Mazagon Dock looks for new warship projects, expects growth in FY25 on strong order pipeline

MUMBAI : Mazagon Dock Shipbuilders expects a decent growth in the financial year-ending March 2025, drive by new projects as well as other projects in the pipeline.

Sanjeev Singhal, Chairman and Managing Director of the defence PSU said that the company will complete at least three deliveries in the current financial year, which will be a record performance. At the topline, he said, Mazagon Dock will be eyeing for a fourth delivery as well.

“Considering the momentum at which we are executing the projects right now, I can say that there should be decent growth. We would get a better clarity during the third quarter. This financial year, we are eyeing for three deliveries. If things go well we can also look for another delivery. So it will be a record performance by itself,” he said.

Talking about the bottomline, going ahead we see reasonably good margins. The deliveries are going as per schedule. Even if we deliver the last Destroyer submarine by October, it would be five months ahead of schedule. Any delivery before schedule has a significantly positive impact on the margins,” Singhal added.

While revenue recognition does not usually peak during deliveries, Singhal predicted that the delivery of the P-75 India submarine project may be peak revenue recognition. “Revenue recognition does not happen at the time of delivery, but considering that we are working on three parallel projects and plan to close two of them by this financial year, it is quite possible that Project-75 may be the peak revenue.”

Singhal projected a strong order pipeline in the near future. “For the 75I submarine, we are participating alongside TKMS Germany. Moving ahead, we are positive about this order also. I see a strong order pipeline not only in shipbuilding and submarines but also for offshores,” he said.

Mazagon Dock recently bagged an order worth Rs 4,676 crore from ONGC. “This is also a revenue stream we are adding as a diversification. As on June, our order book stood at Rs 36,800 crore and as of today it is roughly around Rs 40,400 crore owing to the ONGC order,” he added.

The Defence Ministry Public Sector Undertaking (PSU) is currently in the process of making four units of the Frigate warship. “The first Frigate will be delivered by the third quarter of this financial year. There would be a requirement of seven next gen frigates, of which four may come to Mazagon Dock. However this would require some time. We are positive with respect to the new generation frigate orders,” Singhal said.