- 24 Jun 2024
- ICICI Securities
GRSE BAGS EXPORT ORDER FOR COMMERCIAL VESSELS
GRSE - 1715 Change: -6.90 (-0.40 %)News: Garden Reach Shipbuilders & Engineers (GRSE) has signed an agreement with “Carsten Rehder Schiffsmakler” and “Reederei GmbH & Co. KG Germany” for the construction and delivery of four multi-purpose vessels of 7,500 DWT each, with an option of building another four ships in near future. The contract size is $ 54 million (~Rs 450 crore). With a length of 120 metres and width of 17 metres, the vessels can carry 7,500 metric tonnes of cargo.
Views: Exports has been a key focus area for the company as it has been aggressively pursuing commercial shipbuilding contracts for exports and focusing on European and IOR regions. Company’s order backlog remains strong at ~Rs 22500 crore (6.3x FY24 revenue) which includes key contracts like P-17A frigates, anti-submarine warfare corvettes and survey vessels. Company’s revenue growth for FY25E & FY26E is expected to remain strong (FY24 revenue growth stood at ~40% YoY) as the existing key contracts would be going through maximum revenue recognition phase. Timely placement of other large projects in pipeline (like next generation corvettes, patrol vessels etc) would be the key for sustainable strong growth in the longer term.
Impact: Positive