Gujarat Pipavav Port Ltd Management Discussions

^{For the year ended 31 March 2025}

^Introduction

^{The Company is presenting financial statements as per the requirement under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time.}

^{The following discussion and analysis of the financial and operational performance of Gujarat Pipavav Port Limited is intended to provide an analysis of the business and the financial statements for the year under review, with selected comparative information for the year ended 31 March 2024. This section has been prepared by the Management of Gujarat Pipavav Port Limited (referred to as "APM Terminals Pipavav" or "the Port" or "the Company") and should be read in conjunction with the financial statements and the notes thereon, which follow the section.}

^{The Company holds 38.8% shares in Pipavav Railway Corporation Limited (PRCL) and in view of the provisions of Section 2(6) of the Companies Act, 2013, PRCL is an Associate Company. Pursuant to the provisions of Section 129 of the Act, PRCLs accounts have been consolidated with the Companys accounts. The Companys Consolidated financials include its share of profit in PRCL.}

^{The Companys financial statements have been prepared on Going Concern basis and on Accrual basis of Accounting under the Historical Cost Convention and in accordance with Indian Accounting Standards.}

^Background

^{APM Terminals Pipavav, Indias first private sector port, operates an all-weather port located on the South-west coast of Gujarat at around 152 nautical miles North-west of Mumbai. The port lies on a strategic international maritime trade route connecting India to various geographies. The Ports Container handling capacity is 1.35 million TEUs. The Bulk Cargo capacity is approximately 4 to 5 million MT depending on cargo mix and Liquid Cargo capacity is approximately 2 million MT. The RoRo vessels for car exports are handled on the Container berth.}

^{APM Terminals is the Lead Promoter and holds 44.01% of the total shareholding of the Company. APM Terminals operates 60 terminals and ports across 33 countries and is one of the worlds most comprehensive port network operator. It is uniquely positioned to help both shipping line and landside customers grow their business and achieve better supply chain efficiency, flexibility and dependability. APM Terminals has a team of over 33,000 industry professionals focused on delivering the operational excellence and solutions, businesses require to reach their potential.}

^{Economy & Port Sector}

^{Global Economic Outlook:}

^{The global economy demonstrated strong resilience during the Year 2024, as it grew by 3.2% as against the estimated growth rate of 3.3%, despite several headwinds such as inflation, geo-political challenges, supply chain disruptions etc. This strong resilience increased the growth rate expectations for the Year 2025 to 3.6%. Then the world was struck with a flurry of tariff announcements by the US challenging the existing rules while the new tariff rules are still not known. These announcements triggered counter-measures by some of the major trading partners and brought policy unpredictability. If this fluidity continues for a long period of time and is not addressed quickly, it will significantly slow down the global growth. Some of the global multilateral agencies have downgraded the growth rate for the Year 2025 from 3.6% to 2.8% and in the Year 2026 the growth rate is likely to be around 3%.}

^{The US paused the tariff increase for 90 days for several countries but at the same time increased the tariff for China. After a tit-for-tat between the two major economies, they have mutually agreed to de-escalate the trade war and resolve differences through dialogue. This 90-day relief period is likely to surge the trade between the two countries as the US retailers stockpile the Chinese goods. This will likely lead to shift of capacities by the shipping lines to this busiest trade lane between China and the US and might result into higher ocean freight rates and challenge in availability of the containers. The voyage duration will also be longer due to the vessels going through the Cape of Goodhope. The meltdown by the US towards China also demonstrates its dependability on the Chinese supply chain.}

^{The swift escalation of trade tensions has led to extremely high level of policy ambiguity. It could also lead to high inflation and softening of consumption. Hence the multilateral agencies have lowered the US growth estimate by 0.9% at 1.8%. Chinas growth estimate is lowered by 0.6% to 4% and the Euro zone is likely to grow at 0.8%. The Emerging Market economies are likely to grow at 3.7%, lower by 0.5%. In order to address the uncertainties in Trade Policy and to improve the growth prospects, the countries will need to quickly forge new trade agreements to ease the overall trade policy and facilitate broad-based gains.}

^{The other important element that needs to be addressed swiftly by the economies is Climate Change impact. The countries need to formulate well designed policies to include investment in renewable and energy efficient technologies. Many countries are transitioning from fossil fuel to renewables to improve energy security and generate macroeconomic benefits including low carbon and resilient growth but this area of Climate Change needs increased attention of the Governments to address the rapidly increasing global warming.}

^{Outlook of Indian Economy}

^{The growth outlook for India is more stable as compared to the other countries. The Indian economy is likely to remain fastest growing major economy over two years and is projected to grow at 6.2% in the Year 2025 and at 6.3% in the Year 2026 supported by private consumption. The impact of heightened global trade tensions and growing uncertainty has led to slight moderation but the overall outlook continues to remain strong. This consistency signals not only the strength of Indias macroeconomic fundamentals but also its capacity to sustain momentum in a complex international environment. It also reaffirms Indias economic resilience and the countrys role of key driver to the global growth.}

