Shares of Mazagon Dock Shipbuilders soared as much as 10 percent on Thursday after the company reported robust results during the April-June quarter despite input costs doubling.

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At 13:36 IST, shares of the company were trading 8.5 percent higher at Rs 306.95 on the BSE.

The stock has risen for the past five days, up over 12 percent. The scrip saw a gap-up gain of 5 percent and gradually climbed 10 percent higher intraday.

The company reported a strong set of quarterly numbers despite the higher raw material costs. The cost of raw materials consumed shot up to Rs 1,334.97 crore from Rs 600.43 crore a year ago.

On a consolidated basis, revenue from operations stood at Rs 2,230.32 crore during the quarter ended June as compared to last year’s Rs 1,214.24 crore.

Profit came in at Rs 224.78 crore for the quarter, up significantly from Rs 101.60 crore in the corresponding period last year.

Mazagon Dock Shipbuilders is one of India’s leading defence public sector undertaking shipyards under the Ministry of Defence. The company’s main activities are constructing warships and submarines with facilities situated in Mumbai and Nhava.

Two weeks back, a news report had said that the Department of Investment and Public Asset Management (DIPAM) is mulling buybacks in defence PSUs, including Mazagon Dock Shipbuilders.

DIPAM is weighing the capital expenditure plans and dividends of defence PSUs to decide on buybacks, the report had said.

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First Published:Aug 11, 2022 1:36 PM IST