GE Shipping has smooth sailing

Great Eastern Shipping or GE Shipping as it is more popularly recognized posted a good set of numbers for Q4FY15. Rise in topline and other income helped the company end the quarter with a huge 104% (YoY) jump in consolidated net profit at Rs.137 crore. Net sales was up 10% at Rs.876 crore and other income was up at Rs.55 crore of which Rs.10 crore was forex gain. Costs rose 26% - employee cost comprises the biggest chunk of the cost at 26% and it was up 8%. Consequently, EBITDA for the quarter was down 9% at Rs.318 crore and margins came in at 35.97%, which was a huge drop from 56.32%.

The good performance can be attributed to the shipping segment which contributes 56% to total income and it posted a whopping 191% jump in EBIT on a 31% rise in revenue. Offshore, which contributes balance 44%, showed a 5% drop in EBIT. The company ended FY15 with a consolidated net profit of Rs.748 crore, up 30%.

Its average Time Charter Yield (TCY) earned over past 12 months for crude carriers was up 32% at $30,324/day, product carrier including gas was up 56% at $23,034.per day and dry bulk fell 49% at $7717/per day. At end of FY15, the company has a fleet of 29 ships with an average year of 9.9. The company is already covered for the rest of year in terms of cargo booking – crude at 27%, product at 34% and dry bulk at 15%.

The market is obviously enthused with the performance and the stock, with volumes up 1.5 times, it is currently up 1.5% at Rs.356 with an intra day high at Rs.364. Its 52-week high stands at Rs.457.