Garden Reach Shipbuilders & Engineers Limited (GRSE) Earnings Call Transcript & Summary

Ladies and gentlemen, good afternoon and welcome to the conference call of Garden Reach Shipbuilders & Engineers Limited, arranged by Concept Investor Relations to discuss its Q1 FY '27 results. We have with us today management representatives: Cmde PR Hari, IN (Retd.), Chairman & Managing Director; Shri Niranjan Mukund Bhalerao, Director (Finance) & CFO; Smt. Aparajita Ghosh, GM (Finance); and Shri Sandeep Mahapatra, Company Secretary & Compliance Officer.[Operator Instructions]. I would now like to hand over the floor to Cmde PR Hari, Chairman & Managing Director. Thank you, and over to you, sir.

Thank you. Good afternoon, ladies and gentlemen, and a warm welcome to each one of you to the conference call of Garden Reach Shipbuilders & Engineers Limited to discuss the results for the quarter ended June 30, 2026. With me here are Shri Niranjan Bhalerao, Director (Finance) & Chief Financial Officer; Smt. Aparajita Ghosh, Chief General Manager (Finance); and Shri Sandeep Mahapatra, Company Secretary & Compliance Officer. During the next 15 to 20 minutes, I shall brief you on our financial and physical performance and also touch upon our current order book, the status of the ongoing projects and the execution plan, a glimpse of our future outlook, and the expansion plans for the company. Q1 FY '27 has again been an interesting quarter, and we have recorded a strong set of numbers. Our total income stood at INR 1,914 crores, recording a year-on-year growth of 38% when compared to Q1 FY '26 results, and the revenue from operations has increased from INR 1,310 crores to INR 1,815 crores, recording a growth of 39%. The profit after tax has moved up by 44% from INR 120 crores to INR 173 crores during this period, and the earnings per share has increased by 44% from INR 10.49 to INR 15.09.Now coming to the operational highlights: One of the defining milestones for GRSE during the year was being accorded the Navratna status by the Government of India, Department of Public Enterprises. This was accorded to us on June 19, 2026, and this prestigious recognition marks a significant milestone in the company's journey and reflects its constant and consistent financial and operational excellence over the years. Conferment of Navratna status comes at a pivotal time as the shipyard is actively pursuing an ambitious expansion plan. The company is undertaking both brownfield and greenfield capacity expansion initiatives to strengthen our shipbuilding capabilities, support future growth, and enhance our ability to execute larger and more complex projects. GRSE-built 3 ships: INS Dunagiri, that is the second P17 Alpha Stealth frigate; INS Sanshodhak, the last of the four Survey Vessels (Large); and INS Agray, the fourth ship of the 8-ship Anti-Submarine Shallow Water Craft project were commissioned into the Navy by the Honorable Prime Minister of India, Shri Narendra Modi, at Kolkata on June 21, 2026. GRSE has also received a notification of award for two projects: one from the Oil and Natural Gas Corporation (ONGC) for construction of 4 Platform Support Vessels, and from the Syama Prasad Mookerjee Port, Kolkata for a fully electric tug. Achieving L1 status in 2 projects of varying nature such as a Platform Support Vessel and an electric tug reflects our competitive positioning and reinforces our capabilities in these specialized fields. Our current order book stands at INR 13, 596 crores.

I am really sorry to interrupt, sir. Your audio is getting chipped.

Can you hear me now?

This is much better. Yes, sir. Please go ahead.

