shares declined 5.17 per cent to ₹3,557.30 on Friday after the company reported a sharp drop in fourth-quarter profit despite marginal revenue growth. The stock opened at ₹3,470, hitting a low of ₹3,426.10 before recovering from morning lows. Trading volume surged to 57.86 lakh shares worth ₹2,045 crore as the stock began futures and options trading with the June series debut.
Net profit plummeted to ₹325 crore from ₹663 crore in the year-ago quarter, while revenue rose slightly to ₹3,174 crore from ₹3,104 crore. The company’s EBITDA margins compressed drastically to 2.8 per cent from 16 per cent in the base quarter, with EBITDA falling over 80 per cent year-on-year. Higher employee benefit expenses and sub-contracting costs weighed heavily on operational performance.
The shipbuilder had created provisions for excess inventories from ships with expired warranties during the December quarter. Management indicated these provisions would be reversed when components are utilised in future projects, as they remain in good condition.
Despite the weak quarterly showing, Mazagon Dock exceeded its full-year revenue and margin guidance. The stock snapped a seven-day winning streak with Friday’s decline. Many analysts maintain buy ratings on the stock ahead of the management’s earnings call scheduled for Friday evening. With F&O trading now available, one lot comprises 175 shares at a margin rate of 28.17 per cent.