Garden Reach Shipbuilders & Engineers ‘s Q2 Financial results: Revenue Grows by 28.4% YoY

The comprehensive analytics outlining the performance and outlook of Garden Reach Shipbuilders & Engineers Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Garden Reach Shipbuilders & Engineers Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 28.4 %. However, it did see a marginal increase of 14.18 % from the previous quarter. Expenses ticked up slightly by 13.71 % quarter-on-quarter, aligning with the annual rise of 27.68 %. Operating profit, while up 40.93 % compared to last year, faced a quarter-on-quarter increase of 22.19 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 0.53 %, but an expansion of 0.39 % sequentially. Other income rose by 1.41 % compared to the last quarter, despite an annual growth of 4.7 %. Interest expenses dropped significantly by -43.16 % from the previous quarter, yet the year-over-year decrease remains at a moderate -2.82 %. Depreciation costs climbed by 2.59 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 3.48 %. Profit before tax grew annually by 21.43 % but saw an increase from the preceding quarter by 13.06 %.
Tax expenses as a percentage of profits increased slightly by 0.21 % compared to last year, with a more notable quarter-on-quarter increase of 0.63 %. Net profit rose by 21.09 % year-on-year but experienced a 12.13 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 21.13 % but a quarterly rise of 12.22 %. In summary, Garden Reach Shipbuilders & Engineers Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Garden Reach Shipbuilders & Engineers Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 28.4 % year-on-year growth, however, there was a minor increase of 14.18 % from the previous quarter. Expenses rose by 27.68 % compared to the previous year, with a 13.71 % increase quarter-on-quarter. Operating Profit surged by 40.93 % annually, and saw a 22.19 % increase from the last quarter.
Net Profit showed yearly increase of 21.09 %, and experienced a 12.13 % increase from the previous quarter. Earnings Per Share (EPS) rose by 21.13 % annually, however rose by 12.22 % compared to the last quarter. In essence, while Garden Reach Shipbuilders & Engineers Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.