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

Executive summary

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

• Revenue for Q2 FY25 was ₹1,580 crore, up from ₹1,461 crore in Q2 FY24; H1 FY25 consolidated revenue reached ₹3,282.87 crore.

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

• Consolidated NAV per share as of September 30, 2024, stood at ₹1,463, up from ₹1,263 a year ago.

• Company remains significantly net cash, with $400 million net cash as of September 30, 2024.

Financial highlights

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

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

• Gross debt/equity ratio improved to 0.21 (consolidated), and net debt/equity to -0.32.

• Earnings per share (basic) for H1 FY25 was ₹97.19, compared to ₹82.02 in H1 FY24.

• Operating margin for H1 FY25 was 54.36%, net profit margin was 42.27%.

Outlook and guidance

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

• Offshore business expected to see subdued profitability in H2 FY25 due to rigs off-hire and contract transitions.

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

• Committed to sell one Suezmax crude tanker and one MR product tanker by H2 FY25.

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