EPFO Payroll Data for December 2024: Posted Growth of 2.74% in Net Addition

The Employees’ Provident Fund Organization (EPFO) has released the provisional payroll data for December 2024, showcasing significant employment trends and member additions.

Net Addition in December 2024

In December 2024, EPFO recorded a net addition of 16.05 lakh members. This represents a 9.69% increase in net payroll additions compared to November 2024, indicating a strong growth trajectory in employee enrollment.

This indicates a YoY growth of 2.74% increase in net payroll additions compared to December 2023, signalling a positive growth trend in employment opportunities and heightened awareness of employee benefits due to EPFO’s outreach initiatives.

Key Highlights of EPFO Payroll Data (December 2024)

  • New Subscribers: EPFO enrolled 8.47 lakh new subscribers in December 2024, marking a 0.73% year-on-year growth from December 2023. This increase can be attributed to rising employment opportunities, greater awareness of employee benefits, and EPFO’s effective outreach campaigns.
  • Age Group 18-25 Leads Payroll Addition: The 18-25 age group significantly dominated the new subscriber additions, accounting for 4.85 lakh new subscribers, which makes up 57.29% of the total additions in December 2024. This group also saw a 0.91% increase from November 2024 and a 0.92% increase from December 2023. Additionally, the net payroll addition for this age group reached approximately 6.85 lakh, reflecting a 16.91% increase compared to November 2024.
  • Rejoined Members: Approximately 15.12 lakh members who had previously exited the EPFO rejoined in December 2024. This represents a 5.10% increase from November 2024 and a significant year-over-year growth of 25.76% compared to December 2023. These members opted to transfer their accumulated funds rather than apply for a final settlement, ensuring the continuation of their long-term financial and social security benefits.
  • Growth in Female Membership: Female membership showed considerable growth, with around 2.22 lakh new female subscribers added in December 2024, reflecting a 6.34% year-over-year increase. The net female payroll addition stood at 3.03 lakh, marking a 4.77% increase compared to December 2023. This rise in female participation indicates a broader trend towards a more inclusive and diverse workforce.
  • State-wise Contribution: The top five states and Union Territories (UTs) accounted for 59.84% of the net payroll addition, contributing around 9.60 lakh members in total. Maharashtra led with 21.71% of the net payroll addition, followed by Karnataka, Gujarat, Haryana, Delhi, Tamil Nadu, Uttar Pradesh, and Telangana, each contributing over 5% of the total net payroll.
  • Industry-wise Trends: Significant growth in net payroll additions was observed in sectors such as Expert Services, Building and Construction, Other Industries, Trading – Commercial Establishments, and Financing Establishments. Expert Services, including manpower suppliers and security services, accounted for 41.23% of the total net payroll addition.

Conclusion

It is important to note that the payroll data is provisional and subject to updates. EPFO continuously updates member records, leading to revisions in earlier data. This includes modifications from monthly filings, corrections to earlier reports, and updates on exit dates. Data for the period from September 2017 onward is made available each month, with new enrollments through Aadhaar-validated Universal Account Numbers (UAN), exits, and re-joins all factored into the net payroll figures.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Paytm Signed MoU With DPIIT to Bolster Fintech Startups in India

On February 26, 2025, Paytm (One97 Communications Limited) signed an MoU with the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India to encourage innovation and boost the growth of manufacturing and fintech startups in India.

Scope of Partnership

As part of the Paytm for Startups program, Paytm will introduce specific initiatives to assist fintech hardware manufacturers, such as makers of Soundbox and PoS/EDC devices, in achieving efficient growth. These initiatives will include mentorship, funding opportunities via investor connections and incubation programs, regulatory support through industry-focused workshops, and ongoing impact tracking. Additionally, Paytm Foundation, through its CSR initiatives, is supporting deep-tech startups in areas like Climate Tech, Web3, Agritech, and Mobility.

