The shares of one of India’s premier warship-building firms gained 4.4 percent reaching an intraday peak of ₹1,034.20 per share after the company received an order worth $16.58 million from the government of Bangladesh.
At 11:05 a.m., on Friday’s trade, Garden Reach Shipbuilders & Engineers Ltd shares were trading at ₹1,004.65 per share, up 1.39 percent from the previous close price on the stock exchange. The company has a market capitalization of ₹11,349 crore.
According to the company’s filing, The company received a Notification of Award from the Government of the People’s Republic of Bangladesh on May 9, 2024, for the procurement of one trailing suction hopper dredger (with a hopper capacity of 1000 m³) and spare parts. This award was accepted by the Company on May 16, 2024.
The total contract value is USD 16,575,210, excluding taxes. A detailed contract is under finalization and yet to be signed by the company.
The company saw substantial growth in its annual revenue, with a 32 percent increase from ₹699 crores in Q3 FY23 to ₹923 crores in Q3 FY24. Additionally, net profit experienced a remarkable 38 percent rise, climbing from ₹64 crores to ₹88 crores during the same period.
Garden Reach Shipbuilders & Engineers’ shares have surged by 95 percent over the past year and a 29 percent increase in the last six months.
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is a premier shipbuilding company in India under the administrative control of the Ministry of Defence, primarily catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. GRSE has built and supplied close to 700 vessels, to carry men and materials, as well as for surveillance of the Coast Line.
GRSE is a diversified organization engaged in shipbuilding, engine overhaul, assembly and testing, and other engineering activities. Its engineering division manufactures deck machinery items, pre-fabricated portable steel bridges, and marine pumps.
The company’s revenue is distributed across various segments, reflecting a diverse and robust business portfolio. Within the Contract Revenue segment, shipbuilding is the most significant contributor, generating ₹2,301.97 crore. Ship Repair and General Engineering also make notable contributions to this segment.
In Q3FY24, the company’s Sales of Products segment, revenue reached ₹175.98 crore, driven by strong demand for B & D Spares and Bailey Bridges. The Sale of Services segment generates ₹45.87 crore, primarily from Ship Repair services, followed by Bailey Bridge and Diesel Engines services.
The company has a robust order book, which includes an order of 19 warships for the Indian Navy.
Written by Omkar Chitnis
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