In a remarkable display of financial growth, Garden Reach Shipbuilders has seen its share price soar by 18.2%, hitting an intra-day peak of Rs 2,264.90 on the National Stock Exchange. This impressive surge in the defense PSU’s stock is attributed to a significant increase in net profit during the fourth quarter of FY25, which more than doubled to Rs 244 crore, compared to Rs 111.6 crore in the same period last year.
Strong Revenue Growth
The company’s revenue also experienced a substantial boost, climbing 62% year-on-year to reach Rs 1,642 crore for Q4 of the fiscal year 2024-25. This figure stands in stark contrast to the Rs 1,015.7 crore recorded in Q4FY24, showcasing a robust operational performance that has caught the attention of investors.
Impressive EBITDA Increase
Garden Reach’s EBITDA (earnings before interest, tax, depreciation, and amortization) took an impressive leap, soaring 145% year-on-year to Rs 220.95 crore in Q4 FY25, compared to Rs 90.35 crore in the previous fiscal year. Such growth indicates the company’s strong efficiency and management in enhancing profitability.
Dividend Announcement
In a positive move for shareholders, the board of Garden Reach has proposed a final dividend of Rs 4.9 per equity share for the financial year 2024-25. This recommendation is pending approval from the shareholders at the upcoming annual general meeting, potentially rewarding investors for their confidence in the firm.
Q3 Earnings Snapshot
Looking back at its third quarter, Garden Reach reported a net profit growth of 12% year-on-year, totaling Rs 98 crore. Revenue from operations for the same quarter was Rs 1,271 crore, reflecting a 37% year-on-year increase. Additionally, EBITDA surged by 55% to Rs 75.63 crore, with margins improving to 5.95%, up from 5.27% in the previous year.
Stock Performance Highlights
The share price of Garden Reach has been on a remarkable upward trajectory, rising 22.6% over the past five trading sessions. Over the last month, the stock has provided a 31% return and an impressive 57% over the past six months. In fact, over the course of the past year, investors have seen their investments in Garden Reach grow by 125%.
As Garden Reach Shipbuilders continues to demonstrate robust financial performance and strategic growth, its stock remains a compelling prospect for investors looking to tap into the booming defense sector. For more insights on the defense industry and stock performance, feel free to explore our related articles.
