Mazagon Dock Shipbuilders Ltd (NSE: MAZDOCK) Q4 2025 Earnings Call dated May. 30, 2025
Corporate Participants:
Jagmohan — Chairman and Managing Director
Ruchir Agrawal — Director (Finance)
Analysts:
Jyoti Gupta — Analyst
Atul Tiwari — Analyst
Anirudh Murarka — Analyst
Raj Rishi — Analyst
Amit Kumar — Analyst
Dipen Vakil — Analyst
Deepak Krishnan — Analyst
Sanjeev Zarbade — Analyst
Chinmay Gandre — Analyst
Rahul Arvind Patekar — Analyst
Gagan Thareja — Analyst
Presentation:
Operator
Ladies ladies and gentlemen, good day and welcome to the Dog Ship Builders Limited Earnings Conference Call hosted by Nirmal Bank Institutional Equities Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms Gupta from Nirmal Bang Institutional Equities Private Limited. Thank you, and over to you, ma’am.
Jyoti Gupta — Analyst
Thank you,. Good evening, everyone. On behalf of Nirmal Bang Institutional Equity, I welcome you to the quarter-four FY ’25 earnings conference call with the management of Dog Dog Ship Builders Limited. We have with us Captain Mohan, Retired Chairman and Managing Director; Shibitu Josh, Director; Commander Puranik, Retired Director of Corporate Planning and Personnaire;, Agarwal’s Director Finance and Shailesh; Jiang Bankar, Davi, retired Director Summary and Heavy. Without further ado, I would now request Captain, sir, to start with his opening comments, after which we can open the floor for questions-and-answers.
Thank you. Over to you, sir.
Jagmohan — Chairman and Managing Director
Yeah, good evening, everyone, and welcome to Masagon Dock Shipbuilders quarter-four and annual Earnings call for the period ended 31st March 2025. My name is Captain Jag Mohan, Chairman and Managing Director and I’m joined today by Director of Finance and CFO, Mr Agarwal; Director Shipbuilding; Mr Biju George; Director, Corporate Planning and Personnel, Commander Puranik; Director of Submarine and Heavy Engineering, Commodor Shailesh. Before we begin, I would like to remind everyone that today’s discussion may include forward-looking statements as defined under applicable securities laws.
These statements are based on our current expectations and projections about future events and financial trends and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. We undertake no obligations to update these forward-looking statements except as required by-law. For a detailed discussion of these risks and uncertainties, please refer to our latest financial results, press release and regulatory filings available on the stock exchange websites and our company website. As a listed entity in India, we are committed to adhering to the highest standards of corporate governance and transparency as mandated by SEBI LODR Regulations 2015.
This call is being conducted in compliance with these regulations, ensuring timely and equitable dissemination of information to all stakeholders. We are pleased to share our financial and operational performance for the quarter-four and the fiscal year ended 31st March 2025. Despite a challenging macroeconomic environment, we maintained our market position and managed to deliver a strong performance with robust revenue growth and improved profitability on year-on-year basis. During this call, we will provide an overview of our financial results, discuss key operational highlights and share our outlook for the upcoming period. Following this, we will open the floor for your questions.
We request you to limit your questions to two per participant in the initial round to ensure that everyone gets an opportunity. I would now like to hand over to Mr Ruchier Agarwal, Director of Finance and CFO, who will walk you through the detailed financial performance.
Ruchir Agrawal — Director (Finance)
Good afternoon. I’m Agarwal, Director Finance Dog. And this year we have recorded the highest revenue from operations, which is INR11,431 crores and the profit before-tax is INR3,109 crores. Earning per share of profit-after-tax is INR2,324.88 crores with an earning of 57.63% and the operating profit is INR194940.43 crores, giving a percentage — operating percentage of 16.97% and PBT to revenue is 27.2% against 26% which we reported last year.
And the EBITDA margin of 28.24% against 26.93% reported for the year — in last year, there is an increase of almost 2% on a year-to-year basis. As far as this quarter-four is concerned, the revenue is on the upper side, it is 3174 crores per and against a profit we earned is INR406 crores it is on consolidated basis and earnings per share of 8.11. If we compare quarter-to-quarter, our EBITDA margin is 13.74% against — 35.1% which we imported in December quarter. The primary difference — the reason for difference is the primary reason for difference is the provision we made in our books for the two contracts, one is for supply of FPV to and the other is the Denmark contract where we management is of the view that there are likelihood of incurring losses on those contracts.
So we have made as a prudent accounting policy, we have made the provision in our books and this is in-line with the accounting standard 37 and in the years — next year-on every quarter basis, we will be reviewing this liability. And based on our assessment, we will be charging it to profit and loss and reducing the provision what we have created our — in our course.
