- 09 Aug 2024
- ICICI Securities
GARDEN REACH SHIPBUILDERS & ENGINEERS - EXECUTION REMAINS STRONG
GRSE - 1705 Change: -13.50 (-0.79 %)News: Revenue increased by 33.6% YoY (flattish QoQ) to Rs 1009.7 crore in Q1FY25, led by strong execution of the order backlog. EBIDTA margin stood at 5.6% (-52 bps YoY, -334 bps QoQ). Subsequently, EBITDA increased by 22.1% YoY (-37.9% QoQ) to Rs 56.3 crore. PAT was up 13.7% YoY (-21.9% QoQ) to Rs 87.2 crore.
Views: Revenue growth remains strong during the quarter as FY25E-26E would be the maximum revenue recognition phase for the company. Order backlog is estimated to be at ~Rs 21600 crore (5.6x TTM revenue) which includes key contracts like P-17A frigates, anti-submarine warfare corvettes and survey vessels. Timely placement of other large projects in pipeline (like next generation corvettes, survey vessels, patrol vessels etc) would be the key driver for sustainable strong growth in the longer term.
Impact: Positive