Mazagon Dock share price

Mazagon Dock Shipbuilders Reports Impressive 75.7% YoY Net Profit Growth in Q2 FY25

Mazagon Dock Shipbuilders Ltd, a premier name in the Indian shipbuilding sector, reported a stellar 75.7% year-on-year (YoY) rise in its net profit, reaching ₹585 crore for the September quarter of FY2025. This sharp increase in profit stands out against the ₹332.9 crore reported during the same quarter last year. However, on a quarter-on-quarter (QoQ) basis, profits declined by 16.99% from ₹696.10 crore in Q1 FY2025.

Strong Revenue and EBITDA Growth in Q2 FY25

Mazagon Dock’s revenue from operations surged 51% YoY, reaching ₹2,756.8 crore, up from ₹1,827.7 crore in Q2 FY24. On a sequential basis, revenue rose 16.96% over the previous quarter. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also witnessed a significant boost, reaching ₹509 crore—a 187.57% jump compared to the ₹177 crore recorded in Q2 FY24. However, EBITDA was down from ₹642 crore reported in the preceding quarter.

Market Response and Share Performance

Following the announcement, Mazagon Dock’s stock price surged by 7% on the BSE, reaching ₹4,309.95. The stock has been a top performer, delivering a staggering 121% return to investors over the past year. Despite this strong long-term performance, the stock experienced a correction of over 16% in the last three months.

Key Corporate Actions: Dividend and Bonus Issue

In its recent board meeting held on October 22, Mazagon Dock declared an interim dividend of ₹23.19 per equity share for FY2025. The record date for this dividend was set for October 30, 2024.

Additionally, the board announced a first-ever bonus issue in a 2:1 ratio, allowing investors holding one share to receive two additional shares. The company is yet to declare the record date for the bonus issue. Furthermore, a potential stock split is also under consideration, pending shareholder approval.

Conclusion

Mazagon Dock’s impressive financial results in Q2 FY25 highlight its robust position within the shipbuilding industry. With strategic growth in revenue, profit, and substantial shareholder rewards through dividends and bonuses, the company is on a promising trajectory for investors.

FAQs:

1.What is Mazagon Dock’s net profit for Q2 FY25?

A. Mazagon Dock reported a net profit of ₹585 crore in Q2 FY25, marking a 75.7% YoY increase.

2.How did Mazagon Dock’s revenue perform in Q2 FY25?

A. Revenue grew by 51% YoY to ₹2,756.8 crore and rose 16.96% on a QoQ basis.

3.What is Mazagon Dock’s EBITDA growth for Q2 FY25?

A. EBITDA reached ₹509 crore in Q2 FY25, a significant 187.57% YoY increase.

4.How did the stock respond to the Q2 results?

A. Mazagon Dock’s stock price rose 7% on the BSE, reflecting positive investor sentiment.

5.What was Mazagon Dock’s stock performance over the last year?

A. The stock has delivered multibagger returns, surging 121% over the past year.

6.What dividend did Mazagon Dock declare in Q2 FY25?

A. The company declared an interim dividend of ₹23.19 per share for FY2025.

7.When is the record date for Mazagon Dock’s interim dividend?

A. The record date for the interim dividend is October 30, 2024.

8.What is Mazagon Dock’s recent bonus issue?

A. Mazagon Dock announced a 2:1 bonus issue, where investors will receive two additional shares for every share held.

9.Has Mazagon Dock set a record date for the bonus issue?

A. The record date for the bonus issue has not yet been announced.

10.Is Mazagon Dock planning a stock split?

A. Yes, a stock split is under consideration, pending shareholder approval via a postal ballot.

Mazagon Dock share price

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