Jagmohan — Chairman and Managing Director
Yeah, you may start now.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press on the touchstone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to please limit your questions to two per participant and you to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles The first question is from the line of Atul Tiwari from JPMorgan. Please go-ahead.
Atul Tiwari
Yes, sir. Thanks a lot. Sir, my first question is on new medium-term margin profile. Over next two, three years, what kind of EBITDA margin we should look at? Will the current level of EBITDA margins be maintained or perhaps be even increased from this level?
Jagmohan
See MDL expects margins and profitability to significantly improve over the next years as major orders materialize. We are expecting the P75 additional submarines and the P75i submarines contract to be signed in this financial year and that is expected to increase our order book from the present INR32,000 crore to more than INR1.25 lakh crores. And these big-ticket projects are the forte of MDL. And with these projects coming in, our margins and profitability are expected to significantly increase. The economies of scales of these large submarine projects and the efficiency initiatives under Shipyard 4.0 and digital transformation efforts is expected to enhance the overall profitability of the yard.
Atul Tiwari
Sir, in past you — the company has guided to PBT margin of 12% to 15% over medium-term versus 25% 26% that we have been reporting. So now we should not work with the older guidance and assume the current level of, 26% 27% PBT margin to go up from here. Is that right understanding?
Jagmohan
See, if you look worldwide, the shipbuilding margins are approximately 15%. So the guidance of 15% is accurate. But what we must understand that in shipbuilding, revenues and profits are directly correlated to the order book and the lifecycle stages of current projects. Each project stage, whether at an initial design or a mid-stage construction or final delivery influences both the revenue recognition and the profitability significantly. So we cannot assume that since we have achieved 26% in 1/4 and one year, we will be able to achieve the same across-the-board.
So it is safe to have a guidance of approximately 15% and you can there are other shipyards who are listed and you can look at their profit margins and you will get a — you can gauge what is the general range. We have exceeded the general profit margin significantly. It is because there are certain projects where at a late-stage where greater revenue recognition and profitability were accrued and these projects were actually also obtained at significantly good margins.
So — but it is — I would consider that it is prudent to have a margin of approximately 15%.
Atul Tiwari
So, sir, just trying to understand it clearly because earlier you said that obviously, your margins this year were quite high and it should keep on improving because of these large orders. But so that means that we should be looking at perhaps 30% or 31% PBT margin. But now your guidance is 15%. So what is the right number to work with?
Jagmohan
Do you have with respect to quarter-four, you’ll see our quarter-four PBT is 12.8% if you see. Of course, it is primarily because of the large provisions that we have made. But these high margins which you are seeing over the last two, 3/4 is because the large projects 15 Bravo have been delivered and we have been able to accrue significant revenues and profits due to these. These — however, we cannot keep this as a standard profit margin that a shipyard can get.
So I would still consider that considering this 12%, yes, we will have an increase, but not considering the 26% what we have done over the year.
Atul Tiwari
Okay, sir. Very clear. And sir, my second question is on revenue growth. Your revenue has been growing at 20% plus over past couple of years. Can we expect the similar kind of revenue growth over next two, three years or will the revenue growth temporarily slow-down as the execution of large contracts that you will win this year will take some time to pick-up.
Ruchir Agrawal
You have seen a growth of 20% year-on a year-to-year basis, but that was a time where we had a steady order book. Now since the — the order book for new 75 and 75i is a little bit delayed. So sometime will be going towards their design and finalization of the basic parameters to for their execution. So it may not be correct to say that this 20% will be maintained. But by and large, we will see that the growth of the company is almost around 8% to 10% every year.
Atul Tiwari
Okay, sir. Thank you. Thanks a lot. I will come back-in the queue.
Operator
Thank you. The next question is from the line of Anirud Murarka from Continental. Please go-ahead.
Anirudh Murarka
Good evening, sir. Am I audible?
Jagmohan
Yes, good evening.
Anirudh Murarka
Sir, my question was regarding Goa Shipyard Limited, one of the entities in which our company is holding a substantial stake. So any plans to list it in future?
Jagmohan
So that is — actually this is the decision of because we are just a shareholder based on the government guidelines and we are not making a decision for their listing or not. That will be decided by Deepcom and MOD what is their intention and we will continue to build their shoulder till as per the wishes of the MOD.
Anirudh Murarka
Thank
Jagmohan
Government is the shareholder there with more than 51%. While we hold 47%, the government holds 51% and that’s a decision that the government will take.
Anirudh Murarka
And sir, my second question is how much cash we are having on our books right now?
Ruchir Agrawal
It will be to the tune of around INR11,000 crores to INR12,000 crores, but out of which INR6,000 is our margin and balance is on advances from?
Anirudh Murarka
Thank you, sir.
Operator
Thank you. The next question is from the line of Raj Rashi from DCPL. Please go-ahead.
Raj Rishi
Hi, am I audible? Hello yes yeah what’s the capacity increase expected over the next three to four years?
