Garden Reach spurts after new order win

Garden Reach Shipbuilders & Engineers surged 10.99% to Rs 105.05 at 12:05 IST on BSE after the company entered into a contract with the Government of India for construction of Swallow Water Craft.

The announcement was made yesterday, 29 April 2019. Domestic stock markets were closed on Monday, 29 April 2019, on account of General Elections (Lok Sabha).

Meanwhile, the S&P BSE Sensex was down 169.71 points, or 0.43% to 38,897.62

On the BSE, 18,000 shares were traded in the counter so far compared with average daily volumes of 1,514 shares in the past two weeks. The stock had hit a high of Rs 113.50 and a low of Rs 103.80 so far during the day.

Garden Reach Shipbuilders & Engineers said that the company has entered into a contract with the Government of India, Ministry of Defence, for construction and delivery of eight ASW Swallow Water Craft at an estimated cost of Rs 6311.32 crore, under fixed price basis. The first ship is to be delivered within 42 months from the contract signing date i.e. 29 April 2019. The subsequent ships are to be delivered at two ships in a year basis from the delivery of the previous ship. The project is expected to be completed within 84 months from the date of signing of the contract.

Garden Reach Shipbuilders & Engineers' net profit rose 752.18% to Rs 44.91 crore on 102.49% rise in total income to Rs 530.09 crore in Q3 December 2018 over Q3 December 2017.

Garden Reach Shipbuilders & Engineers, a mini ratna (Category-I) PSU from 2006, is a ship builder under the administrative control of Ministry of Defence and caters to the shipbuilding requirement of Indian Navy and Indian Coast Guard. Engineering and engine production services are also offered.

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