State-run Garden Reach Shipbuilders Ltd. has set a revenue target of ₹10,000 crore for financial year 2030. That is a jump of over 3x from the ₹3,592 crore revenue that the company had reported at the end of financial year 2024.
In an interaction, Commodore PR Hari, IN (Retd.), the company’s Chairman and Managing Director said that the target set for financial year 2030 are achievable.
Garden Reach currently has an order book worth ₹25,231 crore, 90% of which comes through the ship building segment.
Within the shipbuilding segment, 85% to 90% of the order book comes from domestic shipbuilding orders, including those from the Indian Navy.
Commodore Hari further mentioned that the company is expecting to win orders worth ₹1,500 crore to ₹2,000 crore between the next three to six months and these orders also include export orders.
“To touch ₹10,000 (revenue) by 2030 that is our stated mission by 2030. If you just see our current order book, including the small orders that are on the anvil – I mentioned about ₹1,500 crore – ₹2,000 crore – they all will get exhausted by 2029 and if we get the next generation order and a couple of big orders that are coming from the Navy, we will definitely be able to cross ₹10,000 threshold by 2030,” Commodore Hari said.
Garden Reach is also anticipating an update on the Indian Navy’s Corvette order for which it has placed bids. The total value of the Corvette order is said to be ₹36,000 crore.
Garden Reach has also maintained its revenue growth guidance of 25% for the current financial year. For the June quarter, Garden Reach had reported a revenue growth of 34% year-on-year.
Although the company struggled on the margin front, while peers like Mazagon Dock and Cochin Shipyard saw a healthy margin expansion, the management expressed confidence that the margins will recover to levels of 8% in the near-term.
Despite the jump seen in the June quarter, the management of Mazagon Dock had said that these levels will not sustain and eventually taper off. From 27% margins in the June quarter, Mazagon Dock’s CMD Sanjeev Singhal said that 10% to 12% will be healthy margin levels.
“As far as the margins are concerned, there has been a slight dip in our margins, but we are very confident of maintaining profit after tax (PAT) margins, what we had indicated earlier, plus 8% in the coming quarters and years,” the Garden Reach CMD said.
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