Jagmohan
See we have already augmented our capacity from construction of six submarines to 11 submarines because we are preparing to take both the additional submarines of 75 and the six P75i for which we have already set-up the SSA facility or the submarine section assembly workshop. So that is one area. And we have also taken-up land from the port for taking up small ships and we are also doing — having major capex plans in that land as well as in the Nava yard, which we have, which we have a capex of approximately INR4,000 crores.
So we can at the moment, I think consider — construct 10 major warships simultaneously and 11 submarines.
Raj Rishi
Okay. So is it — is it correct to say that like in three to four years, your capacity will be 3x of what it is today?
Ruchir Agrawal
And once the two capex programs comes to fruition and then it becomes fully operational, definitely the capacities will go up. So now it is at the consultancy DPR stage. The except of what would be the capacity, how it will increase, we’ll be able to gauge only after those DPRs comes because there are various technical considerations to finalize there. But definitely the capacity will increase at least by times.
Raj Rishi
And do you — do you plan capture in-quarter one? Yes. Hello.
Ruchir Agrawal
Yes.
Raj Rishi
Yeah. Do you plan to take any debt for this capex?
Ruchir Agrawal
No, as of now, we are quite healthy and we do not expect, but it will be based on the economics of the proposal. We will see.
Raj Rishi
Okay. And any plans for ship repairs, sir?
Jagmohan
Yeah, we have a vertical in ship repairs. We already have a vertical in ship repairs that we are currently using our wet basin as well as dried off. So we will be able to take ship repairs of larger ships, only one per dog — current dogs are free. And in the long-term, once this capex which is there, once it gets — one is — once it gets operational, we’ll be able to undertake repairs of larger ships. And in addition, we are also taking submarine repairs and that has contributed, I think approximately INR4,000 crores of revenue for us both in the MR LC as well as AIP plugs for the submarines which are already in-service with the Navy.
Raj Rishi
Okay. And sir, this supposed shipbuilding super-cycle which is going on globally and this move away from China, etc that should augur very well for companies like Dog, right?
Jagmohan
Yes, certainly. I think there is significant tailwinds that is going to further propel our growth, both commercially — from the commercial shipbuilding as well as in the defense shipbuilding because of the geopolitical situation. And as you have seen, both the Navys is likely to come out with the RFP for the 17 Bravo frigates shortly, which is a INR70,000 crore project. And we are poised best to take on that, although it is going to come on a competitive bidding, but MDL with its proven capability and infrastructure and having, you know, demonstrated to have constructed and delivered these ships profitably, we are best placed to actually win these contracts.
In addition, the Navy is also coming with a INR44,000 crore MCMV project. It’s set at AON stage. That’s also likely the RFP is also likely in a few months from now. So there is a lot of orders in the pipeline, both for the defense as well as for the commercial shipbuilding sector.
Raj Rishi
Okay. So some reports suggested that in the next 18 months-to 24 months, there is a possibility that Mazagon will get orders worth INR2.5 lakh crore. Any comments? Or is poised to get.
Jagmohan
See, it’s like this, it depends upon whether this — we are able to sign the 75 alpha 75 AS and the 75 submarine contracts quickly. That adds up at least to INR1 lakh crore. And if we win one of the shipbuilding contracts of, let’s say, 17 Bravo and the MCMV contracts, we could — we could at least theoretically reach those order book levels. We will see. But I’m confident that the submarine orders we are likely to sign quickly, particularly the 75 additional submarines.
Raj Rishi
Do you expect it in the — by September, sir?
Jagmohan
No, I expect that earlier because we have completed all the commercial negotiations with the Ministry of Defense and we are at virtually the contract signing stage. So maybe in as early as next month, hopefully.
Raj Rishi
Okay. Okay. Okay, sir. Thank you.
Operator
Thank you. The next question is from the line of Amit Kumar, an Individual Investor. Please go-ahead.
Jagmohan
Yeah, it’s expected to be in the range of anywhere between INR30,000 to INR40,000 crores.
Amit Kumar
Okay. And the first participant asked that a question about order book. And you implied that by the end of FY ’26, our order book could be INR1.25 lakh crores. Have I heard right?
Jagmohan
Yes, sir. That’s provided we are able to sign the contracts for both the 75 additional submarines as well as the 75 India submarines project. Signing of the contracts for these two projects are crucial for us to achieve those order book figures.
Amit Kumar
So are these nuclear submarines or normal submargines?
Jagmohan
No conventional, convention, not nuclear.
Amit Kumar
Okay, this 75 new conventional submarines, which we are expecting in next one or two months is INR40,000 crores.
Jagmohan
Yes, approximately, yes.
Amit Kumar
And there is another, you are saying 75 commercial and value — what is the value for that commercial in that same amount?
Jagmohan
Yes, we are at actually a negotiation stages with the Minister of Defense, so it would not be appropriate for me to give any.
