The shares of this defence stock nosedived by 8 percent on Friday after the company announced its financial results. In this article, we will discuss about the company’s performance.
With a market capitalization of Rs 1,42,371 crores, the shares of Mazagon Dock Shipbuilders Ltd are currently trading at Rs 3,529 per share, down by 6.58 percent from its 52-week high of Rs 3,778 per share. In the last one year, the stock has delivered a return of 113 percent.
The reason behind this fall
On Thursday, the company has declared its financial results, which bagged a negative sentiment from investors. The company reported a consolidated revenue of Rs 11,432 crores in FY25, marking an increase of 20.75 percent from Rs 9,467 crores in FY24. On a year-on-year basis, revenue grew 2.25 percent to Rs 3,174 crores in Q4 FY25 from Rs 3,104 crores in Q4 FY24. Sequentially, revenue rose 0.95 percent from Rs 3,144 crores in Q3 FY25.
The company posted a net profit of Rs 2,414 crores in FY25, registering a growth of 24.61 percent from Rs 1,937 crores in FY24. On a year-on-year basis, net profit declined 50.98 percent to Rs 325 crores in Q4 FY25 from Rs 663 crores in Q4 FY24. Quarter-on-quarter, net profit fell 59.7 percent from Rs 807 crores in Q3 FY25.
Additionally, the company has announced a final dividend of Rs 2.71 per equity share of the face value of Rs 5, subject to the approval of shareholders at the ensuing AGM of the Company. A of 31 March 2025, the company has a total order book of Rs 32,260 crores.
The stock’s major decline has been attributed to its poor financial performance in the year. Its core operating profit stands at Rs 90 crores, which is the lowest in the last 12 quarters. Additionally, the stock has already rallied by more than 54 percent over the past six months.
Mazagon Dock Shipbuilders Limited is at the forefront of the Indian Defence Public Sector Undertaking. The Company is engaged in the construction and repair of ships, submarines, and offshore platforms. It is engaged in shipbuilding and submarine segments, producing destroyers, frigates, corvettes, patrol vessels and merchant vessels and offshore platforms, and jack-up rigs in the oil sector. The Company provides products driven by Artificial Intelligence, including remote-operated vehicles and advanced testing solution products.
Written by Satyajeet Mukherjee
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