Garden Reach Shipbuilders Shares Surge 5% After Strong Q3 Results

Garden Reach Shipbuilders Shares Surge 5% After Strong Q3 Results: Revenue and Profit Up

Posted on February 4, 2025 by Niftynews

Garden Reach Shipbuilders & Engineers Ltd (GRSE) has garnered attention after its Q3 financial results revealed strong performance, with a 5% rise in share price. The company posted an 11% increase in net profit (PAT) and a 37.7% increase in revenue, signaling growth and optimism in the Indian shipbuilding industry.


Key Highlights from GRSE Q3 Results

GRSE reported an increase in net profit (PAT) of ₹98 crore, up from ₹88 crore last year, showing an 11% growth. The company also saw a remarkable rise in revenue, reaching ₹1,271 crore, compared to ₹923 crore in Q3 FY24, a 37.7% rise. These results reflect the strength of Garden Reach Shipbuilders, particularly in the defence sector.

  • Net Profit (PAT): ₹98 crore (11% increase YoY)
  • Revenue: ₹1,271 crore (37.7% increase YoY)

The significant growth in PAT and revenue has positioned GRSE as a leader in Indian defence shipbuilding and reflects its growing influence in the global shipbuilding market.


GRSE Stock Performance and Market Outlook

Following the release of its Q3 financial results, Garden Reach Shipbuilders’ share price surged, peaking at ₹1,588.95 on BSE before stabilizing at ₹1,540, reflecting a 2.09% increase. Despite a 0.93% drop in the BSE Sensex, GRSE’s strong performance stood out in a volatile market.

  • Market Capitalization: ₹17,641.01 crore
  • 52-week High/Low: ₹2,834.6 / ₹674.25

This growth demonstrates investor confidence in GRSE’s potential, especially in light of its increasing market capitalization and the defence contracts it has secured.


Optimistic Outlook from GRSE Leadership

Cmde Hari PR, IN (Retd), Chairman and Managing Director of Garden Reach Shipbuilders & Engineers Ltd, expressed confidence in the company’s future: “The Q3 results have been encouraging, and we expect a strong performance in Q4 FY25. With a robust order book and ongoing projects making good progress, GRSE is well-positioned for sustained growth.”

The company is optimistic about securing additional orders in the upcoming months, further strengthening its position in the Indian shipbuilding market.


Interim Dividend Declaration

In recognition of its strong performance, Garden Reach Shipbuilders announced an interim dividend of ₹8.95 per equity share (face value ₹10), totaling ₹102.52 crore. The record date for this dividend is set for February 7, 2025, making it a key opportunity for investors.


About Garden Reach Shipbuilders & Engineers Ltd (GRSE)

Garden Reach Shipbuilders & Engineers (GRSE), a defence public sector undertaking (DPSU), has been a key player in Indian shipbuilding since its inception in 1960. Under the administrative control of the Ministry of Defence, GRSE has built over 790 platforms, including 110 warships for the Indian Navy, Indian Coast Guard, and foreign nations.

The company is renowned for constructing India’s first warship (INS Ajay) post-independence, as well as its first export warship for Mauritius, CGS Barracuda. GRSE continues to contribute significantly to maritime security with fast patrol vessels and cargo ships built for international clients, including Seychelles and Guyana.


Performance Over the Past Year

Over the last year, Garden Reach Shipbuilders stock has surged by 71.8%, significantly outperforming the BSE Sensex, which gained only 7.6% during the same period. This strong stock performance reflects the company’s growing market dominance in the shipbuilding and defence sectors, making it an attractive choice for investors.


Future Outlook for GRSE

Looking ahead, GRSE remains optimistic about its future, bolstered by a strong order book and the ongoing success of its defence contracts. The company is poised to capitalize on increased demand for Indian Navy ships, coast guard vessels, and other defence platforms. Investors can expect GRSE to maintain its upward trajectory, supported by ongoing shipbuilding projects and more orders expected in the coming months.


Conclusion: GRSE’s Strong Performance and Bright Future

In conclusion, Garden Reach Shipbuilders continues to show impressive growth in both revenue and net profit. With a strong stock performance, an expanding order book, and a promising future outlook, GRSE is positioned as a leader in the Indian shipbuilding industry. For investors seeking opportunities in defence stocks and shipbuilding stocks, GRSE’s recent performance makes it a compelling option.

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