Mazgaon Dock up 7% in 5 days as revenue forecast revised up

Mazagon Dock Shipbuilders announced a strong set of earnings for the second quarter of the current fiscal year (FY23). Revenue increased by 8% and margins increased by 6.9%. The stock reacted positively to the numbers and has since risen around 7%.

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

Speaking to CNBC-TV18 after the earnings report, Sanjeev Singhal, the company’s chief financial officer, said revenue guidance had been revised upwards.

“As the first half is already over, we would like to revise our guideline for FY23 to around 25-30% growth over the previous year. Therefore, we expect Rs 7,400-7 500 crore, if things go according to our plan. So that would be the revenue forecast for the current year,” he said.

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

The company aims to move into ship repair, but Singhal says the focus will remain on fulfilling higher value orders, particularly in the defense sector for destroyers and submarines.

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

Speaking of submarines, Singhal said, “We have the capacity to build 11 submarines simultaneously, in a staggered manner, at different stages of production.”

For the full interview, watch the attached video