In Tuesday’s early session, shares of one of India’s premier warship-building fir jumped up to 3.7 percent to ₹849 per share, a day after the company signed a Memorandum of Understanding with the Indian Register of Shipping to build autonomous vessels.
At 11:20 a.m., on Tuesday, the shares of Garden Reach Shipbuilders & Engineers Ltd. were quoted at ₹829 a share, up ₹9.95 or 1.21 percent on the National Stock Exchange, The company has a market value of ₹9,493 crores.
On March 2, 2024, Garden Reach Shipbuilders & Engineers Ltd. (GRSE) and the Indian Register of Shipping (IRS) formalized their collaboration by signing a Memorandum of Understanding (MoU). The agreement focuses on the joint development of environmentally friendly energy solutions and autonomous vessels to advance the maritime industry.
The primary objective of the collaboration is to jointly pursue and execute contracts for the development of autonomous and green energy vessels, leveraging the complementary capabilities of GRSE and IRS. The IRS will provide specialized expertise and guidance towards the development of autonomous and green energy vessels, ensuring compliance with evolving safety standards and regulatory requirements.
The strategic partnership will harness advanced technologies and expertise in the maritime sector. Through this MoU, both entities aim to pool their strengths and resources to drive innovation and excellence in vessel design and development. The company reported in its exchange filing.
Garden Reach Shipbuilders & Engineers shares have delivered a return of 89 percent in a year.
The company has maintained strong return ratios with a 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.
The company’s order book as of September 30, 2023, stands at ₹ 23,739.59 crores, including projects for the Indian Navy, the Government of Bangladesh, and the DRDO.
As per the latest shareholding pattern, The Garden Reach Shipbuilders & Engineers promoters hold a 74.5 percent stake in the company, while foreign institutional investors hold 2.86 percent and retail investors hold 16.61 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.
Year on year, there was a significant 32 percent increase in companies’ revenues, climbing from ₹699 crores in Q3FY23 to ₹923 crores in Q3FY24. During the specified period, the net profit also saw a notable 37.5 percent growth, rising from ₹64 crores to ₹88 crores.
Written by Omkar Chitnis
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