Okay. I was talking about the order book. Current order book stands at INR 13, 596 crores and this comprises mostly of shipbuilding orders with the shipbuilding division contributing to INR 13,296 crores and the other 2 divisions, the engineering and the engine divisions, contributing to the balance of the order book. I am happy to inform you that it is for the first time in the last 10 years that our order book has dropped below INR 15,000 crores, and I consider it a reflection of an excellent execution rate. The current order book comprises 11 projects consisting of 44 marine platforms. These include 9 warships for the Indian Navy: one P17 Alpha Advanced Frigate, 4 Next Generation Offshore Patrol Vessels, and 4 Anti-Submarine Shallow Water Craft; [indiscernible] 2 Coastal Research Vessels; one Acoustic Research Ship. These orders for research ships, again I am happy to inform you that we are the only Indian shipyard currently executing projects for construction of specialized research vessels. In addition, we are also constructing a 1000 cubic meter Trailing Suction Hopper Dredger for the Government of Bangladesh, 13 electric ferries for the Government of West Bengal, 12 Multipurpose Vessels for a German client, one green tug, and 4 Platform Support Vessels for which we have recently received the orders. So in total, 11 projects, 44 marine platforms. Coming to the status of these projects: The last ship of P17 Alpha, again happy to inform you that the first 2 ships have been delivered ahead of schedule, the last ship has clocked nearly 85% physical progress of construction and we intend delivering this ship during this calendar year by November we should be able to deliver this ship. Four of the 8 Anti-Submarine Shallow Water Craft have already been delivered, and the balance 4 ships shall be delivered during the current financial year. The fifth ship has achieved almost 91% physical progress of construction, the sixth ship very closely following with 88%, the seventh and eighth around 65% to 70%. As I said, all 4 ships will be delivered during the current financial year. Coming to the third naval project, the Next Generation Offshore Patrol Vessel: The first ship has already been launched, and the second ship is being launched on the 11th of this month, next week. The third and fourth ship shall be launched during the third and fourth quarter of the current financial year. These ships shall be delivered commencing Q2 FY '28, the first ship, and the last ship shall be delivered during Q2 FY '29. Coming to the Research Vessels: All three projects, we have started physical construction, and the Ocean Research Vessel has touched a physical progress of construction of about 20%, the Acoustic Research Ship about 12%, and the Coastal Research Vessels about 5%. The Coastal Research Vessels, the keel of these vessels shall be laid during September, which is an important project milestone. The ferry project for the Government of West Bengal is progressing smoothly and we intend delivering two of these platforms in September and October, and the balance vessel of the project shall be delivered by April 2027. The Dredger Project for the Government of Bangladesh is progressing smoothly and we are currently at about 70% physical progress of construction. The Multipurpose Vessel Project for the German client is progressing smoothly. This is a 12-ship project. We have already commenced the production of 5 of these ships and the balance shall follow as per the contractual schedule. This in a nutshell gives to you the current order book position, the composition, the status, and the execution plan. Coming to the orders on the anvil: As you are aware, we are the L1 shipyard for the Next Generation Corvette project, it is a high-value project, and we expect the contract to be signed anytime now. We are waiting for the contract conclusion and this will give a much-required boost to our order book. As I also mentioned, 2 contracts we have received the letter of intent very recently, that is the Platform Support Vessel for ONGC and the green tug for the Syama Prasad Mookerjee Port. Five tenders are currently live from the Indian Navy and the Indian Coast Guard. The Indian Navy has a requirement of 120 Fast Interceptor Crafts, the order value could be to the tune of around INR 3,500 crores, the bid submission is due next month. Similarly, 31 Water Jet FAC project -- 31 follow-on Water Jet FAC project, this is an Indian Navy project, again here the order value could be to the tune of around INR 3,500 crores. 