Today is also the first day that the stock will be trading with Futures & Options (F&O) contracts, as it is the start of the June series.
Mazagon Dock’s net profit halved from the same quarter last year, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by over 80%. Margins narrowed to just 2.8% from over to 16% in the base quarter.
Higher employee benefit and sub-contracting expenses weighed on the company’s operational performance.
However, the company managed to surpass its full-year guidance on the revenue and margin front.
During its December quarter earnings call, the management had said that provisions have been created with regards to excess inventories from ships with expired warranties.
While the components are still in good shape and may be used in future projects, the provisions will be reversed upon utilisation, the management added.
The management will be holding an earnings call later this evening. Analysts will be revising their estimates after the earnings call. Four out of the six analysts still have a “buy” rating on the stock.
With today’s F&O debut, one lot of Mazagon Dock, would be worth 175 shares.
Shres of Mazagon Dock have recovered from the lows of the morning, currently trading 5% lower at ₹3,569. The stock has snapped a seven-day winning streak.
