GRSE Q1 results: PAT up 13% at Rs 87cr amid profit margin contracts

Garden Reach Shipbuilders & Engineers Limited (GRSE), a leading public sector warship builder, reported a 13 per cent increase in net profit for the first quarter ended June 2024, reaching Rs 87 crore.

The profit growth was driven by a substantial 34 per cent rise in revenue from operations, which surged to Rs 1,010 crore compared to Rs 756 crore in the same period last year.

Earnings per share (EPS) improved to Rs 7.6, up from Rs 6.6 in Q1 FY24. Despite the profit increase, the company's net profit margin contracted to 8.64 per cent from 10.14 per cent year-on-year.

GRSE chairman and managing director Cmde Hari PR expressed optimism about the company's growth trajectory, citing strong financial results for Q1 FY25. He noted that the company is confident of maintaining its growth trend, supported by a robust order book and effective project execution plans.

"The shipyard is on a growth trajectory, and the Q1FY25 financial results have been very encouraging. Considering our current order book and project execution plan, we remain confident of maintaining this growth trend," Cmde Hari PR said.

To further strengthen its technical capabilities, GRSE signed three memorandums of understanding (MoUs) with various companies last month.

These include an agreement with Hyderabad-based Medha Servo Drives for the joint manufacture of advanced electrical/electronic equipment and systems, intended for use on both naval and commercial platforms.

Additionally, GRSE signed a pact with Kerala State Electronics Development Corporation Limited to establish a collaborative working arrangement for the development of core futuristic technologies in various fields, aimed at achieving self-reliance in certain areas of underwater surveillance.