Through this collaboration, Paytm will offer startups mentorship, infrastructure support, market access, and funding opportunities, aiding them in scaling and innovating. The initiative is designed to provide entrepreneurs with the necessary resources to develop advanced payment and financial technology solutions.

According to DPIIT, this partnership aims to guide fintech hardware startups with mentorship and innovation, helping them build and scale payment and financial tech solutions. It also offers regulatory and compliance support by hosting workshops and providing guidance in collaboration with industry and government entities. Furthermore, the partnership will provide infrastructure and market access, allowing startups to test, validate, and enhance their products using Paytm’s broad merchant network.

Management Take on This Collaboration

Mr. Sanjiv, Joint Secretary, DPIIT, emphasized the significance of this collaboration, stating, “This partnership with Paytm marks a crucial step in strengthening India’s startup ecosystem. By leveraging Paytm’s fintech expertise and infrastructure, we aim to support entrepreneurs in overcoming challenges, scaling their ventures, and contributing to India’s emergence as a global innovation hub.”

Vijay Shekhar Sharma, Founder & CEO of Paytm, remarked, “Under Prime Minister Narendra Modi’s leadership, this is the best time for startups to launch and scale. Paytm is committed to empowering entrepreneurs through mentorship, financial support, and access to cutting-edge technology. Through this collaboration, we will ensure that startups receive the necessary tools to succeed from inception to growth.”

Conclusion

Through this collaboration, DPIIT and Paytm reinforce their shared commitment to making India a global hub for innovation, promoting technological progress, and driving economic development.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

This Defence PSU Considering Dividend Payment: Do You Own?

On February 25, 2025, Bharat Electronics Ltd (BEL), the state-owned company through an exchange filing announced it has scheduled a board meeting on Wednesday, March 5, to consider an interim dividend for shareholders. BEL has not announced the record date for the said interim dividend.

BEL Dividend History

Ex-Date Dividend Type Dividend Amount (₹)
Aug 14, 2024 Final 0.80
May 22, 2024 Interim 0.70
Feb 09, 2024 Interim 0.70
Aug 17, 2023 Final 0.60
Mar 24, 2023 Interim 0.60

BEL Strong Order Book

On February 8, 2025, Bharat Electronics Limited (BEL), a Navratna PSU, signed a ₹610 crore contract to supply an Electro-Optic Fire Control System (EOFCS) to the Indian Navy. This fully indigenous system will be installed and integrated into Indian naval platforms. It is capable of panoramic/sector search, tracking various types of targets both day and night and engaging the tracked targets using medium-range and short-range gun mounts.

Additionally, BEL has secured a ₹1,034 crore (excluding taxes) contract with the Ministry of Defence for the supply of Software Defined Radios (SDR) and Data Communication Terminals (DCT) for the Indian Coast Guard. These state-of-the-art radios, co-developed by DEAL (DRDO) and BEL, support multi-band, multi-channel, and multi-role/multi-mission operations to support network-centric warfare. With these new orders, BEL’s total accumulated orders for the current financial year have reached ₹13,147 crore.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

NGL Fine-Chem Settled Case with SEBI: Agreed to Pay ₹92.21 Lakh

On February 25, 2025, NGL Fine-Chem, a pharmaceutical company, and its promoters reached a settlement with the capital market regulator, the Securities and Exchange Board of India (SEBI) regarding alleged violations of shareholding disclosure requirements. Both, the company and the promoters have agreed to pay a total of ₹92.21 lakh to resolve the issue.

The settlement involves NGL Fine-Chem, PCI Ferrmone Chemicals, and two promoters, Rajesh Lawande and Rahul Nachane. Of the total amount, NGL Fine-Chem contributed ₹54.42 lakh, while the other three parties each paid ₹12.6 lakh. This settlement follows a request from the involved entities to SEBI, seeking a resolution of the alleged violations under the regulator’s settlement framework.

In a ruling on Tuesday, SEBI acknowledged the settlement, noting that the payment had been received, and the ongoing adjudication proceedings initiated by a Show Cause Notice issued on December 29, 2023, had been concluded as per the Settlement Regulations.