Amit Kumar
No issues no. And so given our huge order book, so could you please provide the revenue and EBITDA guidance for next maybe three or four 5.5 financial year.
Jagmohan
So as the Director of Finance just brought out, we expect revenue growth of anywhere between 8% to 10 percentage and our PBT margins, we expect around 15 percentage.
Amit Kumar
But assuming a huge mammoth order book of around INR1 lakh crores by end of FY, so I think this guidance appears to be very conservative, 8% to 10% top-line growth, it appears to me.
Ruchir Agrawal
Actually, it takes time. If you see, it will be increasing by the time the finalization of design placement of order comes into picture, but it will depend upon how fast we are getting the orders from the ministry and how we are on how fast we are on the drawing board. It will depend and it is our estimation that it will be around 10% to 15% and will increase as we progress in the project.
Amit Kumar
Okay. And I think I can see a very some provisions of INR746 crores in this financial year. So could you please provide some more detailed insight and is it one-time or whether it is going to come in next year also or whether there is a probability of reversal of these provisions because it has impacted our EBITDA margin substantially.
Ruchir Agrawal
Actually what in my opening remarks, I mentioned that other — other than INR532 crores, which is — we have made a provision this year. Others are normal business provisions. This INR532 crores we are making as an estimate for a loss which we may incur in our two of the contracts. One is for Coast Guard 21 ships and six ships of 10 months. So this is based on our estimate as on-date and we will be reviewing this estimate every quarter.
And based on our further judgment, we will be either reversing these provisions or there may be chances of increasing the provisions too if we find that the losses are increasing. But major part of our provision we have already brought in the book and we will see how to mitigate this in time to come. And as we progresses, as we will progress is the — this will be transferred from provision to profitable loss account and provision will come down accordingly.
Amit Kumar
And could you please provide some insight what kind of are like liquidity damages or some other losses?
Ruchir Agrawal
Okay, we bid for this contract in 2022, ’23 and the prices of the parts and components have increased significantly after those build, maybe because due to the
Jagmohan
Global shipbuilding boom, a number of shipment pricing has shot up from what was originally envised and factored into our costing. So — but we have not yet ordered the entire package, entire equipment. So at the — as of now for the equipment that has been ordered, there is a potential loss that has been provisioned as DF has already mentioned. But the real picture will emerge as we complete the procurement and the net impact can be computed at that stage that we will be doing in a quarterly manner and reporting.
Amit Kumar
And as of now, we have almost 33,000 so that I helped maintain our gross margin over there.
Operator
I’m sorry to interrupt you. MR. Kumar, your voice is breaking. Can you please check?
Amit Kumar
Hello, yes, ma’am.
Operator
Hello, Mr Kumar.
Amit Kumar
Yes, ma’am. Yes, ma’am.
Operator
Your voice was breaking, sir. You may please go-ahead now.
Amit Kumar
Yes, sir. Yeah, I’ll my question. So, sir, we have order book of INR32,000 crores. So how much of these orders are cost of contract or fixed-price contracts because — so that our EBITDA margins and bottom-line remains profitable?.
Jagmohan
See, there in our investor presentation, actually the INR32,260 crore order book, 15 Bravo, 17 Alpha, the P75 class submarines that put together comes to almost INR20,000 crores. So approximately INR20,000 crores is a few projects on fixed-cost and the rest are also fixed-cost, but they are with the lesser margins, whereas these — so out-of-the INR32,000 crores, approximately two-thirds are projects with reasonably high margins
Amit Kumar
Okay, and sir, like during the recent conflict with Pakistan, so and I think India should focus on more nuclear. So is there a possibility that the defence ministry can think of preparation and ordering nuclear submargains to or any other shipbuilder, because defense is an amount for India now.
Jagmohan
Yeah, you see that’s a call that the Indian Navy and the Ministry of Defense will take. And in fact you may have read that the nuclear submarines fall on the strategic submarine category and I think the government has already placed an order, but that is getting done through the Navy, through the shipbuilding center in and not with the not with MDL.
Amit Kumar
So are built by our company or it’s a highly secretive operation only by the — like maybe
Jagmohan
No, it’s not with us at the moment and we don’t want to comment on something which is not with us.
Amit Kumar
Okay, okay Okay. Thank you. Thank you, sir. All the best. Thank you.
Operator
Thank you. The next question is from the line of Deepen Vakil from PhillipCapital. Please go-ahead.
Dipen Vakil
Hi, thank you for the opportunity. Sir, my — I wanted one clarification regarding your subcontracting charges, which have increased exponentially as a percentage of sales in this quarter. So can you tell us as to what the subcontracting charges are and what can be the kind of trend that we could be looking at going ahead?
