Garden Reach Shipbuilders & Engineers Ltd

NSE:GRSE

Earnings Call Transcript 2024-Q1

[Operator]

Good afternoon, ladies and gentlemen. I'm Michele, moderator for this conference. Welcome to the Conference Call of Garden Reach Shipbuilders & Engineers Limited, arranged by Concept Investor Relations to discuss its Q1 FY 2024.We have with us today, Commodore P.R. Hari, Indian Navy Retired, Chairman and Managing Director; and Shri R.K. Dash, Director, Finance and CFO. [Operator Instructions] Please note this conference is being recorded.I would now like to hand the floor to Commodore P.R. Hari, Chairman and Managing Director. Thank you. And over to you, sir.

[P. Hari, executive]

Thank you, Michele. Ladies and gentlemen, a very good afternoon to each one of you. I'm Commodore P.R. Hari, Chairman and Managing Director, GRSE; and with me, I have here Shri R.K. Dash, Director-Finance and the Chief Finance Officer; and Shri Sandeep Mahapatra, the Company Secretary.At the outset, we thank each one of you for taking time out to attend our earnings call to discuss Q1 FY '24 results. FY '24 has started on a very vibrant note for GRSE, with the shipyard recording the best ever quarterly results in the history of the company. Before I elaborate on the financial results, I shall touch upon a few of the highlights of our physical performance during the quarter.We have delivered as far as deliveries -- ship deliveries are concerned, we have delivered 1 vessel, a passenger cum cargo ferry to the Cooperative Republic of Guyana, and the formal delivery was held on 23rd of April 2023. As far as the project milestones go, we launched three warships during the quarter. Of that two ships being launched on a single day that is 13th of June 2023. The third, anti-submarine shallow water craft, and the fourth, survey vessel large.I'm also happy to inform you that we concluded a contract with the Indian Navy for tenant number 30 mm Naval-standard gun with an order value of approximately INR 250 crores. We have also launched an all India start-up challenge competition Games 2023, GRSE accelerated innovation nurturing team, basically to tap the start-up ecosystem of the nation to enhance the efficiency of the shipyard in new technology adaption. This was done on 22nd May, 2023.Again, happy to inform you that we have launched an underwater autonomous vessel. This was done by the Chairman DRDO Defense Research and Development Organization and Secretary R&D during the last month. We have also signed a memorandum of understanding the Kongsberg, Finland for localization of water [Technical Difficulty] for the ships being constructed by GRSE and the other shipyard for the Navy and the Coast Guard.Arguably, the most important event in the history of the shipyard, the launch of a major warship by the honorable President of India was held as late, has recently has 17th of August 2023. On this day, the third P17 Alpha, Dunagiri was launched. As far as our order book position grows as on 30th of June 2023, our order book stands at a healthy INR 24,546 crores. This comparison of six projects, including four projects for the Indian Navy. These four projects comprised of 19 warships, 3 P17 Alpha, 10 Frigate, 8 anti-submarine shallow water crafts, 4 next-generation ocean going patrol vessels, and 4 survey vessels large.In addition, as I stated during the last conference call too, that we are constructing an electric ferry for the government of Bangladesh and Fast Patrol Vessel project for the government of West Bengal. As on date, the order book value for the P17 Alpha project, which forms a major chunk of our order book is INR 13,745 crores with the 8 new shallow water craft project comprising of 8 ships contributing to INR 5,438 crores, and the next-generation ocean going patrol vessels [ INR 3,400 ] crores-odd, and the survey vessel around INR 1,300 crores.Our Ship Repair segment has also taken off in a very positive manner, and they have concluded two resets of coast guard ships during the quarter, the Q1 of FY '24. As far as the execution plan for ongoing projects go. Based on our strategy and the current project programs, the P17 Alpha ships are expected to be delivered from mid-2025 to mid-2026. Whereas August 2025, the first ship is planned to be delivered and the third ship is planned to be delivered during August 2026.As far as the survey vessel large project is concerned, that's the first ship projects. The first ship is currently undergoing the contractor sea trial, that means, it is reaching a project maturity level, wherein the ship is being ready for trial and delivery. We intend delivering this ship by the end of this calendar year and the second ship during early 2024. The third and the fourth ships are expected to be delivered during FY '25.As regards to a-submarine shallow water craft project is concerned, of the 8 ships, 3 have already been launched, and we intend launching 1 more vessel during the current calendar year, and 2 more vessels during the first quarter -- last quarter of the current financial year, that is early 2024. We ended delivering one of these ships, the first a-submarine shallow water craft during the current financial year, expected to be delivered between February and March 2024.As for the progress of this entire project is concerned, we intend to complete this project by FY '27. The next-generation electric ferry project is going on smoothly and the vessel is planned to be delivered during the current calendar year, perhaps towards the end of the current calendar year. So the project, the next-generation ocean going patrol vessel, the contract we have signed on 30th of April this year, we have started off on a positive note, and the intent starting production during the current quarter. The 30 mm Naval-standard gun project is also going on fine, and we intend completing this project during FY '24, '25.This in a nutshell gives you an overview of our typical performance, our order book position, and the execution plan of the current order book. Coming to our financial performance. As I stated, Q1 results have been the best in the history of the company with both the revenue from operations and the profit after tax touching new highs. Year-on-year, the revenue from operations have gone up by 30% from INR 579 crores to INR 756 crores. And our total income from INR 620 crores to INR 826 crores that is a rise of 33%.EBITDA of 57% rise resulting in a value of INR 116 crores and the profit after tax going up by 54% from INR 50.18 crores to INR 76.68 crores. Our margins during the quarter have also been encouraging, and the earnings per share has gone up from INR 4.38 to INR 6.69. From the investor perspective, the market capitalization has gone up from [ INR 2,568 ] crores as on 31st March, 2023 to INR 6,590 crores. So on the whole, both the typical performance and the results of the typical performance, whereas the financial performance had been good during Q1.With that, I end my introductory address. Now I'm open for any questions that you have.

