- 14 May 2025
- ICICIdirect Research
GARDEN REACH SHIPBUIDERS REVENUE INCREASED BY 61.7% YOY
GRSE - 3069 Change: -0.70 (-0.02 %)News: Revenue increased by 61.7% YoY (+29.2% QoQ) to Rs 1642 crore in Q4FY25 as the execution remained strong. EBITDA margin improved substantially by 454 bps YoY (+753 bps QoQ) to 13.5%, mainly on account of positive operating leverage. Subsequently, EBITDA increased by 144% YoY (+193.5% QoQ) to Rs 221 crore. PAT was up 118.9% YoY (+148.8% QoQ) at Rs 244.2 crore. For FY25, revenue increased by 41.3% YoY to Rs 5075.7 crore while EBITDA margin stood at 8.3% (vs 6.5% in FY24)
View: Overall operational performance was better than expectations, led by healthy execution with significant margin improvement. Order backlog is estimated to be at ~Rs 24000 crore (4.7x FY25 revenue) which includes key contracts like P-17A frigates, anti-submarine warfare corvettes and survey vessels. 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