- 15 May 2023
- ICICI Securities
GE SHIPPING REPORTS STRONG PERFORMANCE, FURTHER PUSHING CASH PROFITS
GESHIP - 923 Change: 11.50 (1.26 %)News: GE Shipping's Q4FY23 revenues grew 3% QoQ to Rs 1456 crore while EBITDA grew 6% to Rs 847 crore (EBITDA margins expanded 213 bps to 58.2%). Subsequently, PAT grew 15% to Rs 722 crore. The operational performance was further supported by a Rs 46 crore tax reversal on the offshore side. For FY23, the company generated Rs 2775 crore of FCF (29% yield). The net cash on the book is in the tune of US$140 million (i.e. 12% of MCap).
Views: Consolidated NAV moved from | 670 per share in FY22 to | 1160 per share in FY23. The company does not expect buyback at the CMP due to buyback tax of 23%. Shipping asset prices are moving at multiyear highs due to weak supply of ships and hence benefiting the company on spot sailing. Some of the offshore assets are due for repricing and would happen at higher values, due to better oil & gas macros.
Impact: Positive