Mumbai-based logistics company Gateway Distriparks is expected to report subdued earnings for July-September quarter due to weak volume growth. Consolidated profit may decline 31 percent year-on-year to Rs 33 crore and revenue is likely to fall 17.6 percent to Rs 241.2 crore in quarter gone by, according to average of estimates of analysts polled by CNBC-TV18.
Volume may decline due overall slowdown, issues at Pipavav & Mundra and discontinuation of Sahnewal joint venture. Operations at Chandra CFS continued to remain shut during the quarter.
Topline may be supported by higher realisations in both rail and CFS (container freight stations) segments. Realisations may improve during the quarter as company has passed through hike in haulage charges though service-tax pass through is yet to happen.
Analysts say the company is likely to pay full tax rate in rail business now and take 80-IA tax benefit later. So higher tax rate may hurt profit further.
Operating profit (earnings before interest, tax, depreciation and amortisation) may fall 23 percent year-on-year to Rs 66.4 crore and margin may contract 178 basis points to 27.5 percent in quarter gone by.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