[Operator]

[Operator Instructions] We'll take the first question from the line of Rohit Natarajan from Antique Stockbroking.

[Rohit Natarajan, analyst]

Sir, if you could help us on P17 Alpha, what is the physical progress for individual vessels? How is this expected to see the execution trajectory over the next 2 to 3 years? Thank you, Mr. Natarajan. P17 Alpha, as I had mentioned is our main project, that is our main revenue earner. And as on [ 20th ] of June, plus -- as I mentioned, plus 13,700 -- approximately INR 13,700 crores order book value was remaining. As far as the physical progress is concerned, the first ship that is the ship which was launched last year, now crossed 55% of physical progress, that is as on 30th of June, and currently, we are almost a 58% physical progress.With the second ship at around 47% and the third ship which was at 32% as on 30th of June has now been launched, as I stated, on 17th of August with approximately 37%-plus of physical progress. Now all these ships are in advanced stage of construction and now we'll move on to the outfitting phase where the equipment that have been lowered will be installed and bottomed-up and over the next 2 to 3 years, that is from now we are in 2023, the first ship is expected to be delivered in 2025 mid, and the second ship early 2026, and the third ship during mid of 2026. We are targeting August, September 2026. So this in a nutshell gives you an overview of the P17 Alpha project. Sure. Sir, on the anti-submarine shallow water craft, can you help us understand how is the execution -- revenue execution expected this year and next year? Also on NGOPV, what will be the numbers looking like?

[P. Hari, executive]

Okay. As far as the a-submarine shallow water craft project is concerned, now this project comprises of 8 vessels. And as I've mentioned, 3 of these vessels have already been launched. And as on 30th of June, we have around INR 5,400 crores-plus order book value remaining. Now we intend to delivering the first of this ship, the first class in the current financial year and 2 of new ships during the next financial year, and intend completing this project by FY '27. That is between 2023 and '27, all the 8 ships will be delivered.Now the ships which have been launched, the 3 ship which have been launched are currently undergoing the outfitting stage. And this is when the equipment gets lower and so will the revenue increase. So if you want a ballpark assessment of the revenue accrual, this INR 5,400 crores-odd will be exhausted in the next 4 years with 2025 being the peak year from this particular project.

[Rohit Natarajan, analyst]

Got it, sir. But when I look at the quarter-on-quarter also some improvement, it has not really moved as such because last quarter we had INR 5,500 crores, which is down only to INR 5,400 crores. So it's not a 1.5% per month kind of linear projections that we should build in.

