Gujarat Pipavav port posts 16% gain in FY25 profit

By Admin

30 May, 2025

Introduction
Gujarat Pipavav Port Ltd, also known as APM Terminals Pipavav, has reported a robust financial performance for the financial year 2025, registering a 16% year-on-year increase in consolidated net profit, reaching ₹3,969 million. This growth, despite several operational headwinds, highlights the port’s strong diversification strategy and growing focus on liquid and Ro-Ro cargo segments.

Surge in Ro-Ro and Liquid Cargo Volumes
A major driver behind this profitability surge was the sharp rise in Ro-Ro (Roll-on/Roll-off) cargo, with volumes increasing by an impressive 71% to 164,977 units, supported largely by stronger shipments from Original Equipment Manufacturers (OEMs). Simultaneously, liquid cargo volumes, particularly LPG, grew significantly by 14%, totaling 1,469,504 metric tonnes for the year.

Revenue Growth Flat Amid Container and Dry Bulk Decline
Despite the impressive gains in certain cargo categories, revenue remained flat at ₹9,876 million in FY25, nearly unchanged from the previous fiscal year. This stagnation can be attributed to a sharp decline in the port's core container handling operations. The total number of containers handled dropped by 14.1%, from 808,000 TEUs in FY24 to 694,000 TEUs in FY25. The container rail traffic also mirrored this downturn, falling from 2,281 trains to 1,961 trains, reflecting weakened transshipment and EXIM (export-import) trade activities.

Dry Bulk Cargo Takes a Hit
The dry bulk cargo segment too witnessed a steep decline, primarily due to lower volumes of fertilizers and coal. The port managed 2.21 million tonnes in FY25, marking a decline of 18.45% compared to the previous year. This further added to the pressure on the company’s revenue streams.

Dividend Announcement
In a move that will benefit its shareholders, the Board of Directors has recommended a final dividend of ₹4.2 per share, reflecting the company’s commitment to maintaining returns even amid operational challenges.

Conclusion
Gujarat Pipavav Port's FY25 performance underscores the importance of cargo diversification in today’s volatile global trade environment. While the decline in container and bulk cargo volumes posed challenges, the growth in liquid and Ro-Ro cargo segments played a crucial role in boosting profitability. As the port continues to evolve with changing trade dynamics, its strategy appears well-aligned for sustaining future growth.