22 interceptor boats for which the bids have already been submitted, the order value could be to the tune of around INR 1,200 crores to INR 1,300 crores. Six Next Generation Offshore Patrol Vessels for the Indian Coast Guard, about INR 2,500 crores. And the much-awaited 7 P17 Bravo, which is a high-value project again, the AoN value, the DAC AoN value of this project is INR 70,000 crores. So all these 5 projects of Navy and Coast Guard which are currently live, the total value could be to the tune of plus INR 80,000 crores, INR 80,700 crores or close is the expected order value. Two more projects, Indian Navy's projects, the RFP is expected to come out during the current calendar year: the 12 Mine Countermeasure Vessel Project, as per the RFP conditions it is expected that this will be split between two shipyards, 8 and 4, and the AoN value as accorded by the DAC is INR 36,000 crores. Similarly, another big-ticket item that is the Landing Platform Dock, 4 LPDs, this RFP is expected to come out during the calendar year, the order value is to the tune of around INR 35,000 crores. So in a nutshell, about INR 80,000 crores worth RFPs are currently live, nearly INR 70,000 crores RFPs are expected from 2 of these projects, that is the MCMV and the LPD in the current calendar year. And in addition, what I had just mentioned is only about the defense orders that is both in the Navy and the Coast Guard. In addition, based on the demand aggregation of the non-defense PSUs that is GAIL, ONGC, BPCL and so on, a few tenders are already out: the MR tanker, 4 MR tankers, the tender has already been published; 6 Very Large Gas Carriers (VLGC); 6 Aframax vessels; and another high-value tender for container ships is expected to come soon. So, in a nutshell, if you are taking the defense sector alone, about INR 150,000 crores worth orders are expected in the near future, nearly INR 80,000 crores coming from the RFPs which are live and about INR 70,000 crores expected from the RFPs which are likely to be published during the calendar year. This is excluding the NGC for which we are expecting the contract signing soon. Coming to our expansion plan: As I have reiterated during the earlier conversations with the analysts and investors, our current shipbuilding capacity is for concurrent construction of 28 platforms. With the ongoing modernization within our geographical premises, we expect this to be increased to, we intend increasing this to concurrent construction of 32 platforms by the end of the calendar year, and we feel this capacity would be inadequate to meet the huge demand that exists both in defense and non-defense segments. So it is with this intent that we have decided to go in for both brownfield and greenfield expansion, both on the Western and Eastern seaboards. In West Bengal, we already have 4 shipyards: three dedicatedly for shipbuilding and one for ship repair. In addition to this, we have taken two more premises on long-term lease basis from Syama Prasad Mookerjee Port, and expansion and revitalization project for these 2 facilities have already commenced. In addition, we are setting up a shipyard in West Bengal at Raichak, which is closer to the sea, and we expect the necessary approvals to be accorded during the current calendar year, and we will commence the infrastructure buildup from 2027. This project is likely to take, as with any shipbuilding facility creation, this will take about 3 to 5 years for full operationalization. Similarly, on the Western seaboard, we are setting up a full-fledged total ship solution facility, that means a facility that would encompass shipbuilding, green ship recycling, and ship repair. This we intend proceeding on a PPP model, and we again expect the necessary approvals to be obtained during the calendar year, and the project would commence next year, again expected to take 3 years for operationalization and operations to commence in that facility. In addition, we are focusing on technology, new technology adoption and maximizing use of robotics in our production processes, both in core shipbuilding as well as in Bailey bridge fabrication. This in a nutshell gives you about our financial and physical performance, our order book status, current project execution plan, and the orders on the anvil, and also a glimpse into our expansion plan. With this, I conclude my opening remarks and the floor is open for questions if any. Thank you.