[P. Hari, executive]

Absolutely. It's a very interesting question. It doesn't work in a shipbuilding, which I've tried to explaining, but shipbuilding, the revenue accrual is not linear, it doesn't follow a linear pattern. It depends upon what stage of construction the ship is. The maximum revenue accrual is when a ship cross 40% and then moves up to 60%, the equipment gets lower. Now we are in a stage where the pre-ships which have been launched already, they have started giving revenue.So this -- you're absolutely right, when we have gone down from around INR 5,500 crores to INR 5,400 crores, which means we would have just in the last quarter taken just about INR 100 crores from this project. This figure is likely to remain the same even in the next quarter. But in the third and fourth quarters, you'll see a sharp price in this, when the next few ships come to this level of maturity.So to answer your question, in shipbuilding, the revenue accrual does not form a linear pattern, it purely depends upon the price and the phase in which the ship is under construction. Now this is a 8 ship project, in this, 3 ships launched, 2 ships are approaching the launch stage. So in the next quarter also I think similar process from this particular project. But next, next quarter and the next quarter, you'll see a heightened revenue accrual.

[Rohit Natarajan, analyst]

Got it, sir. From a capacity standpoint, the yard utilization. I see that you are engaging even with subcontractors like L&T to outsource some work. Is it because you are already the hands are full, you may not really want to chase new orders, you want to complete the existing order backlog, which puts a question to what beyond the current capacity you want to expand? Can you touch on those strategic aspects, that will be really helpful.

[P. Hari, executive]

Yes. As far as -- thank you. It is an interesting question. As far as the capacity is concerned, now there are 2 -- I'd like to put it in this fashion. There is a pre-launch phase that means before the ship is launched onto water, you need dry docks and slipways to undertake the work where, once they're occupied, you will be able to -- I mean, your building capacity is limited to the number of dry docks and slipways you have. Then comes to phase after the ship is launched, that the ship is tied alongside both from Jetlift as we call, where the outfitting happen.Now in case of dry docks and slipways, we have adequate capacity. Actually, we have spare capacity. In case of both, again, there is no shortage. Plus, we have taken -- I'm purely speaking about the facilities available in Kolkata, we have taken over 3 docks, which primarily at this venture, we are using for ship repair. But these are also captive dry docks with us, which can be used for shipbuilding also in case should a situation from -- where the order book exceeds our capacity when it reaches our capacity.In addition, we have taken over a facility from the federal in the Central Inland Water Transport Corporation, that's called Raja Bagan Dockyard, where over the years, depending upon our needs, we have to rewrite -- this is a different facility. Now we are transforming those full fledge ship building facility, and we have to revitalize the dialogues from shipyards.Now coming to utilization of the capacity of other shipyards for subcontractors, that is purely a business strategy, that is to facilitate concurrent construction. The very fact that geography has been able to launch 3 anti-submarine shallow water craft and all the 4 survey vessels is a testimony to the fact that we are effectively utilizing the spare capacity of other shipyards or other partner yards than the subcontractor facilitate concurrent construction.If -- the order book and pipeline for both the Navy and the Coast Guard is well-known. So should any more orders come, they have adequate capacity and fair capacity to take on this orders. And they have a very general statement, but should meet me there, I can elaborate further.

[Operator]

We'll take the next question from the line of Dipen Vakil from InCred Equities.

[Dipen Vakil, analyst]

Congratulations on a great set of quarter. Sir, my first question is in the line of the current market scenario. Sir, can you throw some light on the current market scenario in terms of new order pipeline and opportunities going ahead?

[P. Hari, executive]

Thank you, Mr. Vakil. Yes, I would say thank you. We had a very good Q1, and we've been maintaining the tempo in the coming quarters also. Now as far as orders on the anvil, currently, there are 2 projects of Coast Guard for which we have submitted our bids against their RFPs. This -- one of them is the 14 fast patrol vessel project, which I had mentioned during the last earnings call that we were eagerly waiting for this.Now we have submitted the bid, the technical evaluation process is done. And we expect the bid to be open sometime in the current quarter. This would approximately be around INR 1,200 crores to INR 1,400 crores, that's an assessment. And in addition, there is another project again for the Indian Coast Guard again around INR 2,000 crores-odd for a 6 ocean going patrol vessel for example.In addition, also the technical evaluation has been completed. Our polar research vessel for NCPOR, that is a [ DIME ] organization. Out of that you could be to the tune of INR 750 crores to INR 900 crores. So these are the three projects where we expect the -- which should be opened during the current quarter, there are what is immediately in the plate.What is likely to come up thereafter. Navy is likely to come up with an RFP for 2 multi-focus vessels. Approximate order value could -- to a tune from INR 1,500 crores, with the RFPs expected during the current calendar year, plus 5 next-generation survey vessels follow-on survey vessel with an order value of around INR 3,500 crores, plus 21 water jet with FAC for the Indian Navy, approximately INR 2,500 crores order value. This RFI has already been published, and they expect the RFP to come out during calendar year '24.Along with the next-generation corvette, which we are eagerly waiting for 8 next-generation corvette, for which AoN was accorded in May 2022. We expect the RFP to come out in 2024 calendar year towards end. So this in a nutshell gives you an overview as to what is in the pipeline in the immediate year that is current year and the next calendar year. I would not go beyond that, because there are many more projects, both as Navy and the Coast Guard which are on the anvil, including the next-generation destroyer and the [ MSME ] project surprisingly news came out last week that maybe it will be going in for the MSME project on a competitive basis. So this gives you a reasonable picture on what is in store for GRSE and other shipyards.