Jagmohan
So this is in contrast to what we call as — actually the subcontracting is what we normally define as when in within our premises work is executed by a another party. What we mean by outsourcing is when the work is executed in a remote location, not in our promises. So because we have around 27 ships to-be-built simultaneously. Some of this work will have to be executed outside. Now at the same time, we are unable to give the entire ship outside. So this blocks have to be transported, transportation cost is also involved. So therefore, there is a increase compared to executing the work within our promises.
The — executing it outside is turns out to be costlier than executing it inside. So the simultaneous demand of — of the — what we call as the asking rate of all this put together is demanding outsourcing and that is why the cost is on the higher side.
Dipen Vakil
Got it, sir. So if my understanding is correct, so subcontracting include subcontracting as well as outsourcing, right?
Jagmohan
Yes. Yes.
Dipen Vakil
Got it.
Jagmohan
Yeah, that’s correct. So one more thing you need to keep in mind is that for the larger ships, let’s say, 15 and 17 Alpha which are very, very-high value projects, then it makes sense for us to use our manpower, which is a little more expensive than subcontract manpower. So whereas the smaller projects like the export project and the 21 ships that we’re doing for ships, it is better to do a subcontract model. And that is why since of course, like what Director just said that since we have 27 ships and another three large ships that are presently on order, we have resorted to a little extensive subcontracting and that’s why the subcontracting costs are higher.
Dipen Vakil
Got it, sir. Got it. Thank you so much for answering my questions and all the best for FY ’26.
Jagmohan
Thank you.
Operator
Thank you. Next question is from the line of Deepak Rashnan from Kotak Institutional Equities. Please go-ahead.
Deepak Krishnan
Hi, sir. I hope I’m audible. I just wanted to check one thing on the next-generation order. Are we sort of — are we active on the order? Are we L2 or is that an order that we’ve sort of given across,
Jagmohan
The bids are open and I think it’s gone to GRSE and GSL and not to MDL
Deepak Krishnan
Sure, sir. That was my question and thank you for the clarification
Operator
Thank you. Thank you. The next question is from the line of Anirud from Continental. Please go-ahead.
Anirudh Murarka
So I just wanted to ask regarding that the subcontracting, which I think the leader participant has already — the management has already answered. But my only thing is that it’s in this subcontract which we have made a very-high expenditure so is that in future it is getting reversed or it is a fixed expenditure.
Jagmohan
It’s a fixed expenditure.
Deepak Krishnan
Okay, sir. Okay. Thank you.
Operator
Hello. Thank you. The next question is from the line of Sanjee Zarbadi from Antique Stock Broking. Please go-ahead.
Sanjeev Zarbade
Yes, sir. Am I audible?
Jagmohan
Yes.
Sanjeev Zarbade
Yes, sir. Thanks for taking my question.
Jagmohan
Sir. Please speak a little louder.
Sanjeev Zarbade
Yeah. My question was regarding the revenue bookings. So if we are able to win the two large orders for submarine, FY ’27 may not have much of order book — revenue booking, but could FY ’28 we might see up to 10% of our revenue booking from these two orders.
Jagmohan
FY ’28 may be a little too distant away, but definitely for FY ’26, we can confidently say, yes, we’ll be 10% more.
Sanjeev Zarbade
No, no, sir, I’m asking about the revenue contribution from the two large submarine orders. That means.
Jagmohan
Okay. So what is the question?
Ruchir Agrawal
It will depend upon cost of production and this will depend upon how fast we are getting orders and their execution taking place. Because first of all, after getting the orders, everything is on the — only on the drawing board. There is a preparatory for precing the design as well as for procurement. So the revenue recognition will come only after the start of production and as equipment goes on-board.
Jagmohan
But you are right, if that is a question, FY ’28 definitely at least the P75 additional submarines revenue will start to kick-in, yes.
Sanjeev Zarbade
So could it be around 10% of the order value or lesser than that?
Jagmohan
Yes, you could say that because we are — this P75 AS project is a repeat of the P75 project, which have already delivered to the Navy. And we have already commenced some kind of a preparatory work. So I think confidently, we can say, yes, yes, we will contribute — it will contribute 10% of the order book of 75AS will contract value of 75AS will come in as a revenue for FY ’28.
Sanjeev Zarbade
Okay. And sir, my next question was regarding the 317A in which we have pending order book of INR13,493 crores. In what time-frame is it Q table, sir? Sir and in what in terms of — and also…
Jagmohan
Yeah, we are delivering the second ship the next month and the third ship — there are four ships. One has already been delivered. The second ship will be delivered next month. The third ship will be delivered maybe in the month of November and the fourth ship will be the only one pending in the next financial year that also we expect to deliver by April ’25 — April 26
Ruchir Agrawal
And the guarantee liabilities associated with this project will extend up to 2027. So this what is balanced shown will progressively get liquidated in that timeframe.