Thank you very much. We will now begin with the question-and-answer session. [Operator Instructions]. Your first question comes from the line of Amit Dixit with Goldman Sachs. Please go ahead.

Yeah, hi. Good evening, everyone, and thanks for the opportunity. Congratulations for a good set of numbers, sir, good set of numbers again. Two questions. The first one is on Next Generation Corvettes. Now the order has been on anvil for quite some time. Just wanted to understand where it is stuck. Are there certain concerns around the orders that have been raised by the relevant authorities? Just wanted to get a brief construct of this because this order has been stuck for quite some time. Part B of the question is assuming the order is given to us, let us say today, then how much time will it take for us to actually start recording revenue?

Thank you. At the outset, thank you for your compliments on the results. Yes, I'd like to state that this is the 17th quarter on a trot that our financial performance has been on an upward trend and hopefully we'll be able to maintain this tempo in the coming quarters too. Coming to the much awaited Next Generation Corvette project, yes, the project contract conclusion has got delayed a bit. We were expecting the contract to be signed either during the end of the last financial year or during the first quarter. But we are confident that the contract would be signed this quarter. And we don't see any red flags with respect to the contract conclusion, that is our acquisition. And to answer your question as to when the revenue recognition would commence, now this project has got, as per the RFP conditions and naturally the contractual conditions, this has got a pre-production period where the design studies would take place and material ordering, equipment ordering will take place. The first revenue recognition will commence next year, that is the financial year FY '28. Revenue recognition will commence from financial year FY '28 when we will be utilizing the activities involved in buying, then the binding data information which we need to progress with the preparation of compartment design and equipment layout. So this revenue recognition will start from the next financial year, assuming the contract is signed during this quarter. Now in shipbuilding, we have a very peculiar kind of revenue recognition pattern where the initial phase, that is if for example a project is a five-year project, the first year the revenue recognition will come through the design-related inputs which will contribute maybe to 5% to 10% of the project cost. Then the physical construction, that comes the second phase which should be between let us say the first year to two and a half, that is 50% of the project duration where revenue recognition will move up to about 20% to 25%. And then comes the very steep upward revenue recognition curve where the equipment and systems which have been bought are lowered onto the ship and the integrations happen. That is the phase where the maximum revenue recognition happens. And then of course the outfitting and the project completion. This is the broad revenue recognition pattern. To answer your specific question, yes, the revenue recognition will commence from the next financial year. Thank you.

And how much time will it take for this order to be completed? NGC order?

NGC is an 8-ship project where 2 shipyards are building concurrently. And the first ship delivery is after 5 years and the project completion is 8 years. 8 years is the project completion time which is given. That means if the order is placed now, the eighth ship of the project, both shipyards put together, would get completed by 2034, '34-'35, that's what I would say.

Very clear, sir. The second question is essentially on the latest AoN trend that we have seen particularly for Navy. There is a lot of emphasis on the unmanned vessels and autonomous platforms. So just wanted to understand our preparedness for that. Does our expansion plan also focused on building certain capabilities on that front or we already have those capabilities and we will be bidding for such RFPs as and when they come?

Yes, very interesting question. To answer your second part first, whether we have the capability: Yes, we have the capability and it is with this intent because we were clear that the Navy having a very clear autonomous roadmap, so we were clear almost three to four years before itself that Navy would go --Navy and of course followed by [Coast Guard] would go in for an autonomous environment where a large number of Unmanned Surface Vessels would come in. So we started with prototype development of an Unmanned Surface Vessel, successfully proved, and just for information that we have also executed a project for the NSTL, Naval Science and Technological Laboratory, Visakhapatnam, a DRDO organization, for an Unmanned Surface Vessel. In addition, an autonomous underwater platform which was developed by us, again, the prototype successfully proved [indiscernible] about a year back. So we are technologically competent and technically ready for execution of these projects. Now, we have been actively participating in the Make projects of the government steered by the Navy for, for example, for the USV, that is USV MC, there is a project which the Navy -- an autonomous project which Navy is steering, we are very much there – we are one of the companies taking part in that. We are again being shortlisted for another project of the Navy which is again for an underwater unmanned platform. So we are very much competent and interested and also actively taking part in these schemes and the projects which Navy has come up for autonomous unmanned platforms. Thank you.

Great, thank you so much and all the best.

Thank you.

Thank you. The next question comes from the line of Dipen Vakil with PhillipCapital. Please go ahead.

Thank you for this opportunity and congratulations on a great execution quarter, sir. Sir, my first question is on the line of your CapEx announcement that you did. Sir, can you help us with the quantum of CapEx that you're envisaging for greenfield as well as brownfield side of it, and what kind of capabilities will it add to your current existing ecosystem in terms of whether the dry dock size will be the bigger one especially in Gujarat, and how will it help you address the bigger and more sizeable opportunities either in defense or commercial side of it? That's my first question.

