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Garden Reach Shipbuilders & Engineers Ltd. Q4 & FY20 Results Ended 31st March, 2020

Kolkata, 6thJune 2020:Garden Reach Shipbuilders & Engineers Limited (GRSE), one of the leading warship builders in the country have announced its Financial Results for theQ4 & FY20 ended on March 31st, 2020.

FY20: Revenue up by 3.38%, PAT up by 50.63%
    FY20 Financial Performance Highlights
  • Revenue from Operations stood atRs. 1433.30Cr as compared Rs.1386.42 Cr, an increase of3.38 % over Previous Year
  • EBITDA stood at Rs. 255.30Cr as compared to Rs.211.16Cr, 20.90%, improvement over Previous Year
  • EBITDA (Margin) is 15.39% in current twelve months against13.56% in the corresponding twelve months. Thus, registering an increaseof 1.83%
  • PBT stood at Rs. 223.87Cr as compared to Rs.178.96Cr, up by 25.10%, in comparison to twelve months of Previous Year
  • PAT stood at Rs.163.48 Cr, as compared to Rs.109.94Cr, up by 48.70%, in comparison to same period of Previous Year
  • Profit After Tax (Margin) is 9.86% in current twelve months against 7.06% in the corresponding twelve months Thus, registered increase of 2.80%
  • EPS stood at Rs.14.27 as compared to compared to Rs. 9.60 up by Rs.4.67 per share, in comparison to same period of Previous Year

Q4 FY20: Revenue down by 5.51%, PAT increase by 47.80% against same period of Previous Year

Q4 FY20 Vis-à-vis Q4 FY19:

  • Revenue from Operations for the quarter ended March 31, 2020 stood at Rs 456.69 Cr., as compared to Rs.489.21 Cr. in the same period of Previous Year
  • EBITDA (Margin) is 15.05% in current quarter against 15.03% in the corresponding quarter of last year. Thus, registering a increase of 0.02%
  • Profit Before Tax stood at Rs. 69.15 Cr. in current quarter against Rs.73.01 the corresponding quarter of last year. Decrease is 5.29%
  • Profit After Tax stood at Rs.49.69 Cr. in current quarter against Rs.33.62 Cr. in the corresponding quarter of last year increase is47.80%
  • Profit After Tax (Margin) is9.75% in current quarter against 6.24% in the corresponding quarter of last year. Thus, registeredincrease of 3.51%
  • Earnings Per Share for Q4 FY20 stood at Rs.4.34, as compared to Rs. 2.94 for Q4FY19 up by Rs.1.40 per share.
Operational Highlights of Reported Period

Consistent improvements in FY 19-20 over last 4 years, since FY 16-17
  • Operating Revenue increased by 54% to Rs 1433.30crore from Rs. 929.32 crore
  • Profit Before Tax increased to Rs. 223.87 crore from Rs. 20.12 crore
  • Profit After Tax increased to Rs.163.48 crore from Rs. 11.47 crore
  • EPS is Rs.14.27 as compared to Rs 0.94
  • Dividend per share Rs 7.14 against Rs 4.37
  • The Company has reported consistent improvement since last 4 years , FY 16-17 due to commencement of Advanced project of P-17 A with higher improved operating efficiency.
The company is currently executing 05 Projects with construction of 18 Ships. Of these Projects, 04 Projects are for Indian Navy and 01 Project is for Indian Coast Guard.

As on 31 March 20, the company Order Book position stands at Rs.26,544 Crores with shipbuilding projects related Order Book Value of Rs. 26,281 Crores. During the Reported Period the company delivered 04 Ships, 02 for Indian Navy and 02 for Indian Coast Guard. With these deliveries the company delivered 04Ships in total during the 12 months period from April 2019 till Mar2020.This makes total warship delivered numbers as104 till end of 31st March 2020.

Under Indian Navy Contract for construction of 03 Advanced Stealth Frigates with total Contract Value of Rs. 19,293 Crores, the company recently did the Keel Laying for 2nd Ship which is ahead of the contractual timelines. The construction of the 1st Ship of this contract is progressing satisfactorily and company has plans to have the start production for the 3rd Ship shortly.

In respect of Survey Vessel (Large) Project of Indian Navy for 04 Ships, the company has done with the Keel Laying for the 1st Ship and start production for the 2nd Ship during the reported period.

Company operations were impacted during lockdown period imposed in view of the Covid-19 Pandemic. However partial operations have resumed and company has made a catch-up plan to make up the production losses suffered due to lockdown.

There has been some impact on the Company's Assets / properties due to the Cyclone Amphan which hit some parts of the State of West Bengal including Kolkata.Though there has been no major loss to the Shipyard assets ,suitable steps have been taken towards lodging the Insurance claims with the underwriter as all assets are fully covered under the insurance policies.

About Garden Reach Shipbuilders & Engineers Ltd. 

Garden Reach Shipbuilders & Engineers Ltd, under the administrative control of the MoD, GoI, primarily catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. GRSE derives a significant majority of its revenue from its shipbuilding division, In addition to their warship building capabilities the company is also engaged in engineering and engine production activities. The engineering division manufactures deck machinery items, pre-fabricated portable steel bridges and marine pumps.

The Company has established capabilities for in-house design and shipbuilding and has made considerable contributions to the indigenous warship construction program of India. Over the years, Company has responded to the varied shipbuilding requirements of the Indian Defence Services and have evolved from building simpler vessels to building bigger and technically advanced warships.

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