Shipbuilder GRSE shows colors of revival in Q3FY21 results

Kolkata: COVID-19 has mostly affected industries that are highly labour intensive and shipbuilding is not an exception. Coming out of all the difficulties faced in the past 9 months, Garden Reach Shipbuilders & Engineers (GRSE) has started showing colours of revival in Q3FY21 results announced on Tuesday. The shipbuilder has posted a total income of Rs. 399 crore in Q3FY21 as against Rs 320 crore in Q2FY21, which shows an increase of 25 percent. Revenues from operations for the quarter ended December 31, 2020, stood at Rs 360 crore as compared to Rs 272 crore in the previous quarter in the same financial year registering 32 percent increase. However, the revenues from operations for Q3FY20 stood marginally up at Rs 370 crore.

Defence PSU's earnings before Interest, Tax, Depreciation and Amortization (EBITDA) stands Rs 81 crore in Q3FY21, as against Rs 60 crore in Q2FY21, showing an increase of little under 20 percent. If we compare this figure with the same quarter in the previous financial year that is Q3FY20 then the shipbuilder has registered a growth of 62% over the EBITDA of Rs 50 crore in Q3FY20. 

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Talking about Profit Before Tax (PBT) GRSE has posted Rs 73 crore PBT for Q3 FY21 as compared to Rs  54 crore in Q2 FY21. The Company's PBT margin stood at 18 percent. GRSE's EBITDA stands Rs. 81 crore in Q3 FY21, as against Rs 50 crore in Q3 FY20 registering a growth of 62% over Q3FY20. GRSE's PAT Rs 58 crore for Q3FY21 is 95 percent higher than Rs 38 crore for Q3FY21.

About GRSE

Garden Reach Shipbuilders & Engineers Ltd, under the administrative control of the MoD, GoI, primarily catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard.  GRSE derives a significant majority of its revenue from its shipbuilding division, In addition to their warship building capabilities the company is also engaged in engineering and engine production activities. The engineering division manufactures deck machinery items, pre-fabricated portable steel bridges and marine pumps.

The Company has established capabilities for in-house design and shipbuilding and has made considerable contributions to the indigenous warship construction program of India. Over the years, Company has responded to the varied shipbuilding requirements of the Indian Defence Services and have evolved from building simpler vessels to building bigger and technically advanced warships.

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