Q2 2025 Garden Reach Shipbuilders & Engineers Ltd Earnings Call Transcript
Key Points
- Garden Reach Shipbuilders & Engineers Ltd (BOM:542011) reported a significant increase in revenue from operations, growing by 28% year-on-year from INR898 crores to INR1,153 crores.
- The company's order book is robust, standing at INR24,221.37 crores, comprising 12 projects with 43 platforms, including four export projects.
- The company has successfully delivered two ships under the Survey Vessel (Large) project and is on track to deliver the remaining ships by mid-next year.
- Garden Reach Shipbuilders & Engineers Ltd (BOM:542011) is actively pursuing green energy initiatives, having developed a fully electric ferry for the government of West Bengal.
- The company has expanded its shipbuilding capacity from 20 to 24 concurrent platforms, preparing for future demand and orders.
- The cost of materials has increased significantly, impacting gross margins due to the maturity stage of ongoing projects.
- The company's trade receivable turnover ratio has decreased from 39.48 to 19.64, indicating potential delays in receivables.
- There are concerns about execution challenges due to social unrest in Bangladesh, where the company is working on several projects.
- The gross margin has declined to below 30%, a level not seen in many quarters, raising concerns about profitability.
- The company faces potential budget constraints from the Indian Navy due to other large defense procurements like drones and Rafale jets.
Good afternoon, ladies and gentlemen. I'm Yashashri, the moderator for this conference. Welcome to the conference call of Garden Reach Shipbuilders & Engineers Limited arranged by Concept Investor Relations, to discuss its Q2 and H1 FY25.
We have with us today Commodore P. R. Hari, Indian Navy Retired, Chairman and Managing Director; and Shri R.K. Dash, Director, Finance and CFO. (Operator Instructions) Please note that this conference is being recorded.
I would now like to hand over the floor to Commodore P. R. Hari, Chairman and Managing Director. Thank you, and over to you, sir.
Thank you, Yashashri. Ladies and gentlemen, a very good afternoon to each one of you. I'm P. R. Hari, Chairman and Managing Director of the company; and with me here are Shri Ramesh Kumar Dash, Director Finance and CFO; Mrs. Aparajita Ghosh, General Manager of Finance; and Shri Sandeep Mahapatra, the Company Secretary.
I extend my warm welcome to each one
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