SEBI’s Investigation

The case emerged from issues surrounding incorrect shareholding disclosures. SEBI’s investigation began after NGL Fine-Chem, in July 2022, applied for an exemption from the requirement to make an open offer following a transfer of shares to a Trustee.

During the review of the application, SEBI allegedly discovered that the promoter and promoter group’s shareholding had increased from 65.45% in June 2019 to 73.83% in September 2019. The exemption request was subsequently withdrawn, but SEBI continued its investigation into the disclosure inaccuracies for the period from March 2002 to June 2019.

The investigation revealed that NGL Fine-Chem had inaccurately categorized PCI Ferrmone Chemicals as “public/non-promoter” instead of “promoter & promoter group” in its filings for quarters between December 2002 and June 2019. Additionally, SEBI found that NGL Fine-Chem had made incorrect shareholding disclosures in 31 quarters about PCI Ferrmone Chemicals’ stake in the company.

Allegation by SEBI

Further, it was alleged that promoters Rajesh Lawande and Rahul Nachane failed to include PCI Ferrmone’s shareholding in their takeover disclosures between 2011 and 2019.

These findings indicated violations of SEBI’s Listing Agreement, LODR (Listing Obligations and Disclosure Requirements) regulations, and SAST (Substantial Acquisition of Shares and Takeovers) regulations, primarily due to inaccurate disclosures and failure to correctly report promoter shareholding.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

UltraTech Demerger with Kesoram Industries: Entry into Wires & Cables Business

On Tuesday, February 25, 2025, UltraTech Cement Ltd, the flagship company of the Aditya Birla Group, announced that its board of directors had approved the implementation of a demerger scheme involving Kesoram Industries, effective from March 1, 2025. Under this scheme, UltraTech will issue 1 equity share of ₹10 each for every 52 equity shares of ₹10 each held by Kesoram’s shareholders as of the record date.

Preference Shareholders’ Exchange

As part of the demerger process, Kesoram’s preference shareholders will receive 54,86,608 fully paid-up 7.3% non-convertible redeemable preference (NCRP) shares of ₹100 each. This will be in exchange for the 90,00,000 5% cumulative NCRP shares of ₹100 each currently held by Kesoram’s preference shareholders.

Moreover, 8,64,275 fully paid-up 7.3% NCRP shares of ₹100 each will be issued in exchange for the 19,19,277 optionally convertible redeemable preference shares of ₹100 each held by Kesoram’s preference shareholders. The record date for equity shareholders will be announced by Kesoram Industries.

Expansion into Wires and Cables Segment

In a strategic move, UltraTech Cement has revealed its plans to expand into the wires and cables segment with an investment of approximately ₹1,800 crore over the next two years. This initiative is part of the company’s strategy to diversify and strengthen its presence in the construction value chain.

The board of UltraTech Cement has approved this new venture, which will be executed through its Building Products Division. The goal is to establish UltraTech as a comprehensive Building Solutions provider, leveraging its expertise in manufacturing and customer relationships to offer high-quality wires and cables.

New Manufacturing Facility in Gujarat

UltraTech plans to set up a manufacturing plant for wires and cables near Bharuch, Gujarat, which is expected to be operational by December 2026. This expansion is aimed at enhancing the company’s market share in the growing wires and cables sector.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Best Sugar Stocks for March 2025 – Based on 5Y CAGR

India is the 2nd-largest producer of sugar globally, after Brazil. Sugarcane is primarily grown in nine states: Uttar Pradesh, Maharashtra, Karnataka, Punjab, Andhra Pradesh, Bihar, Gujarat, Haryana, and Tamil Nadu. As a key agro-based industry, it plays a significant role in the rural economy. The demand for sugarcane and sugar in India continues to rise due to their widespread use in industries such as food and beverages, bakery, confectionery, and more. In this article, we will explore the best sugar stocks based on 5Y CAGR.

