GRSE Net Profit Rises 12% to Rs 172 Crore in Q2 as Bajaj Hindusthan Sugar Loss Widens to Rs 121 Crore
Indian equity markets tracked an eventful corporate scorecard during the September quarter (Q2) earnings season, led by steady execution in defence manufacturing and mixed trends across commodities and industrials. Defence PSU Garden Reach Shipbuilders & Engineers (GRSE) posted solid bottom-line growth, whereas sugar producer Bajaj Hindusthan Sugar saw its quarterly losses deepen. Meanwhile, major counters including Tata Power and state-run Hindustan Copper remained under active investor tracking ahead of their respective financial releases.
GRSE Posts 12% Profit Rise as Execution Gains Pace
State-owned defence shipbuilder Garden Reach Shipbuilders & Engineers reported a consolidated net profit of Rs 171.97 crore for the July-September quarter, reflecting an 11.83% increase compared to Rs 153.79 crore in the corresponding quarter of the previous financial year.
Key highlights of GRSE's quarterly scorecard include:
- Revenue Expansion: Revenue from operations grew 8.9% year-on-year to Rs 1,827 crore, up from Rs 1,677 crore in the year-ago period.
- Margin Improvement: Operating performance held firm despite input cost increases, with the net profit margin rising to 9.47% from 9.17% in the year-ago period.
- Earnings Per Share: Basic earnings per share (EPS) increased to Rs 30.10 from Rs 23.92 in Q2 of the preceding fiscal.
- Cost Base: Total expenses rose roughly 8% year-on-year to Rs 1,654 crore compared to Rs 1,537 crore in the prior-year period.
Shares of GRSE saw strong intraday momentum, surging up to 3% to touch Rs 2,260 apiece before closing 1.24% higher at Rs 2,225.40 on the NSE.
Bajaj Hindusthan Sugar Loss Widens Despite Narrowing EBITDA Deficit
Bajaj Hindusthan Sugar Ltd reported a consolidated net loss of Rs 121.28 crore for the quarter ended September 30, marking a 15.23% widening against a net loss of Rs 105.25 crore in the corresponding quarter of the previous fiscal. Top-line performance faced pressure, with revenue declining 16.3% year-on-year to Rs 968 crore compared to Rs 1,157 crore a year earlier.
Segmental and operational details:
- Sugar Division Drag: Revenue from the flagship sugar segment dropped to Rs 852.14 crore from Rs 1,093.73 crore in the year-ago quarter, though its loss before tax and interest narrowed to Rs 46.56 crore against Rs 65.51 crore previously.
- Distillery Growth: The distillery business provided a bright spot on top-line delivery, with revenue rising to Rs 109.56 crore from Rs 51.02 crore, although segment losses expanded slightly to Rs 14.08 crore.
- Power Segment: Revenue from the power business dropped to Rs 2.67 crore from Rs 17.08 crore, with segment losses widening to Rs 28.06 crore.
- Operating EBITDA: Earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss narrowed to Rs 43 crore compared to an EBITDA loss of Rs 54.3 crore a year earlier.
- Corporate Action: The company's board formally cleared the divestment of its 100% equity stake in a subsidiary.
Tata Power and Hindustan Copper Draw Attention
Beyond reported scorecards, investor focus remained firmly centered on upcoming releases from heavyweight names:
- Tata Power: The utility major’s shares traded flat at Rs 359.50 to Rs 364.80 ahead of its second-quarter earnings release. D-Street expectations have been pegged around performance gains in its renewable energy pipeline, plant load factor improvement at thermal facilities, and loss moderation at the Mundra ultra mega power plant.
- Hindustan Copper: Shares of the state-owned miner advanced 1.48% to finish at Rs 436.35 on the NSE ahead of its board meeting to consider Q2 performance, with markets tracking copper realisations and mining output metrics.