Sanjeev Zarbade
So bulk of this INR13,493 crore will get booked in terms of revenue in FY ’26 and ’27,
Ruchir Agrawal
In the next two years. That’s right.
Sanjeev Zarbade
Two years. Okay. And sir, we have — although we have delivered P15 B and P75 — there is INR3,700 crore order backlog and INR2,700 crore order backlog in these two projects, which we have already delivered. So what is if you see
Ruchir Agrawal
15 Bravo, we have 37, 16 has been — so there also the liabilities are not at over. So we keep that for future contingencies, if any, because depending on the operational needs of the ship, we need to — some expenditure has to be incurred. So two to three ships are still under guarantee.
Jagmohan
And in addition, we have to deliver the base and spares to the Navy, that’s also a significant amount. But those also we expect considerable amount to get this year and maybe the beginning of the first-half of the next financial year.
Sanjeev Zarbade
So sir, this INR3,700 crore, it will get booked in one or two years or this will be —
Jagmohan
Which one can you repeat?
Sanjeev Zarbade
This INR3,700 crore croress.
Operator
I’m sorry to interrupt you, Mr Sanjay, you are sounding very low, sir. Can you speak a bit louder?
Sanjeev Zarbade
Yeah. Sir, I wanted to know about the order pending in the Q2 orders of Coast Guard and the Denmark order. How much is the outstanding value over there, sir?
Jagmohan
I think see that delivery I think is in 2029, if I’m not wrong, the last ship gets delivered. So the revenue will be split-up to FY 2029. Actually FY ’30
Sanjeev Zarbade
For the — the order value for the two orders that you mentioned for which we have booked provision for the Denmark, what is the outstanding?
Jagmohan
That will be put together around INR3,500 crores.
Sanjeev Zarbade
Okay, okay. And to be delivered over next four years.
Jagmohan
So FY 30,
Ruchir Agrawal
2930 30.
Sanjeev Zarbade
Okay, okay, okay. Okay, sir, if I have more questions, I’ll come back.
Operator
Thank you. Okay. Thank you. The next question is from the line of from Canada HSBC Life Insurance. Please go-ahead.
Chinmay Gandre
Yeah, thank you for taking my question.So most of the question has been answered. Just on the P75 high, so what is the stage right now like we are discussing commercials is what you mentioned? I just wanted to get on that.
Jagmohan
So see, we are our technical offer has been accepted by the Navy and MOD and The commercial negotiations were just supposed to start then after that we have not heard yet. So we are in the early phases of the commercial negotiations for the project. Once the commercial negotiations conclude, then the contract will be signed.
Chinmay Gandre
And regarding the class submarine, I mean, more or less we thought that we should get it by last year itself. So I mean, so this operational related delays or anything else should we read in that?
Jagmohan
I mean it is — finally the contract is signed with the Ministry of the Minister of Defense and the Government of India. So there are some procedural delays perhaps. So it’s not entirely in MDL’s hands. So, but we expect that it will conclude shortly.
Chinmay Gandre
Sure. And lastly, I mean in terms of the deliveries you mentioned about the P17A frigates and these are pretty good margin orders, which you also kind of mentioned. So I mean, broaden broadly because we are going to deliver three of them or the other two of them in the coming fiscal year rather FY ’26 per se. I mean, then ideally the PBD margin should be much better than the 15% guidance which kind of alluding to.
Jagmohan
Yeah, we hope so. We would like to under-promise and over-deliver. So — but we would like to keep the guidance at 15%, which is the — which is considered to be good for a shipyard. But we are hopeful that we will do better.
Chinmay Gandre
Okay, thank you. That’s it from my side.
Operator
Thank you. The next question is from the line of Atul Tiwari from JPMorgan. Please go-ahead.
Atul Tiwari
Sir, just one question on the contract structure. So for — for your fixed-price contract, do you get some kind of raw-material escalation over the life of the execution of contract?
Jagmohan
So we have to procure all the raw-material. So the raw-material costing is a part of the overall project cost and the shipyard does the procurement.
Atul Tiwari
Yeah, but I mean, obviously, these contracts can go on for four, five years, right? So do you procure everything at the beginning itself or do you keep on procuring over four, five years?
Jagmohan
We do the procurement and the negotiations with the supplier at the early stages. However, we ensure that the delivery is staggered so that the inventory is controlled and the costs are minimal to the shipyard.
Atul Tiwari
Oh, so you lock-in all the raw-material cost at the beginning itself in most?
Jagmohan
Yes.
Atul Tiwari
Okay, okay, good. Thank you.
Operator
Thank you. We’ll take our next question from the line of Rahul Arvind Padakar, an Individual investor. Please go-ahead.
