Garden Reach Shipbuilders Expects To End Fiscal With Rs 25,000-Crore Order Book

Garden Reach Shipbuilders & Engineers' Chairman and Managing Director, Commodore (Retired) PR Hari expects the company's order book to touch Rs 25,000 crore by the end of the current fiscal, on the back of the new order flows.

Commodore Hari told NDTV Profit that the company’s current order book stands at Rs 24,221 crore and added that the company expects to win two more orders over the next 3–4 months.

“In the next 3–4 months, we expect to sign two more contracts, including three multipurpose research vessels with a European client and two coastal research vessels with the Geological Survey of India,” he said.

The top executive noted that the price negotiations were in progress.

The company's order book will touch Rs 25,000 crore by the end of the current fiscal, he said. “Considering our execution strategy and the current maturity level of our projects, we expect the order book to remain between Rs 23,000 to Rs 25000 crore,” Commodore Hari said.

The GRSE managing director also gave a detailed account of the company’s current order book.

“This (current order book) comprises 42 platforms from 12 projects including 17 warships for the Navy, two specialised search vessels for Indian government research organisations and 14 hybrid and electric ferries for the government of West Bengal as well as 10 export platforms including five multipurpose vessels for a European client,” he noted. 

Commodore Hari further revealed that the company is “eagerly looking forward to the next generation Corvette project".

He elaborated, “This is an eight-ship project for the Indian Navy. The bids have already been submitted and the technical evaluation is in progress. In our appreciation, we expect the price bid to be declared either in December or January. The total size of the order will be Rs 36,000 to Rs 40,000 crore.”

“The L1 shipyard (lowest bidder) gets around Rs 25,000-crore orders. In addition, the Navy and Coastguard are likely to come up next year with RFPs (request for proposals) worth Rs 13,000 crore to Rs 15,000 crore,” he added.

Describing the future plans, the CMD said that the company expects revenue contributions from ship repairs to increase in the next 1–3 years, as that segment provides better margins.

“In ship repair, the margins range from 15–20%. At this juncture, ship repair contributes 3–4% to our order book and revenue. I expect that in 1–3 years, our ship repair segment will take a major leap,” Commodore Hari said.

Garden Reach Shipbuilders and Engineers’ Ebitda margin stood at 16% at the end of the first half of FY25.

Shares of Garden Reach Shipbuilders and Engineers Ltd. closed marginally lower at Rs 1,377 apiece on the NSE. In comparison, the Nifty 50 settled 2.39% higher at 23,907.25.