Pipavav Port, in Gujarat, India, has reported a decline in standalone net profit for the second quarter of the fiscal year due to low sales and higher expenses.
The port reported a net profit result of US$8.13m (INR531m) which is down 41% compared to this time last year.
Keld Pedersen, managing director of APM Terminals Pipavav, told Port Strategy: “The operating results at the EDBITA level (company's earnings before interest, taxes and depreciation) were lower by 20%.”
“This was mainly impacted due to lower container and bulk volumes because of the disruption of rail services in adverse weather conditions during July,” he added.
As net sales during the quarter declined, the total expenses increased and shares of the company trading on BSE went down 10.17%.
Mr Pedersen continued: “The drop in operating results was partly offset by the commencement of ro-ro services in August and the gradual ramp up of liquid volumes.”
“The net result during this quarter was also impacted by an impairment write back of US$9.25m (INR604m) and a deferred tax liability charge of US$10.43m (INR681m) in accordance with accounting standards,” he concluded.
