G.E.SHIPPING 2020-21 Annual Report Analysis

Wed, 31 Mar

G.E.SHIPPING has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

G.E.SHIPPING Income Statement Analysis

• Operating income during the year fell 9.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 39.7% in FY21 as against 31.6% in FY20.
• Depreciation charges decreased by 5.7% and finance costs decreased by 46.2% YoY, respectively.
• Other income grew by 113.9% YoY.
• Net profit for the year grew by 343.4% YoY.
• Net profit margins during the year grew from 5.6% in FY20 to 27.5% in FY21.

G.E.SHIPPING Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	36,867	33,366	-9.5%
Other income	Rs m	2,618	5,599	113.9%
Total Revenues	Rs m	39,485	38,964	-1.3%
Gross profit	Rs m	11,663	13,254	13.6%
Depreciation	Rs m	7,428	7,004	-5.7%
Interest	Rs m	4,502	2,421	-46.2%
Profit before tax	Rs m	2,350	9,427	301.1%
Tax	Rs m	279	242	-13.4%
Profit after tax	Rs m	2,071	9,185	343.4%
Gross profit margin	%	31.6	39.7
Effective tax rate	%	11.9	2.6
Net profit margin	%	5.6	27.5

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G.E.SHIPPING Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 14 billion as compared to Rs 12 billion in FY20, thereby witnessing an increase of 10.1%.
• Long-term debt down at Rs 44 billion as compared to Rs 48 billion during FY20, a fall of 8.2%.
• Current assets rose 12% and stood at Rs 49 billion, while fixed assets fell 2% and stood at Rs 93 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 141 billion as against Rs 138 billion during FY20, thereby witnessing a growth of 2%.

G.E.SHIPPING Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	67,956	77,043	13.4
Current Liabilities	Rs m	12,431	13,688	10.1
Long-term Debt	Rs m	47,857	43,943	-8.2
Total Liabilities	Rs m	138,328	141,456	2.3
Current assets	Rs m	43,354	48,526	11.9
Fixed Assets	Rs m	94,974	92,930	-2.2
Total Assets	Rs m	138,328	141,456	2.3

G.E.SHIPPING Cash Flow Statement Analysis

• G.E.SHIPPING's cash flow from operating activities (CFO) during FY21 stood at Rs 15 billion, an improvement of 3.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -9 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -5 billion, an improvement of 73% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 2 billion net cash flows seen during FY20.

G.E.SHIPPING Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	14,810	15,342	3.6%
Cash Flow from Investing Activities	Rs m	4,845	-8,732	-
Cash Flow from Financing Activities	Rs m	-18,723	-5,053	-
Net Cash Flow	Rs m	2,304	1,473	-36.1%

Current Valuations for G.E.SHIPPING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 62.5, an improvement from the EPS of Rs 14.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 312.4, stands at 4.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 2.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	250.8	227.0
TTM Earnings per share	Rs	14.1	62.5
Diluted earnings per share	Rs	14.5	64.3
Price to Cash Flow	x	3.1	2.4
TTM P/E ratio	x	14.3	4.9
Price / Book Value ratio	x	0.7	0.5
Market Cap	Rs m	45,479	38,586
Dividends per share (Unadj.)	Rs	8.1	9.0

Ratio Analysis for G.E.SHIPPING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY21, from 3.5x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 4.9x during FY21, from 1.5x during FY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 11.9% during FY21, from 3.0% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 9.8% during FY21, from 5.9% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 8.2% during FY21, from 4.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	3.5	3.5
Debtors’ Days	Days	3	2
Interest coverage	x	1.5	4.9
Debt to equity ratio	x	0.7	0.6
Return on assets	%	4.8	8.2
Return on equity	%	3.0	11.9
Return on capital employed	%	5.9	9.8

To see how G.E.SHIPPING has performed over the last 5 years, please visit here.

G.E.SHIPPING Share Price Performance

Over the last one year, G.E.SHIPPING share price has moved up from Rs 207.2 to Rs 312.4, registering a gain of Rs 105.2 or around 50.8%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for G.E.SHIPPING and quarterly results for G.E.SHIPPING)

Read: Latest Annual Report Analysis of G.E.SHIPPING