Best Sugar Stocks for March 2025 – Based on 5Y CAGR

Name Market Cap (₹ in crore) 5Y CAGR (%)
Triveni Engineering and Industries Ltd 8,488.86 38.16
Shree Renuka Sugars Ltd 6,362.06 33.50
E I D-Parry (India) Ltd 12,344.20 28.44
Balrampur Chini Mills Ltd 9,477.30 23.92

Note: The best sugar stocks were selected and sorted based on 5Y CAGR from the Nifty 500 Universe as of February 25, 2025

Overview of the Best Sugar Stocks for March 2025

Triveni Engineering and Industries Ltd

Triveni Engineering and Industries Ltd is an Integrated and diversified conglomerate in the areas of sugar, ethanol and engineering. it is located strategically in the sugarcane-rich western and central belt of UP. Sugar prices in Q3 FY 25 were subdued, they have firmed up substantially recently based on lower estimates of net production of approximately 27 million tonnes of sugar in Sugar Season (SS) 2024-25 and timely announcement of exports.

Key metrics:

  • Return on Capital Employed (ROCE): 14.2%
  • Return on Equity (ROE): 14.8%

Shree Renuka Sugars Ltd

Shree Renuka Sugars Ltd does manufacturing and refining of sugar, ethyl alcohol, ethanol, generation and sale of power. During FY 2024, the company’s total income was ₹1,13,674 million, compared to ₹91,065 million in FY 2023. The profit for the year ended March 31, 2024, was -₹6,272 million, compared to a loss of ₹1,967 million in FY 2023.

Key metrics:

  • ROCE: 10.2%

E.I.D. Parry (India) Limited

E.I.D. Parry (India) Limited (E.I.D. Parry) is into manufacturing of sugar in India. The sugar segment’s revenue for the current quarter stood at ₹391 Crore, compared to ₹435 Crore in the same quarter last year, reflecting a 10% decline due to a reduced release quota. The segment posted a loss of ₹49 Crore, up from a loss of ₹14 Crore in the corresponding quarter of the previous year. This was driven by lower cane volume (12.70 LMT in Q3 Dec ’24 vs. 17.80 LMT in Q3 Dec ’23), reduced recovery, and increased cane costs.

Key metrics:

  • ROCE: 13.5%
  • ROE: 20.3%

Balrampur Chini Mills Ltd

Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. During Q3FY25, the sugar segment delivered strong results, supported by improved margins. The distillery segment, however, faced challenges due to lower recovery induced impacted by reduced Pol%.

Key metrics:

  • ROCE: 13.8%
  • ROE: 13.5%

 

Conclusion

Investing in sugar stocks can be promising, but it comes with certain risks and factors to consider. The sector is heavily influenced by agricultural conditions, government policies, and global commodity prices. While sugar companies may benefit from favourable weather conditions, higher release quotas, and improved recovery rates, they are also susceptible to challenges like fluctuating cane prices, cost pressures, and regulatory changes.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Active vs Passive: A Look at Angel One Nifty Total Market Index Fund

Investing is a journey that can feel like navigating a maze—there are numerous options to choose from, each promising to lead you to financial success. Among the most popular choices are Exchange-Traded Funds (ETFs) and actively managed mutual funds. But, the question remains: Can active managers beat the market? And how do ETFs stack up in comparison? Let us find answers in this blog

What Are ETFs and Actively Managed Mutual Funds?

ETFs (Exchange-Traded Funds) are investment funds that hold a collection of assets, such as stocks, bonds, or commodities, and trade on stock exchanges much like individual stocks. They aim to replicate the performance of an index, like the Nifty 50 and typically have lower fees due to their passive management approach.

Actively Managed Mutual Funds, on the other hand, are overseen by professional fund managers who make decisions on which securities to buy and sell. The goal is to outperform a benchmark or index by selecting investments that will beat the market, often making them more expensive in terms of fees due to the hands-on approach.

