The Great Eastern Shipping Company (500620) Q2 24/25 earnings summary

Executive summary

• Consolidated net profit for Q2 FY25 was INR 576 crore, with normalized net profit at INR 623 crore, reflecting strong operational performance year-over-year.

• Revenue for Q2 FY25 was INR 1,580 crore, up from INR 1,461 crore in Q2 FY24; H1 FY25 consolidated revenue was ₹3,282.87 crore, up from ₹2,796.17 crore year-over-year.

• Net asset value (NAV) per share as of September 30, 2024, stood at INR 1,463 consolidated and INR 1,184 standalone.

• 11th consecutive quarterly dividend of INR 7.20 per share declared, with total interim dividends for the year at ₹16.20 per share.

• Company maintains a strong net cash position, about $400 million as of September 30, 2024.

Financial highlights

• EBITDA for Q2 FY25 was INR 904 crore (normalized), up from INR 843 crore in Q2 FY24.

• Earnings per share (EPS) for Q2 FY25 was INR 43.62 (consolidated, normalized); H1 FY25 basic EPS was ₹97.19.

• Net cash generated from operating activities in H1 FY25 was ₹1,605.91 crore.

• Profit before tax for H1 FY25 was ₹1,457.72 crore, up from ₹1,212.79 crore year-over-year.

• Other income declined quarter-on-quarter due to lower mark-to-market gains from overseas investment subsidiaries.

Outlook and guidance

• No formal earnings or margin guidance provided due to significant spot market exposure.

• Revenue coverage for Q3 FY25: Crude carriers 54%, product carriers 62%, LPG carriers 100%, dry bulk 64%.

• Offshore segment expected to see subdued profitability in H2 FY25 due to rigs coming off contract and off-hire periods.

• Several vessel sales and purchases were completed or contracted, indicating ongoing fleet optimization.

• Asset prices for tankers remain firm, but dry bulk prices have softened, potentially offering future acquisition opportunities.