Guj Pipavav Port

Gujarat Pipavav Port reported a net profit of Rs. 1090 million for Q4 FY25, marking a 57% increase year-on-year, though this was partly attributed to a one-off^📎 provision in the previous year. Revenue for the quarter saw a marginal increase of 1%. For the full fiscal year FY25, net profit stood at Rs. 3984 million, up 13% YoY, also influenced by the prior year's one-off^📎 provision. Full year revenue remained at par with the previous year, while EBITDA and EBIT were marginally higher by 1%, with EBITDA margins maintained at 58.5%.

The RORO business demonstrated strong performance in Q4 FY25, handling 49,000 cars and achieving a 42% growth, marking its highest ever quarterly volume. Similarly, the liquid business recorded its highest ever quarterly volume in Q4 FY25, with 402,000 metric tonnes, growing 4% YoY. In contrast, container volumes were muted, declining by 9% in Q4 FY25 and 14% for the full year, primarily due to geopolitical situations. Bulk volumes also saw an 8% decline in Q4 FY25, mainly due to lower mineral imports, partially offset by increased fertilizer volumes.

Management expects liquid volumes to continue strong performance with a 5-7% growth in FY26, and RORO volumes are projected to grow by about 40%. Dry bulk volumes are anticipated to remain flat. While the container market outlook is difficult to predict, a 3-5% growth is cautiously expected, with more detailed updates promised next quarter. A 5% tariff increase implemented in January is expected to contribute 2-3% to overall revenue growth. Underlying EBITDA margins are targeted to be in the range of 59-60% for the year.

The company is progressing with its new liquid jetty project, with work expected to commence in Q2 FY26 and go-live anticipated in Q3 FY26. This investment is entirely self-funded through internal accruals, with no new debt planned. Additionally, AVTL is commissioning two large cryogenic tanks, expected to be completed in the coming quarter (Q1 FY26), which will enhance liquid throughput. The Board has proposed a final dividend of Rs 4.2 per share, bringing the total dividend for FY25 to Rs 8.2 per share, consistent with the company's profit-linked dividend policy.

The Red Sea diversions and subsequent blank sailings have significantly impacted container volumes, leading to a 9% decline in Q4 FY25 and a 14% decline for the full year. Management noted a considerable decline in capacity (25-30%) in April-May due to blank sailings. While there's an uptake on Trans-pacific routes, the situation remains fluid, and the company is cautious about providing a firm outlook, stating that the full impact and resolution of these disruptions will be clearer in the coming quarters.

A 5% tariff increase was implemented effective January, which is expected to result in an overall revenue increase of 2-3%. For Q4 FY25, container realisations were in the range of Rs. 9000-9400 per TEU, dry bulk at Rs. 550-650 per metric tonne, and liquid at Rs. 600-650 per metric tonne. For FY24, container realisations were Rs. 8000-8500 per TEU, and liquid and dry bulk were in the range of Rs. 450-600 per metric tonne.

Regarding the Gujarat Maritime Board (GMB) license renewal, management stated that everything is in order with no red flags. However, the final timelines for the decision rest with the GMB, and the company is not in a position to provide a specific timeline. The company continues to engage with the GMB on this matter, which is crucial for its long-term operational certainty.