Garden Reach Shipbuilders & Engineers (GRSE) declared its fourth quarter earnings on May 24 post market trading hours. The revenues grew 11 percent year-on-year to Rs 601 crore. The earnings before interest, tax, depreciation and amortisation (EBITDA) declined 39 percent to Rs 20 crore versus Rs 33 crore in the corresponding quarter of last year. Hence, the EBITDA margins nearly halved to 3.3 percent versus 6.1 percent in the same quarter of last year. Net profits though stood 17 percent higher at Rs 55 crore versus Rs 47 crore.

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A weak operational performance led to the stock opening 5 percent lower in trade on May 25. With this, the stock is down 11 percent in the past 5 days in total.

The other income is higher at Rs 69 crore in the fourth quarter versus Rs 41 crore year on year. Other project related expenses also rose to Rs 30 crore compared with Rs 6 crore in same quarter of last year. The receivables at year end are at Rs 51 crore versus Rs 151 crore as on 31st March 2022. The cash and bank balance has increased 70 percent year on year to Rs 4,328 crore.

A final dividend of Rs 0.70 per equity share (Face Value of Rs 10 per equity share) for the financial year 2022-23 has been recommended by the Board of Directors. This dividend is in addition to the interim dividend of Rs 5.50 per equity share paid for the financial year.

The warship builder also informed exchanges on May 24 that it entered into a contract with Indian Navy for supply of 10 in number 30 mm Naval Surface Gun (NSG) with Electro Optical Fire Control System (EOFCS) and ammunition at a cost of Rs 249 crore.

The company said “Our financial performance during FY2022‐23 was the best ever in the company’s history". For the financial year 2022-23, revenues grew 46 percent to Rs 2,561 crore. EBITDA is 6 percent higher at Rs 148 crore, but EBITDA margins contracted to 5.8 percent versus 8 percent in same quarter of last year.

GRSE is trading over 5 percent lower on the exchanges at 10:30am on May 25.

First Published:May 25, 2023 10:50 AM IST