Garden Reach Shipbuilders & Engineers (GRSE) Q1 24/25 earnings summary

Executive summary

• Order book stood at INR 25,231.29 crore, predominantly shipbuilding; 18 warships were under construction for the Indian Navy, alongside civilian and export projects.

• Q1 FY25 revenue from operations was ₹100,972.05 lakh and profit after tax was ₹8,719.38 lakh, both above Q1 FY24 levels.

• Growth areas include ship repair, green vessels, exports, autonomous platforms and marine-equipment collaborations.

Financial highlights

• Q1 FY25 revenue from operations was ₹100,972.05 lakh versus ₹75,590.32 lakh; total income was ₹108,358.92 lakh versus ₹82,654.10 lakh in Q1 FY24.

• Q1 FY25 profit before tax was ₹11,544.23 lakh versus ₹10,194.17 lakh; profit after tax was ₹8,719.38 lakh versus ₹7,668.07 lakh.

• FY24 revenue from operations was INR 3,592 crore, compared with INR 2,561 crore in FY23 and INR 1,754 crore in FY22.

Outlook and guidance

• Revenue growth guidance is 25%-30% for FY25, with a similar growth tempo expected in FY26; FY26 is expected to be the peak revenue year among FY25-FY27.

• Management expects to maintain a 7.5%-8% PAT margin, with quarter-to-quarter movement depending on project mix.

• FY25-FY27 are expected to be peak execution years for projects underway; recently secured projects are expected to extend execution into FY29.

• Next-generation corvette bids were expected in August 2024; management outlined ~3 months to identify L1 and another 6-9 months to conclude a contract.