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Conference Call Overview • Date: May 27, 2024 • Key Personnel: Cmde P.R. Hari (Chairman and Managing Director), Shri R.K. Dash (Director of Finance and CFO) • Format: Moderated by Aditya, with a listen-only mode and a Q&A session.
Company Performance • Order Book: ₹22,652.68 crore as of March 31, 2024, mainly from shipbuilding. • Key Projects: • P17 Alpha Project: Three warships • Survey Vessel Large Project: Four ships • Anti-Submarine Shallow Water Craft Project: Eight ships • Delivery Timeline: Ships expected between mid-2025 and mid-2026. • Upcoming Orders: Oceanographic Research Vessel, Fast Patrol Boats for Bangladesh, and RFPs for Next Generation Corvette Projects.
Financial Highlights • Revenue Growth: 40% increase in revenue from operations in FY24 to ₹3,593 crore. • Total Income: Increased by 48% to ₹8,892 crore. • EBITDA: Rose by 41% to ₹533 crore. • Profit After Tax (PAT): Increased by 57% to ₹357.24 crore. • Net Worth: Grew from ₹1,413 crore in FY23 to ₹1,673 crore in FY24. • Q4 FY24 Revenue: Surpassed ₹1,000 crore for the first time.
Q&A Session Insights • EBITDA Margin: Improved to 8.9% due to lower subcontracting costs and operational efficiencies. • Next Generation Corvette Project: RFP expected in June, contract signing by mid-2024. • Order Book Potential: ₹1,20,000 crore expected over the next 3-5 years. • Revenue Sustainability: Need to secure orders worth ₹20,000-25,000 crore to maintain revenue beyond 2027.
Strategic Focus Areas • Green Energy and Autonomous Platforms: Emphasis on future growth despite limited immediate revenue. • Indigenization Goals: Increase from 60% to 65% by 2030 in warship components. • Ship Repair Operations: Significant increase in activity, with ongoing projects for the Indian Coast Guard and Navy.
Future Projections • Revenue Recognition: Peak expected over the next two years, with a strong order book. • Annual Growth: Anticipated growth of 20-25% annually. • Commercial Shipbuilding: Plans to enter the market with modest initial orders.
Conclusion • Margin Expectations: Aim to sustain current profit margins around 10%. • Future Engagement: Participants invited to send further questions via email.
Meeting Overview • Date: March 14, 2024 • Announcement Date: March 21, 2024 • Key Personnel: • Cmde PR Hari (Chairman and Managing Director) • Shri RK Dash (Director of Finance and CFO) • Shri Sandeep Mahapatra (Company Secretary) • Compliance: SEBI regulations, addressed to National Stock Exchange and BSE.
Financial Performance Highlights • Record results for Q3 and nine months ending December 31, 2023: • Revenue from operations: ₹2,576 crore (31% increase) • Total income: 34% rise • Profit After Tax (PAT): ₹245 crore (42% increase) • Current order book: ₹23,592 crore, mainly from Indian Navy projects.
Future Projects and Growth • Focus on warship building due to high order value: • Upcoming projects: Next Generation Corvettes (₹36,000 crore) and Survey Vessels (₹3,000 crore). • Anticipated RFPs in mid-2024. • Expansion plans: • Increase shipbuilding capacity from 20 to 24 concurrent constructions by 2025. • Pursuing new technologies, including autonomous platforms.
Delivery and Revenue Projections • FY'25 Deliveries: • Two Survey Vessels and two Anti-Submarine Shallow Water Crafts. • Revenue growth projection: 20-25% over the next three years. • Expected revenues by FY'25-26: ₹3,800 to ₹5,000 crore.
Capabilities and Market Opportunities • Current focus on surface ships; capability to build destroyers acknowledged. • Anticipated robust bid pipeline for commercial shipbuilding and ship repairs. • Market share in portable steel bridges: 65%, with projected revenues of ₹100-120 crore.
Supply Chain and Financial Strategy • Minimal impact from COVID-19 and geopolitical issues on supply chain. • No immediate need for additional capital or debt; aim to become a Navratna company.
Revenue Growth and Future Outlook • Peak revenue expected in FY'25 and FY'26. • Order book expected to remain around ₹25,000 crore or more over the next four years. • Ambitious goal: Achieve a turnover of ₹10,000 crore by 2030, contingent on securing key projects.
Conference Call Summary for Garden Reach Shipbuilders & Engineers Limited (November 17, 2023)
Overview of Financial Results • Focus on Q2 and H1 FY24 results ending September 30, 2023. • Key management present: Cmde P.R. Hari (Chairman & MD) and Shri R.K. Dash (Director of Finance & CFO). • Recorded session with a Q&A segment.
Company Performance Highlights • Order Book: Rs. 23,739.59 crores, including: • 19 warships for the Indian Navy. • Additional orders from Bangladesh and West Bengal. • Project Progress: • Ongoing projects: P17 Alpha frigates, Survey Vessel Large, anti-submarine shallow watercraft. • Expected delivery timelines: Late 2023 to 2026. • Green Initiatives: • Electric ferry project. • Plans for marine-capable drones and unmanned vessels.
Future Outlook • Anticipated orders from the Indian Navy valued at Rs. 70,000 crores. • Focus on export opportunities in Bangladesh and other regions.
