Mazagon Dock Shipbuilders Navigates Profit Decline and Overseas Expansion

Mazagon Dock Shipbuilders, India's largest warship manufacturer, has reported a 35% decline in net profit for the June quarter, amounting to Rs 452.15 crore, compared to Rs 696 crore in the same period last year, according to regulatory filings.

Despite this setback in profits, the shipbuilder saw a positive uptick in its revenue from operations, increasing 11.4% year-on-year to Rs 2,625.59 crore, as compared to Rs 2,357.02 crore in the corresponding period of the previous year. However, the total expenses witnessed a surge to Rs 2,348.05 crore, mainly due to higher raw material costs and other operational expenses.

In a significant strategic move, Mazagon Dock Shipbuilders announced its planned acquisition of Sri Lanka's Colombo Dockyard PLC in an all-cash deal valued at approximately Rs 452 crore. This acquisition is intended to expand the company's capabilities and market reach, making it the first Indian shipyard to acquire an overseas facility.

(With inputs from agencies.)