- 14 Nov 2024
- ICICI Securities
GARDEN REACH SHIPBUILDERS Q2FY25 - EXECUTION REMAINS HEALTHY
News: Revenue increased by 28.4% YoY (+14.2% QoQ) at Rs 1152.9 crore, led by strong execution of order backlog. EBITDA margin stood at 6% (+53 bps YoY, +39 bps QoQ). Subsequently, EBITDA increased by 40.9% YoY (+22% QoQ) to Rs 68.7 crore. PAT stood at Rs. 97.8 crore an increase of 21.1% YoY (+12.1% QoQ). The H1FY25 revenue increased by 30.8% YoY to Rs. 2162.6 crore with EBITDA margin at 5.8% (vs 5.7% in H1FY24)
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 24500 crore (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