Mazagon Dock Shipbuilders’ (MDL) Q3FY23 performance was 70% ahead of estimates mainly due to the delivery of 5th Scorpene class submarine ‘Vagir’ to the India Navy ahead of time (on Dec 20, ’22). Key points: 1) Revenue grew 17% YoY (7% QoQ) to Rs18.2bn on residual revenue recognition from delivery of submarine; 2) operating efficiencies and lower direct cost booked resulted in EBITDA margin rising to 16.3% (Q3FY22: 13%).