- 19 Sep 2024
- ICICI Securities
GRSE BAGS ~RS 450 CRORE EXPORT CONTRACT
News: Garden Reach Shipbuilders & Engineers (GRSE) has signed a $ 54 million (~Rs 450 crore) contract with M/s Carsten Rehder Schiffsmakler and Reederei GmbH & Co., KG Germany, for Construction and delivery of 4 Multi-Purpose Vessels of 7500 DWT. The order will be executed in 33 months. GRSE had received an order of 4 such vessels in June 2022 also.
Views: With the contract of 4 vessels, company's order backlog is estimated to be at ~Rs 24700 crore (6.4x TTM revenue), giving strong growth visibility. FY25E-26E would be the maximum revenue recognition phase for the company as the execution of existing contracts (like P-17A frigates, anti-submarine warfare corvettes and survey vessels) would pick-up significantly. 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