GRSE Q3 results: Profit misses estimates, revenue up 38%

KOLKATA : Garden Reach Shipbuilders & Engineers Ltd. reported an 11% year-on-year rise in net profit in the third quarter of this financial year, missing analysts’ estimates.

The shipbuilding company posted a profit of Rs 98.2 crore for the quarter ended December, compared to Rs 88.3 crore in the same quarter of the previous fiscal year, according to an exchange notification on Monday. This was below the Rs 115-crore consensus estimate by analysts tracked by Bloomberg.

Revenue increased 38% in the three months ended December, reaching Rs 1,271 crore. Analysts had projected revenue of Rs 1,324 crore.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 55% year-on-year to Rs 75.3 crore. The Ebitda margin expanded to 5.9% from 5.3% in the same period the previous year. Analyst estimates for the Ebitda and Ebitda margin tracked by Bloomberg were Rs 82 crore and 6% respectively.

Dividend

Along with its quarterly earnings, GRSE declared an interim dividend of Rs 8.95 per equity share for financial year 2024–25.

The total payout amounts to Rs 102.5 crore, drawn from the company’s profit for the nine months ended Dec. 31, 2024, according to its exchange filing. The board of directors have set Feb. 7 as the record date to determine shareholders eligible for the dividend.

Earlier in this fiscal, the board had also declared a final dividend of Rs 1.44 per share, with the ex-date set as Sept. 13, 2024.

Shares of the company closed 5.56% lower at Rs 1,507.95 per share, compared to a 0.52% decline in the benchmark Nifty 50. The share price has risen 71.74% in the last 12 months. 

Three out of the four analysts tracking the company have a ‘buy’ rating on the stock and one suggests a ‘sell’, according to Bloomberg data. The average of 12-month analysts’ price targets implies a potential upside of 1%.