Mazagon Dock Shipbuilders Q1 profit drops 35 pc to Rs 452.15 cr revenue up 11.4 pc

Mumbai, Jul 28 (PTI) India's biggest warship builder Mazagon Dock Shipbuilders on Monday reported a 35 per cent drop in its consolidated net profit for the June quarter to Rs 452.15 crore.
     It had posted a net profit of Rs 696 crore during the April-June quarter of the previous fiscal, Mazagon Dock Shipbuilders said in a regulatory filing.
    The company's revenue from operations increased by 11.4 per cent year on year to Rs 2,625.59 crore during the quarter under review compared to Rs 2,357.02 crore in the corresponding period of the previous fiscal.
    Its total expenses surged to Rs 2,348.05 crore in the June quarter from Rs 1,739.23 crore a year ago, with a notable increase in raw material costs, procurement of spares, subcontracting charges and provisioning, it added.
     Shares of Mazagon Dock Shipbuilders fell 3.36 per cent to close at Rs 2,789.80 apiece on the BSE.
    Last month, the state-owned defence PSU Mazagon Dock Shipbuilders said it would acquire a controlling stake in Colombo Dockyard PLC in an all-cash deal of about Rs 452 crore.
    The Mumbai-headquartered shipbuilder said the proposed acquisition will enable the company to strengthen its position in the ship repair and shipbuilding industry by unlocking operational synergies, enhancing research and development capacities and expanding market reach.
    This is the first instance of an Indian shipyard, both state-owned and private, acquiring a shipyard overseas. Colombo Dockyard PLC is a publicly listed company incorporated under the laws of Sri Lanka.

(This story has not been edited by THE WEEK and is auto-generated from PTI)