Garden Reach Shipbuilders Share Price up 5% on Germany Contract Win

Shares of Garden Reach Shipbuilders soared by 5% to ₹1,790 in the early morning trade on March 25. The ship building company signed a contract with Germany-based Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG to construct and deliver the seventh and eighth 7,500 DWT multi-purpose vessels (MPVs).

As per a regulatory filing on March 24, the agreement was formalised in Germany’s Hamburg, which marks the completion of an eight-ship series under a previous option agreement between the two firms.

GRSE’s total order for these vessels is valued at $108 million, with no changes in financial terms. These vessels are 120-metre-long and 17-metre wide, which is designed to support cargo worth 7,500 tonnes.

The ships are built to accommodate large windmill blades, underlining GRSE’s expertise in crafting specialised vessels for evolving industry needs.

Previously, the company signed a contract with PWD Nagaland to supply eight double-lane modular steel bridges, strengthening connectivity in the state.

During the December quarter, GRSE reported a net profit of ₹98 crore up by over 12%, while revenue was up by 37% YoY to ₹1,271 crore.

As of 9:45 am, shares of the company were trading at ₹1,737, up by 2% from the previous day’s close on the NSE.