Advantages of ETFs

  • Lower Fees: ETFs typically charge much lower expense ratios than actively managed mutual funds because they don’t require a team of managers to make investment decisions.
  • Diversification: With a single investment, ETFs provide exposure to a wide array of stocks, sectors, or bonds.
  • Transparency and Liquidity: ETFs are traded on exchanges and can be bought and sold throughout the trading day, offering flexibility and ease of access.

Advantages of Actively Managed Mutual Funds

  • Potential for Outperformance: The big draw is that a skilled manager can select stocks, bonds, or other securities that outperform the market, potentially generating greater returns.
  • Flexibility: Managers can adjust the portfolio’s composition based on changing market conditions, economic trends, or new information.
  • Risk Management: Active managers may take steps to reduce risk through diversification, hedging, or avoiding sectors or stocks that seem overpriced or risky.

Angel One Nifty Total Market Index Fund

As the Indian investment landscape evolves, investors are faced with an increasing array of options. Among the most popular investment vehicles in India are Exchange-Traded Funds (ETFs) and actively managed mutual funds. Each offers its own set of advantages, and many investors wonder whether active managers can consistently beat the market.

Recently, Angel One MF launched its new product, the Angel One Nifty Total Market Index Fund, which replicates and tracks the performance of the Nifty Total Market Index—further adding to the growing trend of passive investing.

The investment objective of the Angel One Nifty Total Market Index Fund is to replicate the Nifty Total Market Index to provide returns before expenses that track the total return of the Nifty Total Market Index, subject to Tracking Errors. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.

Conclusion

Investing requires careful consideration of your goals, risk tolerance, and time horizon. Whichever option you choose, it’s essential to stay informed, avoid making emotional decisions, and stick to your long-term plan.

Curious about your SBI SIP returns? Get accurate estimates of your investment growth using our SBI SIP Calculator and stay ahead of your financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

PM Kisan 19th Instalment: How to Check Your Beneficiary Status?

On February 24, 2025, Prime Minister Shri Narendra Modi launched the 19th instalment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme in Bhagalpur, Bihar, bringing good news to millions of farmers across India!

The PM Kisan 19th Instalment will directly benefit over 9.8 crore farmers, including 2.41 crore women farmers, with financial support exceeding ₹22,000 crore. Through Direct Benefit Transfer (DBT), the funds will reach farmers without any middlemen, ensuring a transparent and efficient process.

How to Check Your Beneficiary Status?

  • Visit the Official PM Kisan Website: Go to the PM Kisan portal.
  • Go to Beneficiary Status Page: Click on the ‘Beneficiary Status’ or ‘Know Your Status’ tab.
  • Enter Your Details: Simply use your Aadhaar number or bank account number to check if you’re eligible.

To make things even easier, over 5 lakh Common Service Centres (CSCs) have been onboarded to assist with registrations, and an efficient grievance redressal system is in place. Additionally, since September 2023, the AI-powered chatbot, Kisan-eMitra, has been available on the portal to provide instant support in local languages, helping farmers with queries about payments, registration, and eligibility.

Conclusion

The PM Kisan 19th instalment is a powerful reflection of the government’s unwavering commitment to the welfare of farmers and the growth of India’s agricultural sector. Supporting farmers nationwide also strengthens the government’s dedication to rural development and agricultural prosperity.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mid-Day Top Gainers and Losers on February 25, 2025: M&M and Bharti Airtel Led Gainers

On February 25, 2025, as of 12:03 PM, the BSE Sensex was up 0.20% at 74,601.03, while the Nifty 50 was flat at 22,554.40. The mid-day top gainers and losers for the day are:

Mid-Day Top Gainers 

Symbol Open High Low LTP %chng
M&M 2,740.00 2,803.95 2,728.15 2,799.65 3.34
BHARTIARTL 1,597.00 1,642.50 1,597.00 1,639.05 2.36
BAJFINANCE 8,354.95 8,515.00 8,338.05 8,490.90 1.63
NESTLEIND 2,222.45 2,254.55 2,213.85 2,252.15 1.43
ADANIENT 2,115.15 2,144.00 2,102.00 2,139.20 1.14

M&M

M&M shares opened at ₹2,740.00, hit a high of ₹2,803.95, and saw a day change of +3.34%, closing at ₹2,799.65.

