Garden Reach Shipbuilders (GRSE) Stock Surges 18% to Record High on Doubling Q4 Profits

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    <li>Shares of Garden Reach Shipbuilders & Engineers skyrocketed over 18 percent in morning deals on Thursday to hit its new high of ₹1,410.15 after the company posted exceptional results for the quarter ended March 2024 (Q4FY24).</li>
    <li>The company's net profit in Q4FY24 more than doubled, up 101.81 percent year-on-year (YoY) to ₹111.60 crore, its highest ever, as against ₹55.30 crore in the same quarter last year.</li>
    <li>“Happy to report a strong set of numbers, with both our Revenue from Operations and Profit after Tax reaching new heights. Backed by a strong order book and with our ongoing projects at a maximum revenue recognition phase, and also with more orders on the anvil, we are confident of sustained growth in the coming years too," said Cmde Hari PR, IN (Retd) Chairman and Managing Director, Garden Reach Shipbuilders & Engineers Limited.</li>
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<p><strong>Garden Reach Shipbuilders & Engineers Limited posts record profits in Q4FY24, driving stock to new heights.</strong></p>
<h2><strong>Exceptional Q4FY24 Performance</strong></h2>
<p>Garden Reach Shipbuilders & Engineers Limited reported a remarkable increase in net profit for Q4FY24, doubling its earnings year-on-year to ₹111.60 crore. This surge in profitability is attributed to a significant rise in sales, which jumped 68.96 percent YoY to ₹1015.73 crore in the quarter under review.</p>
<h3><strong>EBITDA and Operational Efficiency</strong></h3>
<p>On the operational front, the company's Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) more than tripled during the quarter to ₹90.5 crore, compared to just over ₹20 crore in the same period last year. This substantial growth in EBITDA underscores the company's improved operational efficiency and cost management strategies.</p>
<h2><strong>Industry-Wide Rally</strong></h2>
<p>Other shipbuilders also joined in the rally. Mazagon Dock Shipbuilders advanced 8 percent to its new high of ₹3,110, while Cochin Shipyard rallied 9.4 percent to its record high of ₹1,787. These gains reflect a broader positive sentiment in the shipbuilding sector.</p>
<h3><strong>Annual Performance and Future Outlook</strong></h3>
<p>For the full financial year 2023-24 (FY24), Garden Reach Shipbuilders & Engineers Limited's net profit surged 56.61 percent YoY to ₹357.27 crore, while sales rose 40.27 percent YoY to ₹3592.64 crore. The company remains optimistic about sustained growth, backed by a strong order book and ongoing projects at maximum revenue recognition phases.</p>
<h3><strong>Conclusion</strong></h3>
<p>Garden Reach Shipbuilders & Engineers Limited has demonstrated exceptional financial performance in Q4FY24, driving its stock to new heights. With a robust order book and strategic focus on operational efficiency, the company is well-positioned for continued growth in the coming years. Investors and stakeholders can look forward to sustained profitability and value creation.</p>