G.E.SHIPPING 2021-22 Annual Report Analysis

Fri, 8 Jul

G.E.SHIPPING has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

G.E.SHIPPING Income Statement Analysis

• Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 39.4% in FY22 as against 39.7% in FY21.
• Depreciation charges decreased by 0.4% and finance costs increased by 15.6% YoY, respectively.
• Other income declined by 52.0% YoY.
• Net profit for the year declined by 31.4% YoY.
• Net profit margins during the year declined from 27.5% in FY21 to 17.9% in FY22.

G.E.SHIPPING Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	33,366	35,089	5.2%
Other income	Rs m	6,380	3,061	-52.0%
Total Revenues	Rs m	39,745	38,151	-4.0%
Gross profit	Rs m	13,254	13,816	4.2%
Depreciation	Rs m	7,004	6,979	-0.4%
Interest	Rs m	3,203	3,701	15.6%
Profit before tax	Rs m	9,427	6,197	-34.3%
Tax	Rs m	242	-100	-141.4%
Profit after tax	Rs m	9,185	6,297	-31.4%
Gross profit margin	%	39.7	39.4
Effective tax rate	%	2.6	-1.6
Net profit margin	%	27.5	17.9

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G.E.SHIPPING Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 14 billion as compared to Rs 14 billion in FY21, thereby witnessing an increase of 5.5%.
• Long-term debt down at Rs 40 billion as compared to Rs 44 billion during FY21, a fall of 9.5%.
• Current assets rose 1% and stood at Rs 49 billion, while fixed assets fell 2% and stood at Rs 91 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 140 billion as against Rs 141 billion during FY21, thereby witnessing a fall of 1%.

G.E.SHIPPING Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	77,043	80,513	4.5
Current Liabilities	Rs m	13,683	14,433	5.5
Long-term Debt	Rs m	43,943	39,775	-9.5
Total Liabilities	Rs m	141,451	139,686	-1.2
Current assets	Rs m	48,526	49,046	1.1
Fixed Assets	Rs m	92,925	90,640	-2.5
Total Assets	Rs m	141,451	139,686	-1.2

G.E.SHIPPING Cash Flow Statement Analysis

• G.E.SHIPPING's cash flow from operating activities (CFO) during FY22 stood at Rs 13 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -12 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 billion from the Rs 1 billion net cash flows seen during FY21.

G.E.SHIPPING Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	15,342	13,226	-13.8%
Cash Flow from Investing Activities	Rs m	-8,732	-3,748	-
Cash Flow from Financing Activities	Rs m	-5,053	-11,886	-
Net Cash Flow	Rs m	1,473	-2,032	-

Current Valuations for G.E.SHIPPING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.1, an decline from the EPS of Rs 62.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 405.0, stands at 9.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	227.0	245.8
TTM Earnings per share	Rs	62.5	44.1
Diluted earnings per share	Rs	64.3	44.1
Price to Cash Flow	x	2.8	4.0
TTM P/E ratio	x	4.9	9.2
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	38,586	52,970
Dividends per share (Unadj.)	Rs	9.0	9.9

Ratio Analysis for G.E.SHIPPING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.4x during FY22, from 3.5x during FY21. 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 deteriorated and stood at 2.7x during FY22, from 3.9x during FY21. 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 declined and down at 7.8% during FY22, from 11.9% during FY22. 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 declined and down at 8.2% during FY22, from 10.4% during FY21. 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 declined and down at 7.2% during FY22, from 8.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.5	3.4
Debtors’ Days	Days	3	3
Interest coverage	x	3.9	2.7
Debt to equity ratio	x	0.6	0.5
Return on assets	%	8.8	7.2
Return on equity	%	11.9	7.8
Return on capital employed	%	10.4	8.2

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 371.7 to Rs 405.0, registering a gain of Rs 33.4 or around 9.0%.

Overall, the S&P BSE SENSEX is up 3.1% 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