[Dipen Vakil, analyst]

Got it, sir. Sir, and my second question is in the line of -- sir, you mentioned that you have delivered an underwater unmanned vehicle this quarter. So is it a concrete order or it was more like a user trial? Can you give some light on that? So do we have more orders on that?

[P. Hari, executive]

See, yes, it is a technology demonstrator. It was not against a firm order. This is a technology demonstrator that we proved successfully within collaboration with an MSME, that suppressively it's an -- MSME is our partner in this project. It's an unmanned autonomous vehicle. And this is actually true and just got the capability of multiple types of payload and has been proven to a depth of 300 meters.Now the Navy has -- was recently stated, none of their interactions that maybe is going in for an unmanned -- they've got an unmanned road map that they're looking for platforms capable of operating in subsurface vessel and areal domains. In keeping with this requirement that is coming up with the Navy, and of course, we are confident that Coast Guard will follow suit. We have gone aggressive and we do not want to lose the first movers advantage. And therefore, we are moving again in all three domains. U.S. mentioned about this underwater autonomous vessel. That definitely would address with more fine-tuning and user trials underwater autonomous requirements of the customer that is Navy.We are also moving in towards autonomy in the surface and aerial domains also. That is aerial as in drones capable of our marine platform operations and unmanned surface vessels. This would be future vertical that would have huge potential with Navy and Coast Guard. Thank you.

[Operator]

We'll take the next question from the line of Swechha Jain from ANS Wealth.

[Swechha Jain, analyst]

Sir, if you could help us giving us some sense on the revenue target for FY '24 and FY '25?

[P. Hari, executive]

I'm parroting what I -- thank you. I'm just parroting what I have mentioned consistently over the last four con calls I have in [Technical Difficulty] that we have an order book of as I mentioned INR 24,546 crores as on 30th of June '23. As per our build strategy and the current project execution program. These -- this entire order book is expected to be completed by FY '27.And -- okay, I'll give you just a background. FY '22, we had a revenue from operations of around INR 1,785 crores -- INR 1,786 crores. FY '23, we had INR 2,561 crores. So we are moving up, and we have seen our Q1 results, we already patched INR 756 crores. So I reiterate what I stated earlier that FY '24, '25 and '26 are going to be our peak financial year, considering our order book position and the project maturity status. I know the answer is a bit roundabout, but I hope it meets your query.

[Swechha Jain, analyst]

Yes. No worries, sir. Sir, I also have a follow-up, like you were in the earlier participant's question you were giving the order pipeline, then the bid pipeline. So I just wanted to understand, you were talking about 3 projects that we are expecting in this financial year. So have you already submitted the bid or the RFP is still to be out is what I kind of missed that?

[P. Hari, executive]

Ma'am all the 3 RFPs have been -- are out, and we have submitted the bid for all 3 projects. 2 of the projects were put in -- sorry, the fixed ocean going patrol vessel and that first vessel for DRDO, the technical negotiations already been completed, and the bid opening is expected sometime during the current quarter. As far as the 14 FPV project is concerned, again, the bid has been submitted. In our acquisition, the bid for the price would be opened in the next 2 to 3 months. So all 3, yes, bid is submitted. The balance, what I have mentioned is where we are expecting the RFPs to come out.

[Swechha Jain, analyst]

Understood. And sir, what would be the order value for 8 next-generation corvette?

[P. Hari, executive]

See ma'am, the AoN has been accorded by the Defense Acquisition Council in May 2022 for INR 32,000 crores. So that is the order value -- expected order value.

[Swechha Jain, analyst]

Okay. And sir, you had also said that you're also expecting an RFP for maybe for INR 2,500 crores. So what was that? I kind of missed that answer, sorry.

