GRSE Q2 FY25 PAT up 21% Y-o-Y to Rs 98 Cr

Key Takeaways from GRSE Financial Performance:

• GRSE reported a 27% increase in total income for Q2 FY25, reaching Rs 1,228 crore, compared to Rs 969 crore in Q2 FY24. 
• Revenue from operations grew by 28%, reaching Rs 1,153 crore, while Profit Before Tax (PBT) increased by 22% to Rs 131 crore. Profit After Tax (PAT) for Q2 was Rs 98 crore, a 21% rise.
• For H1 FY25, GRSE’s total income grew 29% to Rs 2,311 crore, with PAT rising 18% to Rs 185 crore.
• GRSE's strong performance is attributed to its growing order book, including projects for the Indian Navy and specialised vessels, with more orders expected in the future.

The company’s Profit Before Tax (PBT) stood at Rs 131 crore, a 22% increase from Rs 107 crore in the same quarter last year. Profit After Tax (PAT) for Q2 was Rs 98 crore, reflecting a 21% rise.

GRSE reported a total income of Rs 1,228 crore in Q2 FY25, a 27% increase compared to Rs 969 crore in Q2 FY24. Revenue from operations also grew 28%, reaching Rs 1,153 crore. 

For the first half of FY25, GRSE’s total income reached Rs 2,311 crore, up from Rs 1,796 crore in H1 FY24, a growth of 29%. PAT for H1 FY25 stood at Rs 185 crore, an 18% increase from Rs 157 crore in H1 FY24.

The company’s strong performance is attributed to its solid order book, including projects for the Indian Navy, commercial vessels, and specialised research vessels. 

About Garden Reach Shipbuilders & Engineers Limited:

Garden Reach Shipbuilders & Engineers Limited (GRSE), established in 1884, began as a small workshop for repairing vessels. Taken over by the Government of India in 1960, GRSE became the first shipyard in independent India to build a warship for the Indian Navy, INS Ajay, in 1961. With over 785 platforms delivered, including 108 warships for the Indian Navy and other international clients, GRSE holds the record for the most warships built by any Indian shipyard. It also manufactures marine engines, deck machinery, and steel bridges. GRSE has won several prestigious awards and continues to grow with advanced infrastructure and design capabilities.

Key Takeaways from SJS Enterprises Subscription:

• The company has successfully subscribed to 10,50,000 Class A Equity Shares of Suryaurja One Private Limited (SOPL) as part of its solar power acquisition plan.
• This follows the Share Subscription and Shareholders' Agreement (SSSHA) and Power Supply & Offtake Agreement (PSOA) signed with Sunsource Energy Private Limited (SEPL) and SOPL in August 2024.
• The acquisition is a key step in securing the supply of up to 3MWp of solar power, supporting the company’s renewable energy goals.
• The move is part of SJS Enterprises' ongoing efforts to enhance sustainability and meet its energy needs through renewable sources.

This follows the company's earlier communication in August 2024, where it had informed stakeholders about entering into a Share Subscription and Shareholders' Agreement (SSSHA) and a Power Supply & Offtake Agreement (PSOA) with Sunsource Energy Private Limited (SEPL) and Suryaurja One Private Limited.

The acquisition of these shares is a key step in the arrangement to secure the supply of up to 3MWp of solar power for SJS Enterprises. 

The move is in line with the company’s commitment to enhancing its sustainability efforts and meeting its energy requirements through renewable sources.

About SJS Enterprises Limited:

SJS Enterprises Limited is a leading player in India’s decorative aesthetics industry, specialising in design-to-delivery solutions for the automotive and consumer appliance sectors. Founded in 1987, the company manufactures a wide range of products, including decals, 3D appliques, aluminium badges, and chrome-plated plastic parts. With a strong focus on new product development and quality, SJS serves global giants like Motorola, Whirlpool, and Hewlett Packard. The company operates state-of-the-art facilities in Bengaluru and Pune and has a growing international presence. SJS’s commitment to innovation, quality, and customer relationships has made it a preferred partner for top OEMs worldwide.

