Garden Reach Shipbuilders shares rise 2% after strong Q3 performance

Shares of Garden Reach Shipbuilders and Engineers saw a 2% increase at the opening on February 14, following the company’s robust third-quarter results. The shipbuilding and repairing firm reported a significant 38% year-on-year increase in net profit, reaching Rs 88.3 crore.

According to a regulatory filing on February 13, Garden Reach Shipbuilding and Engineering posted a net profit of Rs 88.3 crore for Q3FY24, driven by a 32.1% growth in revenue, which amounted to Rs 923.1 crore. Despite a slight decline in operating margin, the company’s net profit surged, aided by strong topline and other income. EBITDA also saw a positive growth of 3.8%, reaching Rs 48.7 crore from the previous fiscal year. However, the margin for the same period dipped to 5.3% compared to 6.7% in the year-ago period.

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Over the past year, Garden Reach Shipbuilders’ stock has soared by over 88% and has multiplied over eight times in the last five years. The state-owned company is engaged in shipbuilding, engine overhaul, assembly & testing, and other engineering activities.

As of 12:29 pm, Garden Reach Shipbuilders’ shares were trading 1.65% higher at ₹810.80, reflecting positive investor sentiment towards the company’s strong performance.