Bharti Airtel

Bharti Airtel shares started at ₹1,597.00, and reached a high of ₹1,642.50, with a day change of +2.36%, closing at ₹1,639.05.

Bajaj Finance

Bajaj Finance shares opened at ₹8,354.95, peaked at ₹8,515.00, and gained +1.63%, ending the day at ₹8,490.90.

Nestle India 

Nestle India shares opened at ₹2,222.45, touching ₹2,254.55, with a day change of +1.43%, closing at ₹2,252.15. 

Adani Enterprises

Adani Enterprises shares started at ₹2,115.15, reached a high of ₹2,144.00, gaining +1.14%, and closed at ₹2,139.20.

Mid-Day Top Losers

Symbol Open High Low LTP %chng
HINDALCO 636 638.45 617.3 619.45 -3.5
DRREDDY 1,167.15 1,169.55 1,135.00 1,138.20 -2.26
SBILIFE 1,480.00 1,484.05 1,463.45 1,466.75 -1.33
TRENT 5,090.00 5,129.25 4,988.00 4,998.90 -1.32
NTPC 320.1 321.5 315.75 316.25 -1.2

Hindalco  

Hindalco shares opened at ₹636.00, and hit a low of ₹617.30, with a day change of -3.50%, closing at ₹619.45.

Dr Reddy

Dr Reddy shares started at ₹1,167.15, touched a low of ₹1,135.00, losing -2.26%, closing at ₹1,138.20.

SBI Life

SBI Life shares opened at ₹1,480.00, and reached a low of ₹1,463.45, with a day change of -1.33%, closing at ₹1,466.75.

Trent

Trent shares opened at ₹5,090.00, hit a low of ₹4,988.00, and saw a loss of -1.32%, closing at ₹4,998.90.

NTPC

NTPC shares started at ₹320.10, and touched a low of ₹315.75, with a day change of -1.20%, closing at ₹316.25.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Garden Reach Shipbuilders Expects Order Book to Cross ₹40,000 Crore by FY26

Garden Reach Shipbuilders Ltd., a state-run shipbuilding company, anticipates its order book will surpass ₹40,000 crore by the end of the 2026 financial year, according to Chairman and Managing Director PR Hari.

In an exclusive interview with CNBC-TV18, Hari stated that the company’s current order book stands at ₹23,877 crore, which he described as “reasonably healthy.” He added that they aim to maintain a Compound Annual Growth Rate (CAGR) of 25% moving forward.

“We have been maintaining a 25% CAGR. Our current order book is reasonably healthy, and I had previously indicated that the order book will be substantial by the end of FY26. Therefore, we expect to maintain a similar CAGR,” he said.

New Contracts Expected

Hari also mentioned that Garden Reach expects to sign two additional contracts in the current financial year, with 95% of the current order book coming from the shipbuilding sector.

“The orders we currently have are at a stage where revenue recognition is progressing well. Additionally, the new orders we are expecting will start generating revenue from FY27 or FY28,” he explained.

For the December quarter, Garden Reach reported a 34% year-on-year growth in revenue. Its Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 55%, and its margins improved by 60 basis points compared to the previous year.

Anticipation for Strong Performance

“We expect to maintain similar margins (around 8%). This is because, while shipbuilding is a highly competitive sector with generally low margins, we have shifted towards the export of commercial ships and ship repairs, which offer relatively higher margins. As a result, I believe we will be able to sustain profit margins above 8% in the coming years,” the CMD added.

The company also expressed confidence in a strong performance for the March quarter, with expectations of more orders to further strengthen its order book.

Currently, exports account for 4.5% of Garden Reach’s total revenue, and the management aims to increase this figure to 10% over time.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.