🧾 Introduction
Mazagon Dock Shipbuilders Ltd. reported its Q4 FY25 results, showing a sharp decline in profitability despite stable revenues. The stock reacted negatively, falling over 5% post-results. Operational inefficiencies and rising costs impacted margins, though the company ended FY25 with overall growth and declared a dividend.
💡 Financial Highlights
- Revenue (Q4 FY25): ₹3,174 Cr (↑ 2.3% YoY from ₹3,104 Cr)
- Operating Profit (EBITDA): ₹90 Cr (↓ 83% YoY from ₹524 Cr)
- Net Profit: ₹325 Cr (↓ 51% YoY from ₹663 Cr)
- Operating Margin: 3% (↓ from 17%)
- EPS: ₹8.06 (↓ from ₹16.43 YoY)
💰 Dividend Announcement
Mazagon Dock has proposed a final dividend of ₹2.71 per share for FY25. This will be paid within 30 days post-AGM approval. The AGM date is yet to be announced.
📊 Key Financial Metrics
| Metric | Q4 FY25 | Q4 FY24 | Q3 FY25 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 3,174 | 3,104 | 3,144 | ↑ 2.3% | ↑ 1.0% |
| Expenses (₹ Cr) | 3,084 | 2,580 | 2,327 | ↑ 19.5% | ↑ 32.5% |
| Operating Profit (₹ Cr) | 90 | 524 | 817 | ↓ 83% | ↓ 89% |
| PBT (₹ Cr) | 370 | 849 | 1,063 | ↓ 56% | ↓ 65% |
| Net Profit (₹ Cr) | 325 | 663 | 807 | ↓ 51% | ↓ 60% |
📉 Key Financial Ratios
| Ratio | Q4 FY25 | Q4 FY24 | Q3 FY25 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Operating Profit Margin | 3% | 17% | 26% | ↓ 1,400 bps | ↓ 2,300 bps |
| Net Profit Margin | 10.20% | 21.40% | 25.70% | ↓ 11.2% | ↓ 15.5% |
| EPS (₹) | 8.06 | 16.43 | 20.01 | ↓ 8.37 | ↓ 11.95 |
🆚 Peer Comparison
| Company | CMP ₹ | M.Cap ₹ Cr | P/E | P/B | ROE % | ROCE % | 52W High ₹ | 52W Low ₹ |
|---|---|---|---|---|---|---|---|---|
| Mazagon Dock | 3,478 | 1,40,303 | 58.1 | 17.67 | 34.03 | 43.17 | 3,778 | 1,200 |
| Cochin Shipyard | 1,947 | 51,224 | 60.8 | 9.13 | 15.85 | 20.13 | 2,979 | 1,180 |
| Swan Defence | 162 | 856 | 2.9 | 2.9 | -46.43 | -5.76 | 171 | 36 |
| Laxmipati Engg | 206 | 118 | 18.2 | 13.82 | 122.18 | 18.4 | 250 | 0 |
| Hariyana Ship | 127 | 78 | 48.8 | 0.53 | 1.1 | 3.2 | 240 | 91 |
🧭 Strategic Developments
- The company cited high employee benefits and subcontracting costs as major contributors to the margin compression.
- FY25 results beat full-year revenue and margin estimates, indicating underlying strength.
- Recent stock surge tied to defence sector enthusiasm following ‘Operation Sindoor’, showcasing India’s indigenous capabilities.
✅ Positives & Negatives
Positives This Quarter:
- Revenue grew YoY despite challenges.
- Full-year estimates were surpassed.
- Industry tailwinds from domestic defence initiatives.
Negatives / Challenges This Quarter:
- Severe decline in profitability and operating margins.
- High cost pressure due to employee and subcontracting expenses.
- Market reaction sharply negative (5% intraday fall).
- EPS halved from last year.
📉 Market Reaction & Street View
- Stock fell 5.17% intraday after the results, hitting a low of ₹3,450 from an all-time high of ₹3,778.
- Investor sentiment soured due to sharp margin drop.
- Brokerages are cautious due to operational weakness but may revise targets after AGM and full-year commentary.
🔮 Final Outlook
While Mazagon Dock delivered strong full-year growth and a modest revenue uptick in Q4, margin erosion and a significant profit decline have cast doubts on its near-term outlook. However, long-term fundamentals remain intact owing to the strategic role in India’s defence sector, recent high-order visibility, and continued government support.
🔗 External Links
For detailed financials and official updates, visit: Mazagon Dock Official Website
⚠️ Disclaimer
This summary is based on publicly available information from official filings, press releases, and financial news sources. It is provided for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions.