Two defence PSU stocks jump over 10% on strong Q1 results

Shares of defence PSU firms GRSE and Mazagon Dock Shipbuilder jumped over 10% in Monday's trade on BSE after the June quarter results.

Warship maker GRSE shares rallied 13% to Rs 661 on BSE after the company reported its best-ever net profit of Rs 77 crore in the June quarter. The firm saw a 54% rise in net profit as compared to the Rs 50 crore it reported in the year-ago period.

Its total income stood at Rs 827 crore in the first quarter of the current fiscal, 33% higher than Rs 621 crore in the year-ago period.


Revenue from operations for the quarter under review grew 30% to Rs 756 crore as compared to Rs 580 crore last year. Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) was Rs 117 crore as against Rs 74 crore, registering a growth of 58%.

"The current fiscal year has started on a very vibrant note for GRSE with the shipyard recording the best-ever quarterly results in the history of the company. The shipyard gears up for the launch of the third Frigate of P17A on August 17... GRSE shall continue to play a major role in encouraging industrial growth," GRSE Chairman and Managing Director Cmde PR Hari said.

On a year-to-date basis, GRSE shares surged nearly 40%, while it has delivered multibagger returns of over 135% in the last one year.

Meanwhile, Mazagon Dock Shipbuilders shares surged over 10% to Rs 1,919 after the firm on Thursday reported a 39.8% YoY increase in net profit at Rs 314.3 crore for the first quarter of FY24. In the corresponding quarter last year, Mazagon Dock Shipbuilders posted a net profit of Rs 224.8 crore, the company said in a regulatory filing.

However, the company's total revenue stood at Rs 2,172.8 crore during the period under review, which fell 3% against Rs 2,230 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA declined 1.2% to Rs 171.8 crore in the first quarter of this fiscal over Rs 173.9 crore in the corresponding period in the previous fiscal.

Meanwhile, EBITDA margin stood at 7.9% in the reporting quarter as compared to 7.8% in the corresponding period in the previous fiscal.

On a year-to-date basis, Mazagon Dock Shipbuilders shares delivered multibagger returns of over 137%, while it has rallied over 480% in the last one year.

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