Thank you. We have a very clear expansion plan, so to, and in turn a clear CapEx infusion plan. Now if I divide this into two buckets: One is the minor projects that we are undertaking, again with very, very clear let us say capability enhancement pattern. For example, 2 parcels that we have taken over from the Kolkata Port Trust, that is Syama Prasad Mookerjee Port, where the capital infusion is limited, where we already commenced the revitalization, and there the capital infusion is expected to be just about INR 200 odd crores. This we'll complete within a year and a half, 18 months we'll be able to complete that. Coming to the larger projects, we are undertaking two projects: One in West Bengal I mentioned it's towards the sea, the land is already with us again on a long-term lease from Kolkata Port Trust. Here we are creating a full-fledged shipyard. We expect the capital infusion to the tune of, DPR is in its final stages, so I'll be able to give you only an approximate figure, it'll be about INR 2,200 crores, which setting up of the facility would take 3 to 5 years because it is a completely greenfield setup. Coming to the West, what we are intending, here the DPR is complete, the environmental clearance has already been obtained, which means this project is moving at a much faster pace. The capital infusion would be to the tune of around INR 2,000 crores. This will be a total ship solution facility as I mentioned during my opening remarks, that this will comprise of shipbuilding, green ship recycling, and ship repair capability under a single roof. Now coming to the specific question which you asked as to what does it add to our current capability: One, our current capability as I mentioned is to undertake shipbuilding, concurrent construction of 28 platforms, and when I say 28 platforms that include platforms up to about 10,000 ton displacement and 12 meters length. This would cater for most of the defense platforms, but then when we come to commercial ships, they are much, much larger in size. So there we have a difficulty at this moment, and that is the intent of creating these facilities: one, to circumvent our riverine constraints, and second, to obviate the length and displacement restrictions. So we intend with the creation of these two facilities, these capacity constraints will be completely obliterated and we will have the capability to build 43 platforms, and the 11 platforms, 11 types of platforms that we have added, 11 numbers, that means from 32 to 43, they'll be large vessels of Aframax and VLGC type. So this is the benefit -- these particular expansion projects that will accrue to the shipyard. Second is, here in Kolkata where our core shipbuilding facilities exist, we'll be focusing, utilizing them focused towards defense shipbuilding, and the facility in Gujarat, while we will use spare capacity there for warship building, the primary focus will be for green ship recycling and building of large-size ships. I hope I answered your question. Thank you.

Absolutely, sir. Sir, second question is, as you mentioned about the tenders which are already out on the commercial side, namely MR tankers, VLGC, Aframax, and even the container ship tender which is expected soon. So, right now how does our technological capability stand for these large-size carriers, and at the same time how do we participate in this tender with the current capacities? Are we looking to partner with some company or also take some tech from foreign company as to how are we participating in for such commercial vessels?

Okay, to start with, during the initial discussions I had mentioned we already won an order for a set of 4 Platform Support Vessels and I want you to understand that this is the first order to be awarded -- the letter of intent to be awarded for among the lot that has been aggregated by the MoPSW from all the PSUs. So we are happy about that. Now coming to the next few projects, that is the MR tanker, the VLGC, and of course the container ships.MR tanker, we are collaborating with one of our sister shipyards, and so are we doing so for the VLGC. In the VLGC tender itself, there is a condition that of the number of vessels they have promulgated, I think it's 8 ships they've promulgated, 2 of them have to be built at a shipyard which has already got proven capacity in building of VLGCs. So ,we along with our partner shipyard in India, we already tied up with one of the foreign shipyards with proven capability and we'll be bidding together, that means the two Indian shipyards will be bidding together for this. Coming to the container ships, yes, currently we do not have the physical capacity because the size of these ships are large, but we are going in for a partnership with one of the other Indian shipyards who has got the dock and [berth] infrastructure to handle this project. So we have a very clear strategy for addressing the limitations that we currently have so that we don't miss out on any of the high-value orders which are coming from this non-defense segment.

