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Mazagon Dock Shipbuilders- Better Than Expected Q1 Print; Order Inflow Visibility To Improve: ICICI Securities

Mazagon Dock Shipbuilders - Better Than Expected Q1 Print; Order Inflow Visibility Likely To Improve: ICICI Securities

<div class="paragraphs"><p>Mazagon Dock Shipbuilders Ltd. (Source: Company website)</p></div>
Mazagon Dock Shipbuilders Ltd. (Source: Company website)

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ICICI Securities Report

Mazagon Dock Shipbuilders Ltd.’s Q1 FY23 print was better than our estimates with revenue growth of 83.7% YoY. Ebitda margin was 7.8% in Q1 FY23 versus 5.8% in Q1 FY22 and 5.5% in Q4 FY22.

Mazagon Dock Shipbuilders has achieved ~37% of its guided revenue for FY23 in Q1 FY23 (10% revenue growth guidance for FY23).

The percentage of indigenisation in the ships built by the company has been steadily increasing from ~42% in P15 Delhi Class Destroyers (built in 1990s) to 75% in P17A Nilgiri Class Frigates (under construction).

We expect execution to peak at more than Rs 80 billion in FY24E. Orderbook remains at ~Rs 460 billion as at FY22-end.

Click on the attachment to read the full report:

ICICI Securities Mazagon Dock Q1FY23 Resullts.pdf

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