[P. Hari, executive]

See maybe it's coming up with project for which RFI is already out, which is for the next-generation water jet FACs. That is water jet fast attack crafts, 21 of them. And these are small vessels, which is actually some of our niche products, they have been delivered plus 30 has petrol vessels for the water jet FACs. So we have adequate experience, and here for this water jet -- next-generation water jet FACs, the order value is likely to be between [ INR 2,200 crores to INR 2,600 crores. ] So that's why I stated at a figure of INR 2,500 crores.

[Operator]

We'll take the next question from the line of Venkatesh Subramanian from LogicTree.

[Venkatesh Subramanian, analyst]

Sir, actually, my question has been answered just from the previous one. All the best.

[Operator]

We'll take the next question from the line of Kunal Mehta from Equirus Wealth.

[Kunal Mehta, analyst]

Sir, can you just dwell a bit on the ship repair segment?

[P. Hari, executive]

Thank you, Mr. Mehta. Ship repair still in maven stages. We have -- the positive point is that we have 100% occupancy of the 3 dry docks that we have taken over from Kolkata Port Trust. But currently, ship repair contributes around just about I would say, around 1.5% of our overall revenue. Order book, we have currently about INR 70 crores to INR 80 crores of order book from ship repair. As I mentioned, we are starting in a modest fashion. But the opportunity here is phenomenal. Since most of the Coast Guards refits in this region are being undertaken by us. We already made a foothold in this. What we are looking for is to stabilize here and enhance our revenue at least by 4x in the next 3 to 4 years.

[Operator]

We'll take the next question from the line of Harshit Kapadia from Elara Capital.

[Harshit Kapadia, analyst]

Congratulations for a good set of results. Can you give us an order book breakup in terms of P17 Alpha survey vessel and ASW corvette? That would be helpful. That will be the first question.

[P. Hari, executive]

I will -- thank you, Mr. Harshit. As far as the order value remaining, I will cover that. Is that what you intend, and I'll cover that. For P17 Alpha, we currently have an order -- order value of INR 13,745 crores remaining out of the INR 19,293 crores. Anti-submarine shallow water craft, we have INR 5,438 crores remaining for execution, and the survey vessel large project, we have INR 1,382 crores. This is the order book value that is remaining for execution.

[Harshit Kapadia, analyst]

Okay. And on the next-generation corvette, the AoN was supposed to be INR 36,000 crores. I think you mentioned INR 32,000 crores. Is there a reason in the AoN?

[P. Hari, executive]

Yes. You are absolutely right. This is a typo which I had -- it's in my handwriting. Yes, it is INR 36,000 crores. Correct. You're absolutely right. The AoN was accorded for INR 36,000 crores for 8 vessels, 8 ships.

[Harshit Kapadia, analyst]

And L1 will get 5 and L2 will get 3. Is that the same thing? Or there is no change in that format, right?

[P. Hari, executive]

No change. As per the -- maybe requirements, which they have indicated, the L1 will get 5 ships, the L2 getting 3 ships.

[Harshit Kapadia, analyst]

And lastly, just probably I have missed it, the RFP document, which you're supposed to submit, has it been submitted or when it is likely to be submitted and when the tenders are expected to be opened?

[P. Hari, executive]

You're talking about the next-generation corvette, right?

[Harshit Kapadia, analyst]

Yes, sir, next-generation corvette.

[P. Hari, executive]

See maybe it's in the process of formalizing the statement of technical requirements under RFP documentation, we expect the RFP to come out during the latter half of 2024, which means almost 1 year from 9 months to 10 months to 11 months from now. The latter half of 2024 only the RFP will come out.

[Harshit Kapadia, analyst]

Okay. That was really helpful, sir. And I also wanted to check, probably if somebody had asked this, but I missed it. But lending platform docks, what's the status on that particular order, 4 numbers of LPDs were there. And I think GRSE was looking to participate in this new platform for them. So any update on that? And would GRSE still remain to be a vital player in this segment? Or since you are adding new product in your categories on the UAV side, the unmanned vehicle side, do you think you will have a lesser attention to this category?