That is very encouraging to hear, sir. Thank you so much. Sir, if I can squeeze in one last question. Sir, can you help us understand the execution momentum in FY '27? Will we maintain the similar execution momentum or do you expect some softness in growth numbers from say 38%, 35% to 40% might get slightly lower in FY '27?

Currently we are in an execution phase. Actually if you see last year, we have delivered 8 ships. So naturally when the ships are delivered, the revenue and in turn the profits will increase. We are still in that phase, but we all must be clear that current order book is INR 13,596 crores, and of this, the 2 projects which are major, which means the P17 Alpha and the Anti-Submarine Shallow Water Craft, both, for example the P17 Alpha we are left with about INR 4,500 crores, and the Anti-Submarine Shallow Water Craft about INR 1,816 crores. I mean these are the major projects which are on the anvil of completion. So the current quarter performance we'll be able to replicate in the coming quarters too.

Got it, sir. Thank you so much for answering my questions and all the best, sir, for FY '27.

Thank you.

Thank you. The next question comes from the line of Kavish Parekh with 360 ONE Capital. Please go ahead.

Hi sir, thanks for the opportunity. My question is on GRSE's indigenization levels. Sir, could you elaborate on the current level of indigenization across our portfolio and also identify the key systems, subsystems or components where we continue to remain dependent on imports?

Okay, thank you, a very interesting question and this has been the focus of our government also, indigenization. See, one thing we all must clearly understand that we are platform integrators. Naturally GRSE being Garden Reach Shipbuilders & Engineers, the other part, the engineers part I will answer separately, coming to the shipbuilding part, we are platform integrators. So when we are platform integrators, most of the equipment and weapons or let us say the propulsion engines, they are all nominated by the customers, be it defense shipbuilding or be it commercial shipbuilding. When the nomination comes from the customers, for example if a commercial ship customer wants an engine of let us say German make, we have to procure the German engine, which is a contractual obligation, and therefore expecting indigenization there would be a fruitless exercise. However, with respect to warship building, I will segregate this into four components: float, fight, move, survive. If you are taking the float component, float component mostly comprises of the ship's hull where the structural stability aspects are involved, India has achieved, and so has GRSE achieved, 100% indigenization. But the float component comprises only about 10% of ship cost. Then comes the fight component. Fight component comprises of the weapons and systems. Here I am happy to inform you that from a very, very modest indigenization percentage, we have gone up to almost 60% indigenization today with many of the Indian defense manufacturers producing weapon systems, including my sister company that is BEL [indiscernible]. Now coming to the float component, this is where currently the [indiscernible] because float sometimes -- sorry move comprises of the propulsion engines and the power generation and associated equipment. Here while power generation, that is the diesel alternators, we are 100% indigenous, in case of propulsion engines we have still not achieved indigenization, where government has already initiated both for marine gas turbine as well as for marine diesel engines, but this will take a finite amount of time. Coming to survival, survival is the firefighting equipment, safety equipment and so on, we are about [78%] indigenous. So net, if you take a 100% cost of a ship, we are talking by value, in the last few projects, 2 projects I'll just take which we have completed: The Anti-Submarine Shallow Water Craft where 4 ships have already been delivered, we know exactly what is the kind of indigenization that we can achieve, and the Survey Vessels (Large) which we already completed the project, there we are plus 80% indigenization overall. This is for the shipbuilding sector. Coming to other sectors, let us take Bailey bridge, which is one of my business verticals, we are 100% indigenous, every component is fabricated including subcomponents are fabricated from Indian sources, sourced from India and fabricated here, so it is 100% indigenization. Coming to the other product, let us say marine diesel engine, we have a collaboration with one of the foreign OEMs for co-production of marine diesel engines. When the project fructifies, the indigenization level would be about 55% to 60%.If you are taking about deck machinery, another business vertical of GRSE, we have about 90% indigenous content. So this is where we stand as of today. But then again I go back to my first statement with respect to indigenization that while all of us, the entire ecosystem is striving towards indigenization, it has got its limitations and the time implication, because indigenization does not come like a switch getting on, it takes time. So currently we are let us say about 80% to 85%, maybe it will take about 5 to 10 years of achieving 100% indigenization. Thank you.

