Garden Reach Shipbuilders & Engineers (GRSE) Q4 23/24 earnings summary

Executive summary

• FY24 revenue from operations reached INR 3,59,264.23 lakh and PAT was INR 35,726.77 lakh, compared with INR 2,56,114.51 lakh and INR 22,812.40 lakh in FY23.

• Order book stood at INR 52,652.63 crore at March 31, 2024, led by shipbuilding orders of INR 26,593 crore.

• Expansion priorities include exports, commercial shipbuilding, green-energy vessels, autonomous platforms and ship repairs.

Financial highlights

• FY24 total income was INR 3,89,226.42 lakh; total expenses were INR 3,41,134.33 lakh and PBT was INR 48,092.09 lakh.

• FY24 EBITDA rose 41% to INR 556 crore; revenue from operations increased 40% to INR 3,593 crore.

• Q4 FY24 revenue from operations was INR 1,01,572.70 lakh and PAT INR 11,159.57 lakh, versus INR 60,116.62 lakh and INR 5,529.74 lakh in Q4 FY23.

• Q4 EBITDA rose 84% and EPS increased 102% to INR 9.74 from INR 4.80; an analyst cited an 8.9% EBITDA margin excluding other income.

• Management attributed quarterly margin strength to lower subcontracting costs, reduced revenue expenditure and efficiency gains.

Outlook and guidance

• Management targets revenue growth above 20%–25% YoY over the next two years, with FY25 and FY26 expected to be peak revenue years.

• FY24–FY26 growth is expected to be driven mainly by P17A and NGOPV projects; NGOPV revenue is expected to begin in FY27–FY28.

• INR 27,000–28,000 crore of new orders are needed to sustain revenue beyond 2027; smaller awards could offset a shortfall in a large project.

• Next-generation corvette RFP was expected in June, with contract signing anticipated by July–August 2025, subject to the tender process.

• Management expects margins to remain at current levels and cited 7.5% net-adds margin as the shipbuilding benchmark.