Gujarat Pipavav Q3 profit may slip 27%, volume seen down 5-10%

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26 Aug, 2025 12:21

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Gujarat Pipavav Port's third quarter earnings are likely to be weak with profit falling 27 percent year-on-year to Rs 65 crore due to constrained volumes, according to average of estimates of analysts polled by CNBC-TV18. Bottomline may get impacted by lower other income (absence of dividend income from Pipavav Railway Corporation).

Higher depreciation & amortisation cost, increased deferred tax expenses liability (it started providing for tax though no cash outgo is expected till FY17) may also impact bottomline. Rupee depreciation benefit dollar tariffs may partly be offsetting impact of lower volumes.

Revenue is seen down 3 percent to Rs 179 crore during the quarter compared to Rs 184 crore in same quarter last fiscal.

Sequentially earnings may see improvement as second quarter saw temporary slowdown due to flooding on railway lines. Empty run/lower utilisation of railway lines might further put pressure on topline.

Analysts expect overall volumes to decline by 5-10 percent and container volume to fall 18 percent due to sluggish EXIM trade and shift of CMA CGM liner & another liner to other ports. Realisations may improve due to better product mix.

Operating profit (earnings before interest, tax, depreciation and amortisation) is seen declining 3 percent on yearly basis to Rs 98 crore but margin may expand 20 basis points to 54.7 percent in quarter gone by.

Key issues to watch out for would be container volume growth & average realisation, cargo mix (coal/fertiliser/liquid), expansion plans and any new liner signed.