COVID shows impact in GRSE Q2FY21 results, performance improves QoQ though

Defence PSU GRSE's PAT in the Q2FY21 registers huge drop to Rs 38 crore YoY, however EBITDA of Q2 has been increased 6 times over that of Q1 of FY 20-21
COVID shows impact in GRSE Q2FY21 results, performance improves QoQ though

Kolkata: (Defence Manufacturing News) Defence PSU Garden Reach Shipbuilders & Engineers Limited (GRSE), one of the leading warship builders in the country have announced its financial results for the second quarter ended Sept 30, 2020, on Thursday. Second-quarter results of the company clearly show the impact of the pandemic. In the Q2FY21 GRSE has registered a huge drop to Rs 38 crore which was Rs 84 crore in the same period the previous year. Naturally, because of the pandemic, the Defence PSU's revenue from operations has also been almost halved from Rs 607 crore to Rs 382 crore in the quarter under the lens.

However, the shipbuilder has made quite a progress Quarter on Quarter. Revenue from Operation has been increased in Q2 by 147 % in comparison to Q1 of FY20-21. In the first quarter, it was Rs 110 crore which has risen to Rs 272 crore in the quarter ended on September 30. Total Income has been increased in Q2 by 100% in comparison to Q1. Operating Loss has been reduced from Rs. 45 Crs. to Operating Profit of Rs. 27 Crs. i.e improvement by 156% in Q2 over Q1 of FY'21.

In a press release issued on Thursday evening GRSE said that on account of the spread of COVID-19, the Government of India had imposed a complete nationwide lockdown on March 24, 2020, which led to shutting down of the Company's manufacturing facilities and logistics operations. In the current quarter, GRSE has resumed operations to near normalcy. "The management is continuously and closely monitoring the developments and possible effects that may result from the current pandemic on its financial condition, liquidity and operations and is actively working to minimize the impact of this unprecedented situation," the company said.

"Management has an estimated value of loss of production hours and quantum of non-usage of Plant & Machinery of production shops during this half-year period as Rs. 1920.22 Lakhs and Rs. 154.72 Lakhs respectively which has been stated as Exceptional items in Financial Statement" it further added. 

The order book position of the shipbuilder as on Oct 1, 2020, stood at Rs 26,189 crore.

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