Business

IIE DIGITAL DESK : May 14, 2025 – Shares of Garden Reach Shipbuilders & Engineers Ltd. (GRSE) soared over 14% on Wednesday after the state-owned defence shipbuilder reported a significant increase in its fourth-quarter net profit, driven by strong revenue growth and improved operational efficiency. 

The company's net profit for the quarter ending March 31, 2025, more than doubled year-on-year to ₹244.2 crore, up from ₹111.6 crore in the same period last year. This impressive performance was underpinned by a 61.7% rise in revenue from operations, which reached ₹1,642 crore compared to ₹1,015.7 crore in Q4FY24. 

Operating profitability also saw substantial improvement, with earnings before interest, tax, depreciation, and amortization (EBITDA) increasing by 141.8% year-on-year to ₹219 crore. The EBITDA margin expanded to 13.3%, up from 8.9% in the corresponding quarter of the previous fiscal year. 

Following the announcement of these robust financial results, GRSE's share price surged 14.4% intraday to hit a high of ₹2,191.90 on the Bombay Stock Exchange (BSE). Despite this rally, the stock remains approximately 23% below its all-time high of ₹2,834.60, achieved in July 2024. 

Over the past year, GRSE's stock has delivered impressive returns, gaining 111%. On a monthly basis, the stock has been on a strong upward trajectory, rising 13.5% in May, after a 14% gain in April and an impressive 34% surge in March. However, the stock did witness some volatility earlier this year, falling 22.6% in February, and rising marginally 0.5% in January. 

In light of the strong financial performance, the company's board has recommended a final dividend of ₹4.90 per equity share for the financial year 2024-25, subject to shareholder approval at the upcoming 109th Annual General Meeting. The dividend is scheduled to be paid within 30 days of its declaration. 

Cmde Hari PR, IN (Retd), Chairman and Managing Director of GRSE, expressed confidence in the company's future prospects. "Happy to report yet another set of strong numbers. With our strong order book, production maturity of the ongoing projects and order visibility, including in the commercial shipbuilding segment, I am confident of even better performance during the current financial year," he stated.  

GRSE's robust performance in the fourth quarter underscores its position as a key player in India's defence shipbuilding sector, reflecting the company's strategic focus on enhancing operational efficiency and capitalizing on growth opportunities in both defence and commercial segments.