Saturday, June 25, 2022

103rd GRSE AGM, first one after the successful IPO

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Kolkata: The 103rd AGM Annual General Meeting (AGM) of Garden Reach Shipbuilders & Engineers Limited (GRSE) held on Friday at Bhasha Bhawan of National Library, Kolkata. It was the first GRSE AGM after the successful IPO of the Company. Commenting on the outcome of the Annual General Meeting, Rear Admiral V K Saxena, IN(Retd.), Chairman and Managing Director, Garden Reach Shipbuilders and Engineers Ltd., stated that this AGM had a very special significance as it was GRSE’s first AGM after the successful IPO of the Company, wherein the Government of India disinvested 25.50% of its shareholding in the Company. The Public Issue was well received and the shares of the Company are now listed at NSE and BSE.

The CMD took the opportunity to extend his gratitude to all the investors for the confidence they reposed in the Company, which was further reflected by the increased market capitalization post listing of its shares. The core objective of GRSE has been the strengthening of India’s defence preparedness. GRSE is the only shipyard in the country to have delivered 100 warships since its inception as a Defence Public Sector Undertaking (DPSU) in 1960. It further boasts of a dedicated engineering division engaged in the manufacture of bailey bridges, apart from a variety of deck machinery equipment which goes primarily onboard ships.

The Company also has a separate Diesel Engine Plant at Ranchi, for assembly, testing and overhaul of diesel engines. All these contribute to reinforcing GRSE’s reputation as a major force behind making India self-reliant in warship building and engineering production. As India’s shipbuilding industry further matures, it also spells enormous potential to forge strategic partnerships with friendly foreign countries.

This will eventually make India a preferred hub for defence shipbuilding exports and repairs. GRSE is well-positioned to take advantage of these emerging opportunities within India as well as abroad. Talking about GRSE's performance in 2018-19, the DPSU registered a gross Revenue registered a growth of 1.88% from Rs.1,528.89 crore in 2017-18 to Rs. 1,557.66 crore in 2018-19. While the value of Production increased from Rs.1,345.52 crore in 2017-18 to Rs.1,378.77 crore in 2018-19, a boost of 2.47%. GRSE's Profit Before Tax (PBT) increased from Rs.127.74 crore in 2017-18 to Rs.178.96 crore in 2018-19, a hike of 40.09%. Remarkably, the value Addition per Employee increased from Rs.18.94 lakh in 2017-18 to Rs. 21.05 lakh. The book Value per Share increased from Rs. 89.18 in 2017-18 to Rs. 90.64, and the net worth increased from Rs.1,021.53 crore in 2017-18 to Rs.1038.30 crore in 2018-19, an increase of 1.64%.

The Board of Directors of the Company have recommended a final dividend of Rs. 5.10/- per equity share of face value of Rs. 10/- each for the financial year 2018-19. This is in addition to the interim dividend of Rs. 1.85/- per equity share of the face value of Rs. 10/- each which was paid on 28  Mar 19. This marks an increase in dividend per share from Rs. 4.43 in 2017-18 to Rs. 6.95 in 2018-19. The order book position of the Company as on 01 Jul 19 stood at Rs. 27,804 Cr. GRSE signed a contract worth Rs. 6311 Cr for eight nos. Anti-Submarine Warfare Shallow Water Craft (ASWSWC) with the Indian Navy on 29 Apr 19.

The CMD said in conclusion that he would like to thank the Ministry of Defence, Central and State Government Authorities and Indian Navy & Indian Coast Guard Authorities for their unstinted support and valuable guidance extended to GRSE. He also expressed the wish to take the opportunity to convey his gratitude to all the esteemed shareholders of GRSE for the continued trust and confidence they have reposed in the Company.

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