last year, with margins expanding to 26 percent from 23 percent. Total income rose to Rs 3,430 crore, while expenses increased to Rs 2,367 crore from Rs 1,845 crore.
Boosting sentiment further is a report by ThePrint that the Indian Navy has sealed a deal worth over Rs 36,000 crore with state-owned Mazagon Dock Shipbuilders for the procurement of three additional Scorpene submarines. The contract is expected to be signed by March 31 this fiscal. The Defence Ministry and Mazagon Dock Shipbuilders Ltd (MDL) are set to sign the deal in India ahead of Prime Minister Narendra Modi’s visit to France this week for the Artificial Intelligence Summit.
Additionally, the Union Budget 2025 introduced measures to support the shipbuilding industry. Finance Minister Nirmala Sitharaman announced the revival of the Shipbuilding Financial Assistance Policy and proposed a 10-year exemption from basic customs duty for shipbuilding and shipbreaking companies. Additionally, a Rs 25,000 crore maritime development fund will be created, and shipbuilding clusters will receive government support.
India currently holds just 0.05 percent of the global shipbuilding market, far behind China (~47 percent), South Korea (~30 percent), and Japan (~17 percent).
By 12:40 pm, Mazagon Dock Shipbuilders' stock traded at Rs 2,327 on the NSE, up 4.5 percent from the previous close. Despite market volatility, the Mazagon Dock stock has gained 12 percent in three months.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