Very detailed, sir. Thanks a lot for that. Sir, as a follow-up on the defense side, which domestic suppliers in your view are best positioned to substitute these imported components as procurement within the company becomes increasingly indigenous? Which private sector companies do you think could emerge as meaningful beneficiaries? And lastly, also within the defense electronics part, apart from Bharat Electronics, which suppliers currently have a meaningful wallet share with us?

Very interesting question. Almost all the major private companies are into defense manufacturing, be it L&T, be it Adani, be it Mahindra, be it Kalyani, all of them are in defense manufacturing and each one of them has contributed extensively towards indigenization. So I think that gives you a broad answer about which are the major private companies, I may have missed out somebody, but these are big companies. Now there are a host of startups, host of startups. Today in India about 17,000 MSMEs, about 1000 startups and about 675 innovators are involved in defense manufacturing, and most of them are focusing on new technology-based, I am talking about innovators and startups, most of them are focusing on new technology-based indigenous production. Here the limitation is there is still a percentage which is coming from abroad. So to encourage the startups and innovators, we ourselves, GRSE, my company has taken an initiative and started an open challenge scheme for startups, we got an acronym called GAINS, GRSE Accelerated Innovation Nurturing Scheme. Believe me, the response has been overwhelming, about 101 startups took part last year. So the entire ecosystem is striving towards indigenization, let us see how it moves or how fast it moves. You also asked a question of BEL. In addition to BEL, of course HAL is a major contributor towards indigenization, we also have some links with HAL because marine gas turbines come from them, of course it is [indiscernible] some of them, but a certain amount of indigenization takes place there. ECIL is a part of indigenization, and there are other PSUs like Keltron who also are contributing towards supplying indigenous products to shipbuilding. Thank you.

Thanks a lot for that, sir, very, very detailed explanation. Hope to see the long-anticipated contract getting signed soon. All the very best.

Thank you.

Thank you. The next question comes from the line of Himanshu Pandey with [indiscernible]. Please go ahead. The line for the current participant has been dropped from the queue. We will move onto our next questions. [Operator Instructions] The next question comes from the line of Harshit Kapadia with Elara Capital. Please go ahead.

Yeah, hi. Thanks for the opportunity and congratulations again for a good set of numbers, sir. Would you be able to share the order book breakup for GRSE, sir?

Thank you, Mr. Harshit. Order book total current is INR 13,596.26 crores. Within that, the shipbuilding contributes nearly 95%, that is INR 12,980 crores. And with the other verticals, that is ship repair about INR 96 crores, the Bailey bridges INR 150 crores – sorry the naval surface gun INR 219 crores, Bailey bridges INR 158 crores, [indiscernible] INR 58 crores and our diesel engine plant INR 82 crores. Now I'll just give you a breakup of the shipbuilding order book breakup: P17 Alpha, the last ship INR 4,519 crores, Anti-Submarine Shallow Water Craft about INR 1,815 crores, Survey Vessels (Large) we are left with about INR 225 crores, the NGOPV project about INR 3,075 crores, the Ocean Research Vessel INR 740 crores, the Acoustic Research Ship INR 450 crores, the Coastal Research Vessels INR 458 crores, the ferries INR 203 crores, Multipurpose Vessels and the Dredger put together about INR 1,355 crores. So about 74% of the shipbuilding pie is from the 4 naval projects and the balance 25% is coming from the non-defense segment. There was a period when 95% of the -- 98% of the shipbuilding order book was comprised of defense orders, but now the split breakup has been different, mostly because we have been executing the research ship projects for various [ministries] and of course export orders. So, this in a nutshell is the breakup of our current order book.

Thank you, sir. I just have one more question, sir, on the P&L. Probably, if you have answered this question, I am [indiscernible] reiterating. On the other expense side, you know, the expenses have reduced significantly. Was there any one-off here or what would you attribute this to?