[P. Hari, executive]

I'd like to clarify that as a defense shipyard, our focus was and will be -- primary focus will be on a domestic warship building. That is the purpose for which the government has set us up. But at the same time, that they remain competitive and also to gain first movers advantage in segments like autonomous vessels or green energy platforms, we will be diversifying in this area, but without compromising on our core competency, which has been built over the last [ 2 ] years on warship building.So what I'm trying to convey is that, our warship building focus will not get diverted, no. As far as the landing ship -- landing platform dock, LPD are concerned, yes, maybe in their perspective plan as we are aware, maybe has the requirement of landing platform dock. At this moment, we do not have a clarity as to when the RFP will come out. Yes, they have a requirement. The clarity is not there as of now, as to when the RFP will come out. And when it comes out definitely the RFP would be a participant in the bidding process. Understood, sir. And I know, sir, you have repeated time and again on the margin front that you would want to achieve a 10% PAT margin. But just wanted to check with you, as your turnover now is going to be at its peak in the next 3 years, as you have also highlighted, do we expect EBITDA margin, excluding other income, should also move to a double-digit margin level or it would not be fair to assume that? See, I'll again like to put it in our perspective. As far as the income is concerned, the so-called other income is also an integral part of what translates into our profit. As far as the margins are concerned, be it EBITDA margin or be it the PAT margin, we in the shipbuilding industry have a -- for a conventional successful industry, the PAT margins are anything beyond 7.5% to 8%, and as evident from our performance during the current quarter, we have been able to post margins beyond that. So we, based on our current order book and also fully understanding that the revenue will peak during the next 2 to 3 years, based on our order book, we are confident of maintaining similar margins in future also. From the investor perspective, we will be maintaining similar margins in future also.

[Operator]

We'll take the next question from the line of Parimal Mithani from Credential Investments.

[Parimal Mithani, analyst]

Congratulations for a good set of numbers. Sir, I just wanted to know if -- there are 4 central defense shipyards. How do you differentiate yourselves in terms of [indiscernible] industry right now for you? Can you highlight how...

[P. Hari, executive]

Mr. Parimal, could you come again from the beginning, what is the question? Could you please repeat?

[Operator]

I'm sorry to interrupt. Mr. Mithani, I would request you to use your handset, please.

[Parimal Mithani, analyst]

Okay. Can you hear me, sir? Now, is it clear?

[P. Hari, executive]

Loud and clear.

[Parimal Mithani, analyst]

Yes. Sir, since there are 4 different shipyards in the country in the central PSU side, how do you differentiate yourselves in terms of ship repair? There is Cochin Shipyard. There is Mazagon Dock. And what is the way that we are trying to go ahead? Because all of them have ship repair as a part of their strategy going forward. How do you foresee yourselves in the future for that?

[P. Hari, executive]

Yes, there are 5 of us, plus Larsen & Toubro's shipyard also, [ Vizag shipyard ], in the fray for ship repairs, in addition to shipbuilding. I have stated this before that GRSE was -- I repeat, was not focusing much on ship repairs because we had adequate orders in terms of shipbuilding and other business verticals that we have [indiscernible] diesel engines and so on. But we decided that this is an area where opportunities are [ at its ] galore. So we decided as a corporate strategy that we will focus on ship repairs. Towards that, steps have already been taken. We created a dedicated ship repair division in the company and also taken over 3 dry docks from the Kolkata Port Trust.Now, both our counterparts in this shipbuilding -- our counterpart shipyards, what you mentioned before, the 3 more PSUs, plus Cochin Shipyard and the L&T, they have vast experience in ship repairs, established ship repair facilities and the vendor base. Our advantage is that we have taken on the -- taken over these docks, which is a completely segregated facility with dry docks ranging from 90 meters to 120 meters and which is away from our shipbuilding facility, but -- and yet located in Kolkata. So advantage is that we can use our vendor base and the OEM base as required to carry out ship repairs. We have stated in a modest fashion, experimented successfully with the conduct of Coast Guard refits. What I have stated before also, we -- our target -- our internal target is to quadruple our revenue from the ship repair segment over the next 3 to 4 years.So we are starting in a modest fashion, stabilized ourselves. Now, we are looking aggressively for more orders in this segment. But the other shipyards you mentioned are definitely more experienced in carrying our ship repairs. That perhaps in -- at least in a couple of cases, that was their major source of income because for them, at that point of time, shipbuilding orders were far and few.

[Operator]

We'll take the next question from the line of Amit Dixit from ICICI Securities.

[Amit Dixit, analyst]

Congratulations for a good set of numbers. I have a couple of questions. Since I joined the call late, so I mean, this might be a repeat of what you have already answered, so please bear with me. The first one is that there was a news that we have outsourced a portion of ASW-SWC and a Survey Vessel (Large) order to L&T. I just wanted to understand the key driver behind it. Was it to forge a public-private partnership? Or was it capacity constraints on our part at this point in time to execute the order?

