Strong Revenue Growth Marks Robust Operational Performance
Mazagon Dock Shipbuilders Ltd (MDL), India’s premier defence public sector undertaking (PSU) under the Ministry of Defence, reported a 14 percent year-on-year increase in its turnover for the financial year 2024–25 (FY25), reaching an estimated ₹10,775.34 crore. The announcement was made on April 8 as part of its financial update and was accompanied by the declaration of a second interim dividend, reinforcing the company’s commitment to delivering shareholder value amid operational momentum.
The shipbuilding giant, which plays a critical role in India’s naval capabilities, has experienced steady growth driven by its strategic contracts in defence shipbuilding, particularly for the Indian Navy. The sharp rise in turnover is attributed to the steady execution of key projects, including submarine production and advanced stealth warships, which are part of India’s growing emphasis on maritime self-reliance under the ‘Aatmanirbhar Bharat’ initiative.
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Turnover for FY25 rose to approximately ₹10,775.34 crore, marking a 14% YoY growth.
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Growth reflects steady project execution and rising demand in defence manufacturing.
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Strategic role in defence production continues to boost revenue visibility for the company.
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Second Interim Dividend Declared for FY25
Alongside its financial update, Mazagon Dock’s board of directors approved the payment of a second interim dividend of ₹3 per equity share for FY25. The dividend will be disbursed on or before May 7, 2025, to shareholders whose names appear in the company’s records as of April 16, which has been set as the record date. This development follows the company’s earlier payout of ₹23.19 per share as the first interim dividend in October 2024, taking the total dividend declared so far for FY25 to ₹26.19 per share.
The dividend announcement underscores MDL’s healthy cash flow and profitability, allowing it to reward investors despite fluctuations in the broader equity markets. The dividend yield remains attractive relative to peers in the PSU defence space, maintaining investor interest in the stock even amid intermittent volatility.
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Second interim dividend of ₹3 per share approved for FY25.
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Record date for dividend eligibility is April 16, 2025.
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Payment will be made on or before May 7, 2025.
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Total FY25 dividend declared so far stands at ₹26.19 per share.
New CFO Appointment Strengthens Leadership Bench
In a related development, Mazagon Dock’s board has approved the appointment of Ruchir Agrawal as the new Chief Financial Officer (CFO) of the company. Agrawal currently holds the position of Director (Finance) at MDL, and his elevation to CFO is expected to bring continuity and strategic depth to the company’s financial planning and execution. His prior experience in public sector finance and defence manufacturing sectors will be crucial as MDL continues to expand its order book and scale up its shipbuilding capabilities.
The appointment comes at a time when MDL is expanding its strategic footprint in both domestic and export markets. A seasoned finance professional at the helm is expected to aid in efficient capital allocation, cost control, and financial risk management—key areas of focus for a capital-intensive industry like shipbuilding.
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Ruchir Agrawal appointed as CFO of Mazagon Dock Shipbuilders.
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Agrawal already serves as Director (Finance), ensuring leadership continuity.
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Strategic leadership realignment aligns with company’s growth ambitions.
Stock Recovery After Temporary Volatility
Following a steep decline of 10 percent on April 7—triggered by the government’s announcement to offload up to 4.83 percent stake in the company at a floor price of ₹2,525 per share—Mazagon Dock’s stock rebounded nearly 3 percent on April 8 to trade at ₹2,384 apiece. The initial selloff was part of a broader market correction but also reflected investor reaction to potential dilution from the government’s stake sale.
Despite the decline, investor sentiment appears to have stabilized, buoyed by the strong financial performance, dividend declaration, and leadership updates. Analysts have pointed out that MDL’s long-term fundamentals remain intact, especially given its robust order book and exclusive role in India’s defence ecosystem. The stock’s recovery is indicative of sustained investor confidence in the company’s strategic importance and financial discipline.
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Stock rebounded nearly 3% to ₹2,384 after a sharp 10% fall on April 7.
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Fall was triggered by the announcement of a government stake sale.
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Recovery aided by strong FY25 turnover, dividend declaration, and management stability.