Rahul Arvind Patekar
Hello. Thanks for the opportunity. I just wanted to ask, sir, about this delay in contract that we’re considering. So are we also considered to add additional cost that would — we may incur so that we don’t have to do any provisioning? And the second question is that I see that the most of these orders are coming from either from MOD or Indian Navy. Are we also considering to go outside commercial and bid for those shipbuilding efforts? Thank you. Thank you.
Jagmohan
Yeah, first is we are making efforts to diversify and towards that you will see that we have already got a significant amount of contracts from the offshore segment from ONGC. Our order book from ONGC is approximately INR6,500 crores. And from commercial shipbuilding is the multipurpose vessel which we have got from a European client, which is approximately INR715 crores. So that is our attempts to diversify away from the single client of MOD. With regard to what was the first part of the question?
Yeah, yeah, you see the present fully covers all known risks then so
Ruchir Agrawal
No, if the — if the delay — if the signing of the contract get delayed, we don’t get any additional compensation for that.
Rahul Arvind Patekar
Okay. Thank you.
Operator
Thank you. We’ll take our next question from the line of Gagan from ASK Investment Managers. Please go-ahead.
Gagan Thareja
Yeah, good evening. I hope I’m audible. Yeah, go-ahead. Sir, the first question pertains to your other expenses and project-related expenses, which are also fairly elevated on a year-on-year basis. Can you elaborate on why that is the case?
Jagmohan
See, it is — it is as probably it is not depending upon the project life-cycle. Since around 27 ships are at the early stages of construction, the entire procurement of material would have happened. So although I don’t have the exact figures with me, but it is quite likely because it is at some order — it’s also possible that some of the large orders of 17 alpha we must-have procured the B&D spares or the base and depost spares, which comes to approximately 15% of the project cost. So that could be the reason for the increase in cost.
Gagan Thareja
Okay. And is it possible for you to — I mean, I’m referring to your — the order book details mentioned in your presentation, is it possible for you to give us broad delivery timelines of at least the large-sized orders within the order book, which are outstanding? And also give an idea of broadly over what time can you fully invoice the current order book that you have.
Jagmohan
So see 15 Bravo, as we just discussed, we intend to finish this balance INR3,700 crores by FY ‘2827 8, 27 28 and the sales frigates may be ’29, because there’ll be a small portion, but the majority we will intend — we will complete by ’27 and maybe a little portion of the base and deposits and the guarantee liabilities will be there. The Coast Guard projects and the multipurpose vessel we will complete by FY ’30. FY ’29-30 will complete. The P75 is INR2,400 crore we should be able to complete maybe by FY majority by FY ’26 and maybe first-half of FY ’27.
The MRLC, we should be able to complete this maybe FY ’27 — mid-FY ’27. The ONGC projects also we expect to complete majority of it by end of FY ’27. The AIP project will take some time because the — some of the deliverables from DRDO is expected to be delayed. And anyhow it’s a 42-month contract. So that’s it.
Gagan Thareja
No, I understand that deliveries and the timelines might extend into ’28 and ’29, but would it be a reasonable surmise that a large portion of the outstanding order book can be invoiced over the next two years. Some parts may, you know, extend beyond the next two years, but largely we booked them.
Jagmohan
But out-of-the 32,000, maybe almost INR24,000 crores next two years, next two years.
Gagan Thareja
Okay, so 24,000 can be. And you generally, you know, have a sort of arrangement on turnover — turnover targets with the MOD. Have they been finalized for FY ’26 and can you therefore convey to us?
Jagmohan
Yeah, we have finalized it, but I’m not sure whether it is — can be given to public. So there are figures both on-top line and bottom-line and other parameters, including R&D expenditure. I’m not sure whether we can make it public.
Ruchir Agrawal
It’s currently under discussion. We’ll be able to —
Gagan Thareja
Because you disclosed it in your annual reports, at least the turnover if I in the past you have indicated that on the Culveri class submarine, you know there were some cost escalations for which you got compensation from the Navy for at least three of the submarines and one or two were pending, I think INR140 crores of perhaps provisions needed to be written back. I have — is it still the case or — and do you expect to book it in the coming two quarters?
Jagmohan
See, we have, you know, made provisions for liquidated damages the submarines and I think we have got you know it has come back to us for I think four, four, four submarines. We expect that there’s only the first boat that the LD and has not been reversed, which we expect that this financial year, we should be able to reverse It. But that of course is a decision that MOD will take, but we anticipate that we will be getting the liquid damages reversed for at least once upon in this financial year.
Gagan Thareja
And was anything booked in Q4 from this or no?
Jagmohan
No, no, not for — not for these. That were already efficient in the last financial year or the year before that?
Gagan Thareja
Okay. And I think there was also an indication at least in the past calls that you know as the projects come closer towards you know final delivery there is a reassessment of your D448 liabilities and you know if you are able to deliver on-time or before time you could actually incur cost-savings. Is that potentially the case with some of the deliveries due for next year and therefore, do you stand to benefit from that?
