The shares of this leading Warship builder gained 1.5 percent to Rs 790.95 per share on Friday after the company received a Letter of Intent from the National Centre for Polar and Ocean Research (NCPOR).
At 10:45 a.m., Garden Reach Shipbuilders & Engineers Ltd. shares were trading at Rs 788.35 a share, up Rs 9.20 or 1.18 percent on the National Stock Exchange, with a market value of Rs 9,012 crores.
According to the company’s exchange filing, the Company received a letter of intent from the National Centre for Polar and Ocean Research (NCPOR) for the Construction and Delivery of an Ocean Research Vessel. The total contract value is around Rs 840 crore including taxes. A detailed contract is under finalization and is yet to be signed.
Garden Reach Shipbuilders & Engineers revenue has increased by 30 percent year on year, from Rs 579 crore in Q1FY23 to Rs 755 crore in Q1FY24. During the same period, Net profit has jumped by 52 percent from Rs 50 crore to Rs 76 crore.
The Company’s return on equity increased from 15.06 percent in FY22 to 16.13 percent in FY23, while the return on capital employed rose from 19.31 percent to 20.30 percent during the same period.
In the recent financial year, the company reported a Net profit margin of 8.90 percent and an operating profit margin of 12.17 percent.
According to the recent shareholding pattern, The Garden Reach Shipbuilders & Engineers promoters hold 74.5 percent of the company, while Foreign institutional investors hold 3.34 percent and retail investors hold 16.2 percent.
Garden Reach Shipbuilders & Engineers Ltd is a leading shipbuilding company in India under the Ministry of Defence. The company primarily serves the shipbuilding requirements of the Indian Navy and the Indian Coast Guard, For the development of anti-submarine warfare corvettes, survey vessels, offshore patrol vessels, etc.
Written by Omkar Chitnis
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