GRSE hits record high on inking contract with Govt of Bangladesh

Garden Reach Shipbuilders & Engineers (GRSE) jumped 6.87% to Rs 2,243.80 after the firm signed contract for construction of an advanced ocean-going tug for Government of the People's Republic of Bangladesh.

The order includes design, build and deliver the advanced ocean going tug vessel. The said order received from Directorate General Defence Purchase, Ministry of Defence, Government of the People's Republic of Bangladesh.

The consideration of the order is approximately worth $21 million and it will be completed within 24 months.

The overall length (LOA) of the tug will be nearly 61 metres, and the vessel will be about 15.80 metres wide with a depth nearly 6.80 metres. The tug's draught requirement with a full load will be around 4.80 metres while its bollard pull capacity will be 76 Tons ahead and 50 Tons astern. The ship's maximum speed with a full load will be at least 13 knots.

The tug's primary roles will include towing of ships at sea, both alongside and astern, assist them during berthing and casting off as well as help them in turning through pushing and pulling. The vessel will also have the capability to carry out rescue and salvage operations at sea. Its secondary roles will be to provide firefighting support to ships at sea and limited pollution control measures.

The platform will be extremely robust with a capability to operate even at sea state 5 (wind speeds of 17-21 knots and wave heights of 2-3 metres) with dynamic positioning - 2 system capability. This is an advanced computer-controlled system that allows a ship to maintain its heading and position without the use of mooring lines or anchors.

State-run GRSE is engaged in building warships and other vessels for the Indian Navy and Indian Coast Guard. It has also diversified into engineering business with a product profile of pre-fabricated steel bridges, various deck machinery items and assembly, as well as testing & overhauling of marine diesel engines. As on 31 March 2024, the Government of India holds 74.50% in the company.

The company's net profit doubled to Rs 111.60 crore in Q4 FY24 as compared to Rs 55.30 crore in Q4 FY23. Revenue from operations jumped 68.96% year on year (YoY) to Rs 1,015.73 crore in the quarter ended 31 March 2024.

The scrip hit a life-time high at Rs 2,296.75 in todays intraday session.

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