Mazagon Dock Secures ₹121.68 Crore AI Project from MAHAGENCO

11 Oct 2024 , 03:25 PM

Mazagon Dock Shipbuilders Ltd. received a purchase order from Maharashtra State Power Generation Company Ltd. (MAHAGENCO). The contract is for the supply, installation, and commissioning of an AI-based comprehensive infrasecure project.

The total contract value is ₹121.68 Crore, inclusive of all taxes and duties. The project will be implemented at two locations: GTPS-Uran and KGSC-Pophali.

In addition to the project execution, Mazagon Dock will provide annual maintenance contracts (AMC) after the first year. The project is expected to be completed by October 10, 2025.

At the time of writing on October 11, 2024 at 3:24 pm, shares of Mazagon Dock is trading at ₹4373.25 which is a 1.24% dip than the porevious close. Mazagon Dock has gained 103% in the last one year, and 90% since the beginning of the year.

Mazagon Dock’s Chairman and Managing Director, Sanjeev Singhal, stated that EBITDA margins for FY25 are expected to stabilize around 11-12%. The company has no working capital concerns, debts, or loans and remains cash surplus.

Singhal emphasized that a 10-12% margin is considered healthy, especially as the company expands its repair and offshore project verticals. The contract follows an earlier report where Mazagon Dock indicated that its margins in the June quarter may not be sustained.