Mazgaon Dock up 7% in 5 days as revenue guidance revised higher

Mazagon Dock Shipbuilders reported a strong set of earnings for the second quarter of the current financial year (FY23). The revenue was up 8 percent and margins came 6.9 percent higher. The stock has reacted positively to the numbers and is up approximately seven percent since.

In fact, the Mazagon Dock scrip has had a dream run this year. It is up 35 percent in one month. The rally started in July and now the stock is up almost 183 percent.

Speaking to CNBC-TV18 after the earnings report, Sanjeev Singhal, Director-Finance of the company said that the revenue guidance has been revised higher.

“Considering that the first half is already over, we would like to revise our guideline with respect to FY23 to around 25-30 percent growth compared to the previous year. Therefore, we are expecting Rs 7,400-7,500 crore, if things go as per our plan. So that would be the revenue guidance for the current year,” he said.

However, the company does not expect capex to exceed Rs 200 crore.

The company aims to get into the ship repair business but Singhal says that the focus will remain on the execution of larger value orders, particularly in the defence sector for destroyers and submarines.

The company has bagged ship repair orders for MV Albatross, Tag-10, Offshore Adventure, and MV Kalpana. (MV stand for a motor vessel in ships).

Talking about submarines, Singhal said, “We have a capacity of constructing 11 submarines simultaneously, in a staggered manner, at different stages of production.”