As per the Ministry of Shipping, an overwhelming 95% of India’s trade by volume and 70% by value is conducted via sea transport. With its 12 major ports and more than 200 notified minor and intermediate ports, India holds a prominent position in the global maritime industry.
Amidst this vibrant sector, Garden Reach Shipbuilders & Engineers Ltd has carved out a reputation for reliability. This shipbuilding firm, based in Kolkata, has been leading the charge in India’s maritime defence sector, supplying state-of-the-art warships and auxiliary vessels to the Indian Navy and Coast Guard.
The article aims to provide an in-depth analysis of the remarkable Garden Reach Shipbuilders & Engineers Q4 results and the subsequent surge in its share price by 20%.
Also read: Shipping and port industry in India
About Garden Reach Shipbuilders & Engineers Ltd
Garden Reach Shipbuilders & Engineers Ltd (GRSE), under the Ministry of Defence’s administration, is a top-tier shipbuilding firm in India. Its origins trace back to 1884 when it started as a modest workshop for repairing River Steam Navigation Company vessels. Since then, GRSE has grown into a prominent shipyard, delivering over 100 warships to the Indian Navy, Indian Coast Guard, and the governments of Mauritius and Seychelles.
The fundamental objective of GRSE is to cater to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. Thanks to its state-of-the-art shipbuilding facilities and a robust team of multidisciplinary design engineers, GRSE can concurrently construct 20 ships. The product portfolio of GRSE is comprehensive, including a variety of vessels such as frigates, corvettes, fleet tankers, landing ship tanks, landing craft utilities, survey vessels, offshore patrol vessels, and fast attack crafts.
Beyond shipbuilding, GRSE has branched out into the engineering sector. The company produces pre-fabricated steel bridges, various deck machinery items, and marine pumps. These bridges, primarily utilised for disaster management, have been provided to entities such as the Indian Army, Border Road Organisation, State Public Works Departments, and Central Governments.
GRSE has also achieved significant progress by successfully integrating a high percentage of indigenous equipment into the ships being built for the Indian Navy and Indian Coast Guard.
Garden Reach Shipbuilders & Engineers Ltd CSR
Garden Reach Shipbuilders & Engineers Ltd (GRSE) is more than just a prominent player in the shipbuilding sector; it’s also a conscientious corporate entity dedicated to societal progress. Under its Corporate Social Responsibility (CSR) banner, GRSE has embarked on numerous projects to enhance the living conditions of society’s disadvantaged groups.
These CSR initiatives encompass a wide range of areas, including healthcare, education, skill development, Swachh Bharat campaigns, environmental conservation, and the upliftment of marginalised communities.
For example, GRSE has made substantial contributions to the Swachh Bharat Mission, including donations to the Swachh Bharat Kosh, Clean Ganga Fund, and the organisation of Swachhta Pakhwada events. Furthermore, GRSE champions comprehensive development programs for tribal children, offering them nutritional supplements, health education, and sporting activities.
Through these endeavours, GRSE is committed to fostering sustainable societal development and contributing to nation-building.
Garden Reach Shipbuilders & Engineers Ltd quarterly performance
Here are some of the principal financial indicators of Garden Reach Shipbuilders & Engineers Q4 results performance in comparison to the preceding quarter:
| Q4 FY24(₹ crores) | Q3 FY24(₹ crores) | Change(%) | |
| Revenue | 1,016 | 923 | 10.07 |
| Operating profit | 91 | 49 | 85.71 |
| Profit before tax | 153 | 119 | 28.57 |
| Net profit | 112 | 88 | 27.27 |
| EPS | 9.74 | 7.70 | 26.49 |
In the quarter ending March 2024, GRSE’s net profit saw a significant increase, more than doubling to ₹111.60 crore. This is a substantial rise of 101.8% when compared to the net profit of ₹55.30 crore reported in the same period the previous year.
Also read: Bharat Electronics’ financial milestone: Q4 result and share price analysis
Garden Reach Shipbuilders & Engineers Ltd annual performance
Here are the principal financial metrics of the company, in comparison with the figures from the previous year:
| FY2024(₹ crores) | FY2023(₹ crores) | Change(%) | |
| Revenue | 3,593 | 2,561 | 40.30 |
| Operating profit | 234 | 153 | 52.94 |
| Profit before tax | 481 | 305 | 57.70 |
| Net profit | 357 | 228 | 56.58 |
| EPS | 31.19 | 19.91 | 56.65 |
From an operational perspective, the Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) experienced a substantial rise, more than tripling to ₹90.5 crore during the quarter. This represents a significant increase when compared to the EBITDA of slightly over ₹20 crore that was reported during the same period in the previous year.
Garden Reach Shipbuilders & Engineers Ltd is setting its sights on a revenue growth projection, aiming for a substantial increase of 20% – 25% over the next two years.
Also read: Q4 update: Kamat Hotels India Ltd performance details
Market reaction
Garden Reach Shipbuilders & Engineers Q4 results were released on May 23, 2024. In the aftermath of the results, Garden Reach Shipbuilders & Engineers Ltd’s share price skyrocketed by 20% to ₹1,431.10 on Thursday, reaching a new 52-week high. The stock had ended the previous trading day with a closing price of ₹1,192.60.
The significant rise in the stock price is vividly illustrated in this chart, which depicts the trading pattern of the stock over the previous five days.
Garden Reach Shipbuilders & Engineers Ltd’s shares have given a return of 1,123.40% over the last 5 years.
Peer analysis
Let’s compare the key financial ratios of Garden Reach Shipbuilders & Engineers Ltd with that of its competitors:
| Company | CMP (₹) | Market cap(₹ crores) | P/E | Earnings Yield (%) |
| Garden Reach Shipbuilders & Engineers | 1463.80 | 16,909 | 47.4 | 3.88 |
| Mazagon Dock Shipbuilders | 3,228 | 65,095 | 43.1 | 4.09 |
| Cochin Shipyard | 1,990 | 52,362 | 95.6 | 1.64 |
Bottomline
The significant rise in GRSE’s quarterly and annual profits highlights its capacity to seize market opportunities and provide value to its stakeholders. The market responded enthusiastically to GRSE’s Q4 results, as demonstrated by the 20% increase in the company’s share price, which hit a new 52-week high.
Beyond its financial and operational prowess, GRSE’s dedication to Corporate Social Responsibility (CSR) initiatives emphasises its commitment to societal advancement and sustainable growth.
Garden Reach Shipbuilders & Engineers Ltd distinguishes itself as a pivotal contributor in India’s maritime sector, boasting a solid financial performance, strategic market presence, and a profound dedication to societal progress.
