GRSE shares rally 20% to hit new highs after blockbuster Q4 results

Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) surged about 20 per cent, merely shy of their upper circuit limit, and scaled new highs, during the trading session on Thursday after the company reported a strong set of numbers in the quarter ended on March 31, 2024.

GRSE's net profit more than doubled to Rs 111.60 crore in the March 2024 quarter, compared to a net profit of Rs 55.30 crore in the year-ago period. On a sequential (QoQ) basis, the bottomline increased 26.45 per cent from Rs 88.25 crore reported in the December 2023 quarter.

The defence company's revenue from operations grew 68.8 per cent on a year-on-year (YoY) basis to Rs 1,015.72 crore in the fourth quarter of FY24. The company's revenue came in at Rs 601.66 crore in the same quarter previous fiscal. Ebitda for the quarter rose 84 per cent YoY to Rs 166 crore, it said.

Following the results, shares of Garden Reach Shipbuilders & Engineers Ltd surged 19.65 per cent to Rs 1,424.80 on Thursday, hitting a new 52-week highs, commanding a total market capitalization of more than Rs 16,000 crore. The scrip had settled at Rs 1,190.95 in the previous trading session Wednesday.

Shares of GRSE have surged about 220 per cent from its 52-week low at Rs 448.05, hit a year ago. The stock has surged more than 50 per cent in the last one month, while it is up about 1,100 per cent in the last five-year period. The company was listed in October 2018.

For the entire financial year 2023-24, GRSE reported a 57 per cent growth in the net profit at Rs 357 crore, while revenue from operations jumped 40 per cent to Rs 3,593 crore. Ebitda for the fiscal grew 52 per cent to Rs 534 crore, while earning-per-share (EPS) rose to Rs 31.19 for the year.

Cmde Hari PR, (Retd)l, Chairman and Managing Director, Garden Reach Shipbuilders & Engineers Limited said, "Happy to report a strong set of numbers, with both our Revenue from Operations and Profit after Tax reaching new heights. Backed by a strong order book and with our ongoing projects at a maximum revenue recognition phase, and also with more orders on the anvil."

"We are confident of sustained growth in the coming years too. Our focus continues to be on timely execution of ongoing projects and new technology adoption with specific impetus on development of autonomous and green energy platforms," he added.

Garden Reach Shipbuilders & Engineers is a premier warship building company, under the administrative control of the Ministry of Defence. Its journey dates back to 1884 when it started a small workshop to repair vessels of tiver steam navigation company. It was taken over by the Government of India in 1960.

"The board of directors of the company has recommended a final dividend of Rs 1.44 per equity share, in addition to interim dividend of Rs 7.92 per equity share paid, for the Financial Year 2023-24, subject to the approval of the shareholders at the ensuing annual general meeting (AGM) of the company," the filing said.