State-owned company Mazagon Dock Shipbuilders Ltd (MDL) announced on Friday (6 September) that it has been awarded a contract Oil and Natural Gas Corporation Ltd. (ONGC) for the pipeline replacement project.
“It is hereby informed that Mazagon Dock Shipbuilders Limited (MDL) has received a notification of award of contract dated 5th September, 2024 from Oil and Natural Gas Corporation (ONGC) for Oil Pipeline Replacement Project 8 Group A (PRP 8 Group A) on an EPC Reimbursable (OBE) basis at the ceiling price of Rs 1,486.4 crore inclusive of all taxes and duties (GST@12%),” the company said in a stock exchange filing.
The award notification specifies a contract value of ₹1,486.4 crore (including GST at 12%). The contract is based on an engineering, procurement and construction (EPC) reimbursable basis and covers a subsea pipeline replacement project.
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The work is expected to be completed on February 28, 2026. This project is exclusively national and highlights the collaboration between two government entities, MDL and ONGC.
During the first quarter of FY25, Mazagon Dock’s revenue increased 8.5% year-over-year to Rs 2,357 crore. Its earnings before interest, tax, depreciation and amortisation (EBITDA) nearly quadrupled year-over-year to Rs 642.5 crore, up from Rs 171 crore a year earlier.
EBITDA margin for the quarter expanded to 27.3% from 7.9% a year ago. Mazagon Dock’s improved operational performance was helped by a sharp fall in the cost of materials consumed, which declined to ₹1,106 crore from ₹1,433 crore in the same quarter last year.
The cost of procuring spares for the dock and depot has more than halved from last year, down to ₹109.2 crore from ₹214.7 crore last year. As of June 30, Mazagon Dock’s order book stood at ₹36,839 crore, it said in its investor presentation.
Shares of Mazagon Dock Shipbuilders Ltd closed at ₹4,400.30, down ₹176.50, or 3.86%, on the BSE.
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