Garden Reach Shipbuilders Q2 Results: Profit Jumps 21%, Beats Estimates
GRSE's margin expanded to 6% versus 5.4% in the year-ago period.
Garden Reach Shipbuilders & Engineers Ltd.'s consolidated net profit rose 21% in the quarter ended September, beating analysts' estimates.
The defence aerospace company posted a profit of Rs 97.8 crore in the July–September quarter of the current financial year, compared to Rs 80.7 crore in the year-ago period, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had a consensus estimate of Rs 87 crore.
GRSE Q2 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 28% to Rs 1,152.9 crore versus Rs 897.9 crore (Bloomberg estimate: Rs 915 crore).
Ebitda up 41% to Rs 68.7 crore versus Rs 48.8 crore (Estimate: Rs 60 crore).
Margin expands 60 basis points to 6% versus 5.4% (Estimate 6.5%).
Net profit up 21% to Rs 97.8 crore versus Rs 80.7 crore (Estimate: Rs 87 crore).
Last week, GRSE laid the keels, marking the beginning of the construction of two next-generation offshore patrol vessels. The Kolkata-based defence PSU is building four NGOPVs for the Indian Navy and these are the first two of those.
Earlier on Oct. 18, the company had received a letter of intent for a Rs 491-crore order for an acoustic research ship from the Ministry of Defence. The project involves design, construction, certification, commissioning and supply of the acoustic research ship. It is to be executed within 36 months from the signing of contract.
Shares of GRSE closed 5.36% lower at Rs 1,384.20 apiece on the NSE, compared to a 1.36% decline at the benchmark Nifty 50. The stock has risen by 58.51% on a year-to-date basis and 80.07% in the past 12 months.
Two out of the four analysts tracking the company have a 'buy' rating on the stock and as many recommend 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential upside of 14.8%.
