Wednesday, 5 February 2020

Performance Review of Quarter Ended and Nine Months Ended 31st December, 2019

Garden Reach Shipbuilders & Engineers Ltd.
(A GOVT OF INDIA UNDERTAKING, MINISTRY OF DEFENCE)
Registered Office: 43/46, Garden Reach Road, Kolkata – 700 024.
CIN: L35111WB1934GOI007891

Performance Review

Results of Quarter Ended and Nine Months Ended 31st December, 2019

Garden Reach Shipbuilders & Engineers Limited (GRSE), one of the leading warship builders in the country have announced its Financial Results for the  3rd Quarter three and Nine months ended December 31, 2019.


9M FY20:  Revenue up by 9%, PAT up by 49%

Highlights for 9M FY20 vis-à-vis 9M FY 19 

§ Total Income up by 13% to Rs.1149.32 crore
§ Operating Revenue up by 9% to Rs. 976.61 crore
§ Profit Before Tax up by 46% to Rs. 154.72 crore
§ Profit After Tax up  by 49 % to Rs. 113.80 crore
§ EPS at Rs. 9.93 as compared to 9M FY19 Rs 6.66, up by 49%

 
 
M FY20 Financial Performance Highlights
·         Revenue from Operations stood at Rs. 976.61 Cr as compared Rs.897.21 Cr, up 9 % for 9M FY19
·         EBITDA stood at Rs. 178.61 Cr as compared to Rs. 130.10 Cr, 37 %, improvement over Nine months of Previous Year.
·         EBITDA (Margin) is 16% in current Nine months against 13% in the corresponding Nine months. Thus, registering an increase of 3%.
·         PBT stood at Rs. 154.72 Cr as compared to Rs. 105.95 Cr, up by 46%, in comparison to Nine months of Previous Year.
·         Profit After Tax (Margin) is 10% in current Nine months against 7% in the corresponding Nine months Thus, registered an increase of 3%.
·         PAT stood at Rs. 113.80 Cr, as compared to Rs. 76.32 Cr, up by 49 %, in comparison to same period of Previous Year.
·         EPS stood at Rs. 9.93 as compared to Rs. 6.66, up 49 %, in comparison to same period of Previous Year.

Q3 FY20: Revenue down by 24%, PAT down by 38% against same period of Previous Year


Highlights for Q3 FY20 vis–a-vis Q3 FY19 

§ Total Income decreased by 21% to Rs. 420.87 crore
§ Operating Revenue down by 24% to Rs. 369.63 crore
§ Profit Before Tax down by 42% to Rs. 41.46 crore
§ Profit After Tax down by 38 % to Rs. 29.50 crore
§ EPS at Rs. 2.57 as compared to Rs 4.13 last year, down by 38%
 












Q3 FY20 Vis-à-vis Q3 FY19:

·         Revenue from Operations for the quarter ended December 31, 2019 stood at Rs.369.63 Cr., as compared to Rs. 488.59 Cr. in the same period of Previous Year.
·         EBITDA (Margin) is 12 % in current quarter against 15% in the corresponding quarter of last year. Thus, registering a decrease of 3 %.
·         Profit Before Tax stood at Rs. 41.46 Cr. in current quarter against Rs.71.25 Cr. in the corresponding quarter of last year. Decrease is 42%.
·         Profit After Tax (Margin) is 7% in current quarter against 9% in the corresponding quarter of last year. Thus, registered a decrease of 2%.
·         Profit After Tax stood at Rs. 29.50 Cr. in current quarter against Rs.47.34 Cr. in the corresponding quarter of last year. Decrease is 38%.
·         Earnings Per Share for Q3 FY20 stood at Rs. 2.57, as compared to Rs. 4.13 for Q3 FY19

Operational Highlights of Reported Period


The company is currently executing 06 Projects with construction of 19 Ships.  Of these Projects, 05 Projects are for Indian Navy and 01 Project is for Indian Coast Guard.

As on 31 Dec 2019, the company Order Book position stands at Rs. 27,047 Crores with shipbuilding projects related Order Book Value of Rs. 26,732 Crores.  During the Reported Period the company delivered 03 Ships, 01 for Indian Navy and 02 for Indian Coast Guard.  With these deliveries the company delivered 05 Ships in total during the 10 months period from Mar 2019 till Dec 2019.

Under Indian Navy Contract for construction of 03 Advanced Stealth Frigates with total Contract Value of Rs. 19,295 Crores, the company recently did the Keel Laying for 2nd Ship which is ahead of the contractual timelines.  The construction of the 1st Ship of this contract is progressing satisfactorily and company has plans to have the start production for the 3rd Ship shortly.

In respect of Survey Vessel (Large) Project of Indian Navy for 04 Ships, the company has done with the Keel Laying for the 1st Ship and start production for the 2nd Ship during the reported period.

Management Comments


The shipbuilding process is highly complex process & construction activities involve long gestation period.  In this process, the shipyard plays the role of integrator while Vendors / Suppliers / OEMs work with the shipyard closely for continuing with the construction activities.

With this nature of business of warship construction, year-on-year performance is considered relevant than the quarter-on-quarter performance.

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