GRSE shares surge over 6% after net profit soars 21% YoY in Q2 show

Shares of Garden Reach Shipbuilders & Engineers (GRSE) jumped up to 6.2 per cent to hit an intraday high of Rs 1,470.80 per share on the BSE after the company reported an increase in net profits in its second quarter of financial year 2024-25 (Q2FY25).

 

The company on Wednesday reported a net profit of Rs 97.8 crore in Q2FY25, marking an increase of 21.1 per cent versus a net profit of Rs 80.7 crore in the year ago period. 

 

The company’s revenue from operations for the quarter stood at Rs 1,152.9 crore in the September quarter of FY25, reflecting an 28.4 per cent increase from Rs 897.9 crore in the previous year.  

 

GRSE’s earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at Rs 144 crore, soaring 20 per cent versus Rs 120 crore in the same quarter last year. Ebitda margin improved to 6 per cent versus 5.4 per cent in Q2FY24.

 

For the six months ending September 30, 2024 (H1FY24), GRSE reported a revenue from operations of Rs 2,163 crore, up from Rs 1,654 crore in H1FY24. Ebitda for H1FY25 reached Rs 274 crore, an increase from Rs 237 crore in the previous year, with an Ebitda margin of 16 per cent. The company’s profit after tax (PAT) rose to Rs 185 crore in H1FY25, compared to Rs 157 crore in H1FY24, resulting in a PAT margin of 18 per cent.

 

GRSE is primarily in the business of ship building requirements of the Indian Navy and the Indian Coast Guard. In addition to the shipbuilding GRSE also builds and supplies various boats pontoons barge sailing dinghy fishing trawler fire float tug dredger passenger ferry motor cutter deck whaler and launch.

GRSE share price history

The company’s stock has outperformed the market year to date as it has risen 60 per cent, while gaining 82 per cent in the last one year. In comparison BSE Sensex has risen 7.2 per cent year to date and 19.3 per cent in a year. 

 

The company has a total market capitalisation of Rs 16,059.62 crore. GRSE shares are trading at a price to earnings multiple of 41.42 times and at an earning per share of Rs 33.59. 

 

At 11:41 AM; the shares of the company pared most of their gains and were trading 1.10 per cent higher at Rs 1400.10 a piece. By comparison, the BSE Sensex was down 0.25 per cent at 77,494.02 level.