Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
GE Shipping: Money spinning FY01 - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • May 3, 2001

    GE Shipping: Money spinning FY01

    The Great Eastern Shipping Company has reported a 100% growth in net profits for the fourth quarter ended 31st March 2001 to Rs 646 m. Sales for the fourth quarter have also gone up by 30% to Rs 3,006 m, which is primarily on account of a 98% rise in freight and demurrage income. However, the sales would have been higher except for a fall in income from project division (the company hived off this unit last year) and marine engineering division.

    (Rs m) 4QFY00 4QFY01 Change FY00 FY01 Change
    Sales 2,313 3,006 29.9% 9,145 10,060 10.0%
    Other Income 139 106 -23.8% 319 391 22.7%
    Expenditure 1,466 1,803 22.9% 6,260 6,073 -3.0%
    Operating Profit (EBDIT) 847 1,203 42.0% 2,884 3,986 38.2%
    Operating Profit Margin (%) 36.6% 40.0%   31.5% 39.6%  
    Interest 178 170 -4.5% 608 717 18.0%
    Depreciation 495 491 -0.8% 1,849 2,005 8.5%
    Profit before Tax 313 648 106.9% 746 1,655 121.7%
    Other Adjustments 49 126 156.8% 482 361 -25.1%
    Tax 40 129 222.9% 160 240 50.0%
    Profit after Tax/(Loss) 322 646 100.2% 1,068 1,775 66.2%
    Net profit margin (%) 13.9% 21.5%   11.7% 17.6%  
    No. of Shares (eoy) (m) 258.8 217.8   258.8 217.8  
    Diluted number of shares 217.8 217.8   217.8 217.8  
    Earnings per share (Rs)       4.9 8.2  

    Net profit for FY01 has increased by 66% to Rs 1,775 m. The growth in net profits would have been higher but for a 38% rise in expenditure. This was primarily on account of a 60% rise in other expenses (buy-back and demerger expenses). However, operating margins have gone up from 32% in FY00 to 40% in FY01 thanks to the higher freight and tanker rates. Extraordinary item here refers to the profit from sale of ships (the company has sold two bulk carriers and one harbour tug vessel in the fourth quarter).

    The company has bought back 42 m shares upto March 2001 out of which 41 m shares have been extinguished, thereby reducing the paid-up capital of the company to Rs 2,179 m. After the year-end, the company further bought back 0.9 m shares and extinguished 1.8 m shares, thereby reducing the paid-up equity share capital further to Rs 2,159 m.

    The Board of Directors have further decided to buy back equity shares, upto Rs 1 bn at a price not exceeding Rs 42 per share from the open market through the stock exchange.

    The stock is trading at Rs 32 at a P/E multiple of 4x the FY01 earnings. The company has declared a dividend of Rs 2.75 per share, which works out to a dividend yield of 8.6%.



    Equitymaster requests your view! Post a comment on "GE Shipping: Money spinning FY01". Click here!


    More Views on News

    G E Shipping: Feeling Pressure From the Offshore Segment (Quarterly Results Update - Detailed)

    Aug 18, 2017

    GE Shipping reported a subdued performance on the back weak offshore segment.

    G E Shipping: A Bad Quarter (Quarterly Results Update - Detailed)

    May 9, 2017

    GE shipping registered a loss in 4QFY17 due to weak global shipping market and lower crude prices which negatively impacted the offshore segment.

    G E Shipping: Crude, Product, and Offshore Segment Drag Performance (Quarterly Results Update - Detailed)

    Feb 16, 2017

    G E Shipping has reported a 22.8% YoY decline in the topline while the bottomline has declined by 33.4% YoY.

    Cochin Shipyard Limited (IPO)

    Aug 1, 2017

    Should you subscribe to the IPO of Cochin Shipyard Ltd?

    G E Shipping: Pressure from All Segments Drags Performance (Quarterly Results Update - Detailed)

    Nov 21, 2016

    G E Shipping has reported a 20.2% YoY decline in the topline while the bottomline has declined by 24% YoY.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 21, 2017 (Close)


    • Track your investment in G.E.SHIPPING with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Compare Company With Charts