[P. Hari, executive]

As you rightly said, I had answered this question. I'll elaborate a little more. Both the projects -- yes, part construction of a few of the ships of the Survey Vessel (Large) and the Anti-Submarine Shallow Water Craft project have been outsourced to one of our partners. And this got a 2-pronged approach. One, we wanted to utilize the spare capacity of capable shipyards in India to facilitate concurrent construction. And it is not only for these 2 projects, as a business strategy, we have also within -- of course, shipyard that you mentioned is not based at Kolkata. It is in the East Coast. We have also outsourced part construction of 2 more projects to a minor shipyard in Kolkata and successfully completed both projects. The advantage is that we can leverage the spare capacity of these shipyards and then facilitate concurrent construction so that the large projects that we undertake within the shipyard go concurrently and smoothly along with these partnered facilities. And yes, this also is in line with the government's policy of encouraging public-private partnerships. [indiscernible. But it is not -- I repeat, on account, no, it is not because of any sort of capacity constraints.

[Amit Dixit, analyst]

That's helpful, sir. The second question is that if you look at the quarter, there was a very impressive growth in revenue and EBITDA or whatever parameter you consider from a YoY perspective. Just wanted to understand what was driven -- what was driving it. If you can just drill down the execution part of your order within frigates and Survey Vessel (Large) and all? If you can just let us know the execution, how much did you execute in this quarter of each of these items, that would be very helpful.

[P. Hari, executive]

Thank you. Yes, again, Q1, whichever financial parameters that we take, starting from revenue from operations to EBITDA or profit after tax, the results have been very encouraging, and it is on 2 accounts. One, the projects -- all 3 projects that you mentioned, that is the P-17 Alpha, the Survey Vessel (Large) and the Anti-Submarine Shallow Water Craft, all 3 projects have reached or are reaching a level of project maturity wherein the equipment get pumped into the ships where they are integrated, and this gives us revenue. Now, in a conventional shipbuilding project, if you take nearly 60% to 65%, depending upon the type of ship, the value comes from the equipment. And these equipment get lowered onto the when the ship goes between -- again depending upon the class of ship, from 40% to 60% of construction, and we are currently in that phase. So in FY '23, now '24, '25 and to an extent in '26, our revenue is likely to be on an upward trajectory. Q1 is an indicator -- Q1 FY '24 is an indicator of what stage of project maturity that we're in and what is on the anvil in the coming quarters and financial year.

[Amit Dixit, analyst]

Okay. And last one from my side, there has been a news from Russia, we were supposed to get 2 frigates. Of course, 2 of them are under construction at Goa Shipyard currently, but 2 of them are getting delayed. Now, because of obviously the payment crisis and all sorts of things, and we don't know how much time it will take for Russia-Ukraine crisis to get resolved, do you believe that the government can issue -- can ask the domestic shipyards like yours to shoulder a part of that order, the frigate order, at least 2 numbers of that class?

[P. Hari, executive]

See, you're right. Two the these -- there are 4 figures being built. Two of them are being built in the Indian shipyards and 2 of them are being built at [indiscernible] Russia. And for your information, these are the only 2 ships -- out of the 63 ships and submarines that are being built for the nation, 61 are being built in India and 2 -- those 2 frigates that you mentioned are being built abroad. Now, our appreciation -- this is purely GRSE's appreciation that these 2 ships have already reached a stage wherein duplication by building elsewhere would fetch any better results. The government is fully [indiscernible] of the situation, and I'm very confident that they're doing the needful to get both these frigates completed ASAP.

[Operator]

We'll take the next question from the line of Venkatesh Subramanian from LogicTree.

[Venkatesh Subramanian, analyst]

Yes, sir. Sir, I wanted to get an idea of the kind of market opportunity, the total addressable opportunity that is available for all the shipyards over the next 3 to 5 years. And what is the targeted opportunity for GRSE? For example, you might have an internal blueprint based on the total market [indiscernible] over the next 5 years. Do you have some sort of a vision that GRSE should be at this particular level by 2028 or 2030? If you could just give us a broad vision, that will be good for us to kind of plan for the long term, sir.

