Mazagaon Dock, which debuted in early October has rallied 27 percent since listing. Even though the stock is doing well, its business is seeing some disappointments. The firm's FY20 growth came in at just 8 percent and the first half of FY21 saw a big drop in revenue because of the pandemic.
However, as per Sanjeev Singhal, Director-Finance of Mazagon Dock Shipbuilders, the company has bounced back well and is back on track.
“As far as the Q1 performance is concerned, definitely we were down. But there are positive signs when compare to the Q2 performance with corresponding period last year. There has been a robust growth of around 16 percent in terms of revenue from operations and 9 percent in terms of total income. The YoY profit for the first half of the year also saw a slight increase of around 4 percent after taking into consideration that around Rs 27 crore we had to write off in Q2 on account of the COVID expenditure," Singhal said in an interview with CNBC-TV18.
He expects H2 performance to also be better than last year. Singhal also sees large revenues in FY23 and FY24 on the back of execution.
“We expect FY22 to be a good year, but at the same time the drag of 2021, the lower base effect would definitely be there. Operations would be normalizing but whatever delays have taken place on account of the pandemic, some drag would be there in 2021-22,” he said.For full interview, watch video.