Mumbai: Mazagon Dock Shipbuilders Ltd, a leading Defence Public Sector Undertaking (PSU), announced its financial results for the fourth quarter of FY2024-25 on Thursday, revealing a substantial decline in net profit, despite a modest rise in operational revenue.
Q4FY25 Results: Revenue Inches Up, But Profit Halves
Mazagon Dock reported a net profit of ₹325.3 crore for the January-March 2025 quarter, marking a sharp 51% drop from ₹663 crore recorded in the same period last year. The company’s consolidated revenue from operations rose slightly by 2.3%, reaching ₹3,174.4 crore compared to ₹3,103.7 crore in Q4FY24.
In terms of expenses, the total outflow for Q4FY25 stood at ₹3,11,411 lakh, reflecting a marginal increase aligned with the company’s operational expansion.
Read Also: Govt to Sell Up to 4.83% Stake in Mazagon Dock Shipbuilders at Rs 2,525 per Share
Profit After Tax and EBITDA Take Major Hit
The Profit After Tax (PAT) stood at ₹32,529 lakh, representing a 50.93% decline year-on-year. On the operational performance front, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) plummeted by 83%, falling to ₹90 crore from ₹524 crore in the corresponding quarter of FY24.
Dividend Announcements: Final Payouts and Interim Dividends
Despite the profitability pressure, Mazagon Dock’s board has recommended a final dividend of ₹2.71 per equity share of ₹5 each for FY2024-25. This follows:
- A first interim dividend of ₹23.19 per share (based on a face value of ₹10 prior to stock split), and
- A second interim dividend of ₹3.00 per share post the stock split.
If approved at the upcoming Annual General Meeting (AGM), the final dividend will be paid within 30 days from the declaration date.
Road Ahead
While Mazagon Dock Shipbuilders has shown resilience in maintaining revenue growth amidst cost pressures, the steep drop in profits and operational margins has weighed on investor sentiment. The declared dividends may offer some relief to shareholders as the company navigates a challenging fiscal landscape in the defence sector.
About Mazagon Dock Shipbuilders Ltd
MDL, headquartered in Mazagaon, Mumbai, is a premier defence public sector undertaking under the Ministry of Defence. The shipyard specializes in the construction of warships, submarines, and a range of offshore platforms and vessels. MDL plays a pivotal role in advancing India’s naval capabilities and supports the Government of India’s ‘Make in India’ initiative through its indigenous shipbuilding efforts.
