The Great Eastern Shipping Company (Gesco) has posted a 25% drop in net profits for the second quarter ended 30th September 2000. However, this is primarily because of lower extraordinary income from sale of ships to the extent of Rs 2 m in 2QFY01 (Rs 380 m in 2QFY00). Operating profits have almost doubled compared to respective previous quarter, with margins moving up from 30% in 2QFY00 to 40% in 2QFY01.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Diluted number of shares
Earnings per share*
Depreciation is higher since the company has revised the average age of its gas carriers from 30 years to 27 years. If we were to remove the extraordinary item, then net margins have also shown sharp uptrend.
The company has proposed to buy-back its own equity shares, upto the extent of Rs 1.5 bn at a price not exceeding Rs 42 per share. At this price, the number of shares the company is targeting to buy-back is approximately 35 m. This would increase the promoters stake in Gesco to nearly 15%.
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