Jagmohan
But what I can tell you is what has happened in the recent past, all the four 15 Bravo destroyers were delivered ahead of schedule and the shipyard has benefited because of the early deliveries.
Gagan Thareja
Right, sir. The final question from my side, your — the mastership repair agreement that you have with, I think the US Navy since signing, I mean, do you foresee any commercial contribution starting from that in the near-future or is it still some distance are we?
Ruchir Agrawal
Yeah. So. So we are still one of the contenders. But the issue is the vessels that are coming for repairs, some of them are large and that will not fit into our current infrastructure. So we will participate in that signed agreement only for office which can be accommodated within our promises. So a couple of offers which had come, we couldn’t participate because of this
Gagan Thareja
Okay. Okay. Fine. Thanks, sir. Thank you. I’ll get back-in the queue. Thanks for taking my questions.
Operator
Thank you. Thank you. Ladies and gentlemen, we request you to please limit your questions to two per participant. The next question is from the line of Raj Rishi from DCPL. Please go-ahead.
Raj Rishi
Yeah, thanks for the follow-on question. Any plans for a tie-up with the Korean shipyard or something because some news reports suggest that some tie-ups are on the anvil with Indian shipyards?
Jagmohan
See the Ministry of shipping is trying to promote ship building within the country and it’s actually much-needed and they are planning to have four large clusters by 2030 and operational by 2035. And we — the Ministry of Shipping is looking at large shipyards like us to tie-up with some major shipyards, global shipyards. We are at the very, very early stages of examining these, but we will keep our options open wherever we are presented with good business opportunity.
Raj Rishi
And the previous person was asking about this mastership agreement you have with the US and the answer was that you could not accommodate the — because it was much larger than what you can accommodate. You expect any business from on this front in the future?
Ruchir Agrawal
This is a large US fleet which is based out of Singapore service in the international region. So most of this vessels are largely can come see there is a draft limitation also in our. So that is why that we are unable to accommodate. So it’s only a very small subset of the entire fleet, which can come here. And when those things are repair, that’s the time where we’ll have the opportunity to participate. That’s what I mentioned.
So right now, I don’t see anything in the offering in the immediate future.
Raj Rishi
And so what’s the export potential business for MDL in the next one or two years?
Ruchir Agrawal
Right now we already have an order done by CMD for six vessels, INR715 crores. If everything goes on well, there is an optional cost also in that where they will order more ships. So — but that will depend on how we are able to deliver these ships in time and within the contracted cost. So that is a call which we’ll have to take later. The potential, half.
Raj Rishi
Yes, sir.
Ruchir Agrawal
No potential is there for orders. These are the and sir,
Raj Rishi
Your collaborator for P75 I think Tyson Group was talking about making India a hub for submarines. So you expect MDL also to benefit?
Jagmohan
Yes, of course this — our collaboration with them is for the P75i project for hello. The significant amount of transfer of technology and indigenization, there will be more than 60% of indigenous content in this submarine, much higher than what we have done for the scorpion project.
Raj Rishi
So project your voice is breaking. Hello, hello
Operator
Please give me a moment, sir
Hello, hello, ladies and gentlemen, please stay connected. The line of the management has been disconnected ladies and gentlemen, we have the management line reconnected. Over to you, sir.
Jagmohan
Yeah, please go-ahead
Operator
Please go-ahead with your question.
Raj Rishi
Yeah, the question was Tyson Crop has talked about making India hub for submarines and they are your collaborator, how do you stand to benefit from this if it happens?
Jagmohan
First, this is a part of the P75i project and we will be constructing these six submarines for the Indian Navy in collaboration with Tyson Group. And the contours of the contract is that Tyson Group will significantly transfer technology in the design and construction of these conventional submarines. So the indigenous component will be high. So MDL will straight a benefit on these contracts. Notwithstanding that, once we gain the know-how in the design and construction of these submarines, we will also benefit in both maintenance of these submarines which are in-service in the navies all over the world as well as has said that when they get export orders, particularly in Asia and South America, they will look at constructing it in MDL for their global orders.
Okay. So there’ll be a twofold benefit for MDL from this collaboration with TKMS.
Raj Rishi
It sounds very significant, sir, this whatever you have said right now.
Jagmohan
Yes, it is.
Raj Rishi
Okay. Okay. Okay. Okay. Thanks a lot.
Jagmohan
Yeah.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Ms Yoti Gupta for closing comments.
Jyoti Gupta
Thank you. On behalf of Bang Institutional Equities, I would like to thank the management of Builders Limited for the call. And I also extend my gratitude to the participants for joining the call., you may now close the call. Thank you, sir.
Jagmohan
Thank you very much.
Operator
Thank you. Thank you. On behalf of Nirmal Bang Institutional Equities, that concludes this conference. Thank you for joining us and you may now disconnect your lines.