Key Takeaways from Kirloskar Industries Fianncial Performance:

• KIL reported a net profit of Rs 35 crore, a 467% increase from Rs 6 crore in Q1 FY25, with total income rising 213% to Rs 50 crore.
• Total income for H1 FY25 was Rs 66 crore, down 15% from Rs 78 crore in H1 FY24, while net profit decreased by 15% to Rs 41 crore compared to Rs 48 crore in H1 FY24.
• KIL's consolidated income for Q2 FY25 grew by 9% to Rs 1,706 crore, while net profit increased 38% to Rs 91 crore compared to Q1 FY25.
• Consolidated total income for H1 FY25 was Rs 3,277 crore, up 5% year-on-year, but net profit decreased 15% to Rs 158 crore from Rs 185 crore in H1 FY24.

For the second quarter of FY25, KIL's standalone net profit surged to Rs 35 crore, a remarkable 467% increase compared to Rs 6 crore in the previous quarter (Q1 FY25). The company also posted a significant rise in total income, reaching Rs 50 crore in Q2, which is a 213% growth from Rs 16 crore in Q1 FY25.

While the company saw robust results for Q2, its performance for the first half (H1) of FY25 showed a slight dip compared to the same period last year. Total income for H1 FY25 was Rs 66 crore, a 15% decrease from Rs 78 crore in H1 FY24, while net profit for the half-year stood at Rs 41 crore, down by 15% from Rs 48 crore in H1 FY24.

On a consolidated basis, KIL recorded a 9% increase in total income for Q2 FY25, which reached Rs 1,706 crore, compared to Rs 1,572 crore in Q1 FY25. Consolidated net profit for Q2 FY25 rose by 38% to Rs 91 crore, compared to Rs 66 crore in the previous quarter. However, the company’s consolidated results for the first half of the year showed a modest 5% growth in total income, which amounted to Rs 3,277 crore, while net profit for H1 FY25 stood at Rs 158 crore, reflecting a 15% decrease from Rs 185 crore in H1 FY24.

Commenting on the Q2 and H1 results, Mr.Mahesh Chhabria, Managing Director, KIL, said “KIL has had a stable quarter, marked by significant developments and steady growth of the subsidiaries. During this quarter, the merger of Kirloskar Ferrous Industries Limited (KFIL) and ISMT Limited was successfully completed. KFIL & ISMT have commenced operations as a unified entity. 

KFIL continues to play a crucial role as our material subsidiary, delivering a commendable 7% revenue growth despite the challenging market environment. On the real estate front, our subsidiary, Avante, is making steady progress on its 1.6 million square foot commercial project in Pune, which remains on track as planned.” 

About Kirloskar Industries Limited:

Kirloskar Industries Limited is a publicly listed company on both the Bombay Stock Exchange and the National Stock Exchange. Founded in 1978, the company is involved in wind power generation and has expanded into real estate development through its fully owned subsidiary, Avante Spaces Limited. Additionally, the company invests in shares of other group companies and leases out commercial properties.

Key Takeaways from the Announcement

• COFEPRIS imposed a fine on Dr. Reddy’s Laboratories for deviations in regulatory filing for API import.
• The penalty does not pose a substantial impact on Dr. Reddy's financials but emphasizes compliance improvements.
• Dr. Reddy’s is reviewing its processes to align with COFEPRIS standards and avoid future lapses.

The order imposes a fine of MXN 651,420 (equivalent to approximately INR 27 lakh) due to non-compliance with regulatory guidelines. 

According to the notice, the penalty results from discrepancies in filing information related to the importation of a reference standard for one of Dr. Reddy’s active pharmaceutical ingredients (APIs). Specific issues cited include an inconsistency in the date on the invoice and a mismatch between the reference standard’s name and the import license.

The company received the order on November 13, 2024, and stated that while the financial impact of the penalty is limited to the fine amount, it is taking steps to address and prevent similar issues in the future.

About Dr Reddy’s Laboratories Limited:

Dr Reddy’s Laboratories Limited is a global pharmaceutical company based in Hyderabad, India, founded in 1984. The company focuses on providing affordable and innovative medicines, guided by the mission of "Good Health Can’t Wait." They offer a range of products, including active pharmaceutical ingredients (APIs), generics, branded generics, biosimilars, and over-the-counter medications. Their main therapeutic areas include gastrointestinal issues, cardiovascular health, diabetes, oncology, pain management, and dermatology.

In addition to operating in the key markets in the USA, India, Russia and CIS countries, China, Brazil, and Europe, the firm has a strong scientific base and commitment to innovation, high standards set on sustainability and corporate governance, having published its first Sustainability Report in 2004. ESG goals at Dr Reddy's are environmental practice improvement, enhancing patient access and affordability, promoting diversity and governance.