Mazagon Dock may gain as Q2 net profit jumps 56%

The Mazagon Dock Shipbuilders stock is likely to gain on November 9 after the ship-building company reported a consolidated profit of Rs 333 crore for the September quarter, up 55.6 percent from Rs 214 crore in the year-ago period.

Shares of Mazagon Dock settled at Rs 1981.1 on November 8, higher by 0.47 percent compared to the previous session’s closing price.

Consolidated profit rose as a result of other income and strong operating numbers. Consolidated revenue increased by 7.4 percent to Rs 1,827.7 crore from the year-ago quarter.

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The company also announced an interim dividend of Rs 15.34 a share, which would result in a total payout of Rs 309.39 crore. The dividend, the highest from the state-owned company, shall be paid on or before December 7.

The EBITDA clocked in at Rs 176.7 crore in the July-September quarter was higher by 50 percent, while the EBITDA margin expanded to 9.7 percent, up 280 basis points.

On October 17, the shipbuilder signed a deal with the defence ministry to build a training ship for the Indian Coast Guard at a cost of Rs 310 crore. The ship will have advanced and modern high-tech surveillance and monitoring systems.

Mazagon Dock has gained more the 150 percent in 2023, more than doubling investors’ wealth. The blue-chip equity benchmark Nifty has gained 6.85 percent during the same time period.