Ruchit Jain
Sachin GuptaStock in Action – JK papers
by
Tanushree Jaiswal
14th Jun 2024
Stock in Action – GRSE
Tanushree Jaiswal
Last Updated: 23rd May 2024 - 03:57 pm
GRSE Shares Price Movement of Day
Highlights of Article:
1. GRSE Q4 Results 2024 show significant increase with net sales rising 68.96% year-on-year to Rs 1,015.73 crore.
2. Garden Reach Shipbuilders & Engineers reported remarkable 101.81% year-on-year growth in quarterly net profit, reaching Rs 111.60 crore in March 2024.
3. GRSE Share Price Surge was driven by company's strong quarterly performance & impressive financial results, marking 19.65% increase on May 21, 2024.
4. GRSE Financial Performance 2024 highlights 57% growth in net profit for financial year, with revenues jumping 40% to Rs 3,593 crore.
5. GRSE Dividend 2024 announcement includes final dividend of Rs 1.44 per share, adding to interim dividend of Rs 7.92 per share already paid.
Why GRSE Share Price is in Surge?
Garden Reach Shipbuilders & Engineers (GRSE) shares surged due to robust Q4 FY24 financial results. company reported 68.96% YoY increase in net sales to Rs 1,015.73 crore & 101.81% YoY jump in net profit to Rs 111.60 crore. EBITDA rose by 84.24% YoY to Rs 166.48 crore. Positive market response to these strong figures, combined with substantial order book & future growth confidence, propelled stock to new highs.
Q4 Results of Garden Reach Shipbuilders
Quarterly Financial Performance (in ₹ crore)
| Metric | Mar'24 | Dec'23 | Mar'23 | Q-o-Q % Change | Y-o-Y % Change |
| Net Sales | 1,015.73 | 923.10 | 601.17 | 10.03% | 68.96% |
| Other Operating Income | -- | -- | -- | -- | -- |
| Total Income from Operations | 1,015.73 | 923.10 | 601.17 | 10.03% | 68.96% |
| Consumption of Raw Materials | 466.06 | 545.98 | 331.51 | -14.65% | 40.59% |
| Purchase of Traded Goods | 137.72 | 21.39 | 28.63 | 544.24% | 380.90% |
| Increase/Decrease in Stocks | 3.89 | -1.62 | 3.72 | -339.51% | 4.57% |
| Employees Cost | 94.40 | 86.26 | 83.20 | 9.44% | 13.46% |
| Depreciation | 10.41 | 10.44 | 10.02 | -0.29% | 3.89% |
| Other Expenses | 223.09 | 222.38 | 133.66 | 0.32% | 66.90% |
| P/L Before Other Inc., Int., Excpt. Items & Tax | 80.15 | 38.28 | 10.42 | 109.38% | 669.48% |
| Other Income | 75.92 | 81.51 | 69.92 | -6.86% | 8.58% |
| P/L Before Int., Excpt. Items & Tax | 156.07 | 119.80 | 80.34 | 30.24% | 94.21% |
| Interest | 3.26 | 1.13 | 4.04 | 188.50% | -19.31% |
| P/L Before Exceptional Items & Tax | 152.82 | 118.67 | 76.30 | 28.79% | 100.27% |
| Tax | 41.22 | 30.42 | 21.00 | 35.51% | 96.29% |
| Net Profit | 111.60 | 88.25 | 55.30 | 26.45% | 101.81% |
| Basic EPS | 9.74 | 7.70 | 4.83 | 26.49% | 101.66% |
Q4 Results of Garden Reach Shipbuilders Key Highlights:
- Net sales increased 68.96% YoY, indicating robust growth in operations.
- Net profit more than doubled YoY, showing strong profitability.
- EBITDA growth of 84.24% YoY reflects improved operational efficiency.
- Significant YoY & QoQ improvements in financial metrics demonstrate company's strong performance & market confidence.
Additional Information
- GRSE shares have shown exceptional returns, with 50.71% increase over last six months & 153.87% over past year.
- GRSE has recommended final dividend of ₹ 1.44 per equity share, in addition to interim dividend of ₹ 7.92 per share.
- Future growth is backed by strong order book & ongoing projects in maximum revenue recognition phase.
GRSE Q4 of FY24 Conference Call highlights
1. Increasing shipbuilding capacity from concurrent construction of 20 warships to 24 warships by 2025
2. New products & projects: Fully electric vessel for Government of West Bengal, Ocean Graphic Research Vessel, autonomous platforms, commercial shipbuilding orders
3. Future projects: Next Generation Corvettes, Next Generation Survey Vessels, multi-purpose vessels, Landing Platform Dock, Ocean Going Patrol Vessels for Indian Coast Guard
Technology & Indigenization
1. Ability to build Stealth ships like P17 Alpha Stealth Frigate.
2. Emphasis on indigenization with collaborations for Water Jet Propulsion & autonomous platforms.
3. Indian shipyards capable of building submarines: Mazagon Dock, Hindustan Shipyard, & Larsen & Toubro Shipyard.
Future Outlook & Targets
1. Expecting to maintain order book value between 23,000 to 25,000 crore in coming years.
2. Revenue peak expected in FY'25 & FY'26 from current order book.
3. Vision 2030 target of becoming Navratna company with turnover of 10,000 crore by 2030.
Government Expectations & Opportunities
1. Strong bid pipeline with upcoming projects like Next Generation Corvettes, Next Generation Survey Vessels, multi-purpose vessels, & P17 Bravo.
2. Expectations from Government include winning key projects like P17 Bravo & NGC, & successful entry into commercial shipbuilding industry.
3. Commercial shipbuilding opportunities in India due to cost advantages.
Conclusion
GRSE's strong financial performance, strategic growth initiatives, & investor confidence has led to significant surge in its share price.
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