[P. Hari, executive]

Interesting question; a leading question actually. [indiscernible] now see, both the Navy and the Coast Guard, and it is evident, it is open those information that both the Navy and the Coast Guard are on a fleet [ expansion ride ]. And fleet expansion means naturally induction of new platforms, that is the ships and the submarines. Now, this is something which I have stated in many a fora that there are 4 different shipyards. There is the Cochin Shipyard. There are the PSU shipyards, the Larsen & Toubro shipyard. A couple of shipyards on the West Coast. These are the players who are in the phase of getting these orders. I'll give you a glimpse of the projects, major projects that are either -- for which the RFPs have been out or what are on the anvil as per our appreciation. As far as the Indian Cost Guard is concerned, 2 of the projects -- there's a 14 FPV project and a 6 OPV project. Total order value should be in the tune of INR 3,000 crores to INR 3,500 crores between both these projects put together. The technical negotiations are in progress, and the [indiscernible] is expected to be opened in some -- next month to the next 2, 3 months. Plus, there is a polar -- the DRDO -- there is a project for a research vessel, approximately INR 750 crores to INR 800 crores, INR 900 crores, depending who wins the bid. That again, the price [indiscernible] is expected to be opened. These are the 3 projects [indiscernible] have been submitted by the Indian [indiscernible].Now, coming to the projects on the anvil, the eighth and next-generation corvettes [indiscernible] by the DAC, INR 36,000 crores, 21 waterjet FACs for the Indian Navy, approximately INR 2,500 crores; RFP expected to be out in 2024, to multipurpose vessels and 5 next-generation [indiscernible] vessels. Both put together to be in the tune of around INR 5,000 crores, both the projects put together. RFP should be towards the end of the calendar year or early next year; 120 fast interceptor craft for the Indian Navy, approximately INR 1,500 crores RFP likely '24; 4 LPD. It may come -- order value is high INR 2,500 crores to INR 30,000 crores. When it is going to [indiscernible] there is no quality, there is no clarity. Each next-generation destroyer, the other value could be plus INR 1 lakh crore. The RFP come out in the next 4 to 5 years. 12 mine countermeasure vessels for the Indian Navy, INR 32,000 crores. I think I have [indiscernible]. This is a glimpse of what is going to come in the next 2 years.Now, as I mentioned, we GRSE have a very, very clear internal strategy as to which are the projects that we should aggressively bid, where our experience and expertise will fetch us [indiscernible] about the Navy project that is likely to come. Similarly, Costa Guard has also got a global with next-generation fast petrol vessel, OPVs and so on. So there is adequate in the future, for all the Indian shippers and with the government policy focusing on total make in India, so we expect at least 95% to 97%, whatever, close to 100% orders going to the Indian shipyards.

[Venkatesh Subramanian, analyst]

[ I understand, sir ]. So, my understanding is, looking at the size of the opportunity over the next 5 years, even if our current order book gets exhausted by FY '27, there is enough visibility and prospects for us to have a repeat or better performance, say, from FY '27 to [ FY '22 ] over the next cycle, I'm asking. Would that be the right assumption?

[P. Hari, executive]

Absolutely, you're right. And just to give you an example, as our order book was getting executed and getting depleted, we got an order for the next-generation oceangoing petrol vessels, as late as 30th of March this year. We also have a totally different non-shipbuilding segment, the 30 mm Naval standard gun, but the value is [ not much is just about 250 ] but an opening for us. We are also going for low-value but large-volume autonomous platforms, which is going to be the future. We're also diversifying into green and that's green energy vessels. So in a nutshell, as the order book gets executed, considering the opportunities available, one, in the domestic warship building scenario; second, export opportunities; third, ship repair; fourth, our diversified products that is autonomous and green energy products are [indiscernible] segment which often does not get discussed. All put together, there is [indiscernible] potential on the anvil for GRSE to maintain a healthy order book and accordingly, good revenues.

[Operator]

Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Cmde. P.R. Hari, Indian Navy Retired, Chairman and Managing Director, for closing comments. Over to you, sir.

[P. Hari, executive]

Thank you, Michelle. Thank you, ladies and gentlemen. I hope I have been able to answer most of your queries. There have been a couple of occasions where I have given a roundabout answer, but that's [indiscernible]. But hopefully, I've clarified all the queries that you had both on our financial performance as of now and the future outlook. We have a healthy order book, and I repeat, very, very clear execution strategy. And our intent is towards new technology adoption: one, to improve our efficiency; and second, to diversify into verticals, specifically technology-based verticals, that is the green and autonomous energy platforms. And we are very confident that our performance, both physical and of course financial performance, will continue to be good as what we have demonstrated during Q1. Thank you. And I also thank Gaurav from Concept IR for steering the entire event. Thank you. Thank you, ladies and gentlemen.

[Operator]

Thank you very much, members of the management. Ladies and gentlemen, on behalf of Garden Reach Shipbuilders & Engineers Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.