Rs 25,231.29 Crore Order Book: Warship Building Company Works Towards a Greener Future; Signs Contract Worth Rs 226.218 Crore with Government of West Bengal
The stock has delivered multibagger returns of 116 per cent from its 52-week low and a whopping 450 per cent in 3 years.
In a display of its capability to build new-age vessels and contribute towards a greener future, Garden Reach Shipbuilders & Engineers (GRSE) Ltd signed a contract with the Transport Department, Government of West Bengal, for the delivery of 13 hybrid ferries. The ferries will be operated on the River Hooghly by the West Bengal Transport Infrastructure Development Corporation Ltd (WBTIDCL).
The contract was signed by Shri Tapas Biswas, Joint Project Director, WBIWTLSDP and Cdr Shantanu Bose, IN (Retd.), Director (Shipbuilding), GRSE, in the august presence of Shri Snehasis Chakraborty, Hon’ble Minister-in-Charge, Transport Department, Government of West Bengal, Dr Saumitra Mohan, IAS, Special Secretary, Transport Department & Project Director, WBIWTLSDP, Mr. Shiraz Daneshyar, IAS, Special Secretary Transport Department & Project Director WBIWTLSDP, Shri Venkatesh Murthy, CGM(CSB), GRSE and senior officials from WBTIDCL & GRSE.
These vessels will have catamaran hull design and be built with aluminium and Fiber Reinforced Polymer or FRP. The hybrid electric propulsion systems will be powered by batteries as well as diesel generators. The hybrid system will offer greater flexibility to the operator to switch from one mode to the other as per requirement, allowing for greater safety. The use of batteries will reduce pollution substantially.
GRSE had earlier been assigned by the Government of West Bengal to design a prototype for a next generation zero-emission ferry. This ferry, named ‘Dheu’ was launched by GRSE on January 11, 2024 and technically accepted on March 22, 2024.
Of the 13 ferries for which the contract was signed, six will have twin decks with a capacity of 200 passengers each. The main deck will be air-conditioned. These vessels will be about 30 meters long and 8-10 meters wide. Their maximum speed will be 12 knots and each will require a crew of five. The estimated cost of these six vessels is Rs 126.41 crore (excl. GST).
The remaining seven vessels will have only a single deck with a passenger capacity of 100. These ferries will be nearly 25 meters long and 8 meters wide with a top speed of 9 knots. There is provision for five crew members on board. These seven vessels are expected to cost nearly Rs 99.77 crore (excl. GST).
As per the contract, the hybrid ferries will carry passengers in all-weather conditions on River Hooghly (part of National Waterway – 1, the Ganga-Bhagirathi-Hooghly River System) in the Kolkata Metropolitan Area (KMA), stretching from Triveni in the north to Diamond Harbour in the south.
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Garden Reach Shipbuilders & Engineers Ltd. (GRSE), a Schedule ‘A’ Mini Ratna Category I Company, is a premier Indian warship builder with a rich history dating back to 1884. This Ministry of Defence undertaking has built over 790 platforms, including 110 warships for the Indian Navy, Coast Guard, and foreign navies. From India's first warship, the SDB INS Ajay, to its first export warship, the CGS Barracuda, GRSE's capabilities span a wide range of vessels, including frigates, corvettes, survey vessels, and fast attack craft. The shipyard's commitment to excellence and quality is reflected in its numerous accolades and ongoing infrastructure modernization.
The company announced positive Quarterly Results (Q2FY25) and half-yearly results (H1FY24) for the financial year 2024. According to quarterly results, revenue increased by 28.4 per cent to Rs 1,152.92 crore, EBITDA increased by 19.4 per cent to Rs 143.65 crore and PAT increased by 21.1 per cent to Rs 97.77 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, revenue increased by 30.8 per cent to Rs 2,162.64 crore, EBITDA increased by 15.5 per cent to Rs 273.78 crore and PAT increased by 17.5 per cent to Rs 184.97 crore in H1FY25 compared to H1FY24.
The order book as of June 30, 2024, stands at Rs 25,231.29 crore. The stock has delivered multibagger returns of 116 per cent from its 52-week low and a whopping 450 per cent in 3 years. Investors should keep a close watch on this small-cap shipbuilding stock.
Disclaimer: The article is for informational purposes only and not investment advice.