Export Initiatives • Successful entry into the Bangladesh market. • Completed projects for Guyana, Seychelles, and Mauritius. • Future opportunities in Bangladesh, Sri Lanka, Guyana, and Scandinavian countries.
Product Development • Introduction of a 4.25-meter double lane bridge and a proprietary 5.3-meter carriageway bridge. • Collaborations with Rolls Royce and Kongsberg for high-speed marine engines and waterjets.
Financial Performance • Q2 FY24 revenue: Rs. 897.97 crores (32% YoY growth). • Total income: Rs. 969 crores (34% increase). • Profit after tax: Rs. 80.74 crores (37% rise), marking a record performance.
Q&A Session Insights • Order Backlog: Outstanding order book supports operations for the next five years. • Dry Dock Availability: 30% of dry docks currently free for new projects. • Next Generation Destroyer Orders: Initial requirement for four vessels, with potential for four more. • Revenue Recognition: FY25 and FY26 expected to be peak years for revenue growth.
Strategic Initiatives • Development of autonomous platforms for defense forces. • Collaboration with Indian startups and MSMEs for autonomous vessels. • Advancements in green energy, including electric ferry delivery. • Transitioning from assembly to manufacturing of diesel engines with Rolls Royce.
Conclusion • Management expressed optimism for future growth and invited further inquiries from investors. • The call concluded with a thank you and instructions for follow-up questions.
Q1 FY 2023-24 Financial Results • Best quarterly performance in company history. • Key achievements: • Delivery of a passenger-cum-cargo ferry. • Launch of three warships. • Contract with Indian Navy for naval surface guns. • Financial highlights: • Revenue from operations: ₹756 crore (30% increase). • Profit after tax: ₹76.68 crore (64% increase). • Earnings per share: 6.69. • Order book: ₹24,546 crore.
Project Updates • P17 Alpha Project: • 58% physical progress; deliveries expected mid-2025 to mid-2026. • Anti-Submarine Shallow Watercraft (ASW) Project: • First ship delivery in current financial year; completion of all ships by FY '27. • Revenue peak anticipated in 2025.
Market Opportunities • Strong Q1 performance and ongoing momentum. • Upcoming projects: • ₹1,200-1,400 crore Hospital Vessel. • ₹2,000 crore Ocean-Going Patrol Vessel. • ₹750-900 crore Polar Research Vessel. • Future RFPs for multi-purpose vessels and Next-Generation Survey Vessels.
Order Book Breakdown • Remaining values: • P17 Alpha: ₹13,745 crore. • ASW: ₹5,438 crore. • Survey Vessel Large: ₹1,382 crore. • Next Generation Corvette: ₹36,000 crore for eight vessels.
Strategic Focus • Emphasis on domestic warship building and diversification into autonomous vessels and green energy platforms. • Aim for a 10% PAT margin, with industry norms at 7.5% to 8%.
Competition and Growth Strategy • Establishing a dedicated division for ship repairs to quadruple revenue in this segment. • Strategic outsourcing to align with government policies on public-private partnerships.
Future Outlook • Confidence in maintaining a healthy order book and revenue stream. • Commitment to adapting to new technologies and executing strategic vision effectively.
Announcement Details • Date of announcement: June 6, 2023 • Conference call date: May 30, 2023 • Purpose: Discuss audited financial results for Q4 and FY23 • Key participants: Cmde P.R. Hari (Chairman and Managing Director), Shri R.K. Dash (Director of Finance and CFO) • Compliance: SEBI regulations
Financial Performance Highlights • Strong order book: ₹25,111.29 crore (up from ₹24,147 crore) • Record revenue: • Revenue from operations: ₹2,561 crore (up 45.7%) • Total income: ₹2,763 crore • Profit after tax: ₹228 crore (up 20%) • Earnings per share: Increased by 20% • Key achievements: • Two projects completed ahead of schedule • Seven launches and six keel layings
Future Projections • Anticipated revenue growth in FY24, FY25, and FY26 • P17 Alpha project in advanced production stages • Order book expected to peak in coming years
Project Updates • Next-Generation Corvette project: • AON valued at ₹36,000 crore for eight ships • RFP expected in H2 2024, contracts by mid-2025 • Breakdown of order book includes projects like P-17 Alpha and Anti-Submarine Shallow Water Craft
Defense Manufacturing Focus • New order for 30 mm Naval Surface Guns: • Collaboration with established OEMs • Execution timeline: 12 to 18 months, margins of 7% to 8% • Current projects: Building 106 warships and providing portable steel bridges
Challenges and Concerns • EBITDA margins: • Typical shipbuilding margins: 7% to 10% • GRSE's PAT margin: ~7.8% • EBITDA margin for FY23: 12.7% • Sustainability of margins post-large projects like P-17 Alpha
Government and Market Insights • No budget constraints expected for upcoming high-value projects • Emphasis on indigenous production in Indian shipyards • Assurance of no supply issues for Anti-Submarine Shallow Watercraft engines
Capacity and Growth • GRSE's capacity to handle large orders confirmed • Unique position with three independent facilities in Kolkata • Confidence in execution strategy and focus on product diversification and margin improvement
Conclusion • Cmde P.R. Hari expressed confidence in GRSE's future growth and execution capabilities, concluding the call with appreciation for participants.