This fundamentally strong stock plunged over 12 per cent today; heres why!

Q4FY22 recorded a net profit of Rs 47.20 crore in comparison with the net profit of Rs 58.00 crore in the same quarter of the previous year, declining by 18.63 per cent.

The shares of Garden Reach Shipbuilders and Engineers Ltd slumped 12.25 per cent to Rs 266 on NSE as the company announced its Quarterly Results. The company’s net profit for the quarter ended March 31, 2022, declined by 18.63 per cent.  

Considering the financial performance of the company, Garden Reach Shipbuilders and Engineers Ltd recorded net sales and other operating income of Rs 544.61 crore thereby, posting a growth of 36.55 per cent from Rs 398.83 crore registered in Q4FY21. On the contrary, the operating profit was recorded at Rs 73.03 crore in Q4FY22 as compared to an operating profit of Rs 86.57 crore in Q4FY21. Q4FY22 recorded a net profit of Rs 47.20 crore in comparison with the net profit of Rs 58.00 crore in the same quarter of the previous year, declining by 18.63 per cent.       

Considering the yearly performance, the net profit of Garden Reach Shipbuilders and Engineers Ltd surged 23.49 per cent to Rs 189.53 crore as against Rs 153.47 crore during the previous year, ending March 2021. On the other hand, net sales rose by 54.06 per cent to Rs 1,757.51 crore as against Rs 1,140.84 crore during the previous year, ending March 2021.      

Garden Reach Shipbuilders and Engineers Ltd is a premier shipbuilding company in India under the administrative control of the Ministry of Defence, primarily catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. GRSE is a diversified, profit-making and the first shipyard in the country to export warships & deliver 100 warships to the Indian Navy s well as the Indian Coast Guard.   

Investors should keep a close eye on this scrip for the upcoming sessions.