shares of one of India’s premier warship-building firm gained 2 percent to reach an intraday peak of ₹796.05 per share after the company signed a contract with the Ministry of External Affairs to supply patrol vessels.
At 11:30 a.m., on Tuesday’s trade, Garden Reach Shipbuilders & Engineers Ltd shares were trading at ₹784.85 per share, up 0.57 percent from the previous close price on the stock exchange. The company has a market capitalization of ₹9,030 crore.
According to the company’s filing, The company signed a Contract with the Ministry of External Affairs {MEA), Govt. of India for a short refit of the Seychelles Coast Guard Ship Zoroaster, a fast Patrol vessel that was constructed and supplied by Garden Reach Shipbuilders to the Government of Seychelles. For a total contract value of ₹26.45 crore.
The company experienced significant growth in its annual revenue, with a 32 percent increase from ₹699 crores in Q3 FY23 to ₹923 crores in Q3 FY24. Additionally, there was a noteworthy rise in net profit, which surged by 38 percent, from ₹64 crore to ₹88 crore during the corresponding period.
Garden Reach Shipbuilders & Engineers’ shares have surged by 94 percent over the past year, but have seen a 7 percent decrease 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.
In addition to shipbuilding, GRSE as a diversified organization, is also engaged in engine overhaul, assembly & testing, and other engineering activities. The engineering division manufactures deck machinery items, pre-fabricated portable steel bridges, and marine pumps.
The company’s revenue distribution spans various segments, showcasing a diverse and robust business portfolio. Shipbuilding stands out within the Contract Revenue segment, contributing significantly with ₹2,301.97 crore. Ship Repair and General Engineering components within Contract Revenue also make notable contributions.
In the Sale of Products segment, revenue amounts to ₹175.98 crore, with B & D Spares and Bailey Bridge showing strong demand. The Sale of Services segment, generating ₹45.87 crore, is dominated by Ship Repair services, followed by Bailey Bridge and Diesel Engines service.
The company’s robust order book, which includes the ongoing order of 19 warships for the Indian Navy, is in line with government initiatives aimed at fostering self-reliance in defense.
Written by Omkar Chitnis
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