Gateway Distriparks' first quarter earnings are expected to be muted. Profit is seen rising 2.2 percent year-on-year to Rs 37.7 crore, according to average of estimates of analysts polled by CNBC-TV18.
Profitability may be affected by higher tax expenses on the gain on sale of 12 acre land to Gateway Rail.
Revenue is likely to decline 12.3 percent to Rs 245.3 crore compared to Rs 279.9 crore in the year-ago period. Analysts expect flat volumes and realisations in the container freight station (CFS) segment while they expect volume contraction of 4-7 percent in the rail logistics division due to EXIM trade slowdown.
Rail division volumes may also decline due to shut-down of rail evacuation from Pipavav. Higher tax rates may have impact on rail business earnings.
Overall volumes may also affect on exit of JV in Ludhiana & Shutdown at Chandra CFS, Chennai.
Even the company, post Q4FY15 earnings, said volume growth may be subdued in FY16, but revenues & margins may sustain. According to the firm, lower exports may bring down volumes this year.
Operating profit may decline 4 percent year-on-year to Rs 72.4 crore but margin may expand 260 basis points to 29.5 percent in the quarter gone by.
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