Mazagon Dock Q3 results preview: Expectations, concall, stock performance & more

State-run shipping player Mazagon Dock Shipbuilders is set to announce its results for the quarter and nine-months ended December 31, 2024 later today. The management team of the company shall be participating in the Q3FY25 investor earnings call on Friday, February 7 2025 at 5.00 pm, said the company in a separate exchange filing.

According to analysts tracking the counter, the defence player is likely to report a strong set of performance in the quarter in terms of revenue on a year-on-year (YoY) basis, while Ebitda on a quarter-on-quarter (QoQ) basis may grow in single digits. Net profit is also likely to report a single digit growth in the third quarter of the current financial year.

Brokerage firms believe that the company may report a more than 100 basis points (bps) growth in Ebitda margins on a sequential basis, which may contract on a year-on-year comparison. Management's commentary, order book execution and mega orders in the quarter shall be the key things to watch out for.

Nirmal Bang Institutional Equities is penciling in a revenue of Rs 2,858.6 crore, rising 21 per cent YoY and 3.7 per cent QoQ. Ebitda is seen at Rs 559.9 crore, up 3.8 per cent YoY and 9.6 per cent QoQ. However Ebitda margin is increasing about 110 bps sequentially to 19.6 per cent. PAT is seen to come in at Rs 668.5 crore, up 6.7 per cent YoY and 14.3 per cent QoQ.

Mazagon Dock plans to provide one destroyer, one frigate, and a submarine in FY25. Its order book was recorded at Rs 39,800 crore as of 2QFY25. Potential significant projects include the P75-I submarines, four P17A stealth frigates, four next-generation destroyers, and the P17 Bravo project. It has secured a contract worth Rs 19,900 crore from the Ministry of Defence to construct an Air Independent Propulsion Plug to improve conventional submarines' endurance, Nirmal Bang said, which has a 'hold' rating.

Shares of Mazagon Dock Shipbuilders dropped more than a per cent to Rs 2,173.75, commanding a total market capitalization slightly below Rs 88,500 crore. The stock had settled at Rs 2,197.55 on Thursday. The stock has tumbled nearly 25 per cent from its 52-week high at Rs 2,929.98 hit in July 2024.

Antique Stocks Broking is penciling Mazagon Dock Shipbuilders' revenue to come in at Rs 3,215.3 crore, up 36 per cent YoY and 17 per cent QoQ. Ebitda is seen to come in at Rs 594.6 crore, up 10 per cent YoY and 16 per cent QoQ. Net profit is likely to come in at Rs 615.3 crore, up 4 per cent YoY and up 9 per cent QoQ.

"India's defence sector has been on a growth trajectory over the past few years supported by favorable policy initiatives by the government. At an aggregate level, margin performance across our coverage universe and supply chain issues for some companies would be the key monitorable," said Antique, which has a 'buy' rating on Mazagon with a target price of Rs 2,757.