Mazagon Dock Shipbuilders Limited Q4 FY24 Earnings Call Summary
Key Highlights
• Record Performance: Surpassed $1 billion in revenue; celebrated 251st Foundation Day.
• Liquidated Damages: Confirmed write-back of INR 141 crores in Q4; pending refunds of INR 300 crores for two submarines.
Project Updates
• Ongoing Projects: Updates on P-75 add-on submarines and 75I project with expected completion timelines.
• Upcoming Deliveries: First of 17A frigates targeted for FY’25; potential delivery of two frigates within the year.
Financial Projections
• Revenue Expectations: FY’25 revenue projected at INR 10,000 to 10,500 crores; margins expected to remain stable or improve.
• Order Book Growth: Anticipated increase to INR 40,000 to 50,000 crores depending on additional orders.
Capital Expenditures and Investments
• Cash Allocation: INR 15,000 crores earmarked for projects; INR 4,000 crores considered free cash.
• Investment Plans: INR 3,000 crores planned for capacity expansion over the next 3-4 years.
Warranty and Spare Parts Discussion
• Warranty Costs: Difficult to quantify due to variability; spares account for around 13% of large orders.
• Capex Plans: Expansion at two facilities to enhance shipbuilding and repair capabilities.
Order Book and Execution
• Total Order Book: Approximately INR 38,000 crores, including destroyers, frigates, submarines, and coast guard vessels.
• Pending Orders: Frigates pending around INR 17,000 crores; additional amounts for submarines and export orders.
Conclusion
• Navy Procurement Plans: Management not privy to certain internal Navy documents; confirmed liquidated damages of INR 300 crores for FY '24.
• Margin Improvements: Current contracts affect margin predictability; funds for projects are made available as needed.

Mazagon Dock Shipbuilders Limited Q3 FY24 Earnings Conference Call Summary
Key Highlights
• Record Profits: Achieved highest-ever quarterly and nine-month profits.
• Timely Deliveries: Success attributed to timely submarine deliveries and favorable resolutions on liquidated damages from the Indian Navy.
Project Updates
• Submarine Projects:
• Status of three add-on submarines and P-75I AIP program.
• Contract awards expected within 4 to 8 months.
• Destroyers and Frigates:
• Delivered third destroyer, Imphal, in October 2023.
• Fourth destroyer planned for FY25 (Q2/Q3).
• First of the 17A frigates expected before December 2024.
Financial Overview
• Cash Balance: Over ₹3,000 crores as of December 31, excluding advances.
• Liquidated Damages: Received approximately ₹160 crores in Q3; similar expected for Q4.
• Order Book: Stood at ₹38,389 crores, with plans for liquidation through ongoing deliveries.
Future Orders and Market Outlook
• New Orders: Over ₹7,000 crores booked for FY24, including contracts from Coast Guard and ONGC.
• Market Exploration: Optimism about exploring new markets, though current naval budget allocations may limit order materialization.
Profitability Insights
• Margin Variability: Profitability influenced by contract type and project experience.
• Contract Liabilities: Manageable liabilities around ₹9,000 to ₹10,000 crores, balanced by work in progress.
Strategic Developments
• Aircraft Carrier Projects: Not pursuing due to low demand.
• Submarine Projects: Ongoing work on additional Scorpène submarines and P-75I project.
• Infrastructure Plans:
• Development of 37-acre land in Nhava Sheva and Floating Dry Docks project.
• Floating Dry Dock project estimated at ₹500 crores over 2.5 years.
Export Potential
• Southeast Asia: Efforts to export naval vessels complicated by varying defense budgets and requirements.
Conclusion
• Investor Interaction: Sanjeev Singhal expressed appreciation for investor engagement during the call.