^{While the world grapples through the implications of trade tensions, the aging global population is witnessing a major demographic shift. The silver economy (population over 65 years of age) is increasing rapidly with far-reaching implications for the economies. The fall in the proportion of working-age individuals leads to higher dependency ratio wherein fewer workers support more retirees and increased healthcare spending. India has one huge advantage of favourable demographics and a large working class that provides strong growth to the consumption economy. This demographic advantage also has an element of concern i.e. regular creation of sufficient number of jobs for the youth. For that purpose the country needs robust and growing manufacturing sector. Unfortunately, the countrys manufacturing sector has remained stagnant over last 10 years. The manufacturing sectors share of GDP was at 17.3% in the Year 2014 and remains at the same level in the Year 2024. Indias Exports as a share of GDP has fallen from 25.2% in the Year 2014 to 22.7% in the Year 2024. For a vibrant and strong manufacturing ecosystem in the country, the private sector and the Government authorities need to work closely to formulate an action plan. The Government of India introduced Production- linked incentives (PLI) scheme in the Year 2020 to provide financial incentives to manufacturers based on certain measurable outcomes. Over time, the PLI scheme has been extended to 14 sectors with an outlay of over USD 22 billion spread over five years. The manufacturing of the mobile phones in India has seen phenomenal success under the PLI scheme. This success needs to be replicated in other manufacturing industries namely, Textiles, Bulk Drugs, Pharmaceuticals, Readymade Garments, Electronics and Auto Components. These have been the core strength industries for the country in the past but somehow these industries have not been able to scale up taking the advantage of the PLI scheme. These industries need to evaluate the actions required to be taken by them and the support required from the Government for increasing their competitiveness in the global markets. But India does not have luxury of time to become competitive and needs to move quickly to present itself as a viable option to the global manufacturing companies looking for the alternatives for diversifying their supply chain.}

^{One factor that clearly needs Government intervention is reduction in the Inland Logistics cost, if the Indian manufacturing wants to be globally competitive. This can be achieved by making the rail freight cost competitive compared to the road freight. While the last leg of connectivity of Western Dedicated Freight Corridor (DFC) to JNPT is yet to be commissioned, the ports in Gujarat are already connected to DFC since September 2021. DFC has definitely reduced the transit time by almost 50%, it has benefited the Rail operators as they are able to do multiple trips with the same rolling stock. As far as the Importers/ Exporters are concerned, they do not get any cost benefit for using DFC and hence their inland logistics cost remains the same. This mammoth rail infrastructure remains under- utilised while the road infrastructure continues to be under pressure. The intervention by the Government to make rail freight cost competitive will address the dual purpose of reduction in inland logistics cost and improvement in capacity utilisation of DFC. The road and rail transport needs to complement each other. While the long haul movement can be done through double stack container trains, the road transportation can take care of first and last mile connectivity doing multiple short haul movements.}

^{Business Outlook}

^{During the financial year ended 31st March 2025, the West Coast ports handled 17.5 million TEU of Containers as compared to 15.9 million TEU, an increase of over 10%. The Container volume at Pipavav reduced by 14% from 808,464 TEUs to 694,899 TEUs. This reduction has been due to unreliable schedule of the vessel calls at Pipavav resulting into the cargo owners moving the cargo to other ports providing multiple vessel connectivity options. The vessel schedule unreliability can be attributed to the Red Sea crisis making the voyage longer and increasing the transit time. It impacts the schedule of the vessel calls at the port thus the shipping lines consolidate the number of port calls.}

^{Dry Bulk cargo volume at Pipavav reduced by 18% for the financial year ended 31st March 2025 from 2.71 million MT to 2.21 million MT. This reduction is due to lower Fertiliser volume and due to temporary suspension of handling Coal for operational reasons. The Fertiliser import by the Government is likely to increase during the current financial year and the port is geared to handle higher volume.}

^{The Liquid cargo volume increased by 14% from 1.28 million MT to 1.46 million MT primarily driven by the increase in LPG volume. The rail evacuation of LPG is gaining good traction at Pipavav Port as it helps the Oil Marketing Companies to reach the LPG bottling plants located in the extended hinterland and at a much lower cost. The LPG tank farm operator at Pipavav is setting up the cryogenic tanks and with increase in pumping rate, the existing infrastructure will marginally increase the handling capacity at the berth. The Companys Board of Directors have already approved the capex for setting up a new Liquid Berth. The statutory and regulatory approval required for the new Liquid Berth is in progress and is taking longer time than anticipated. As per the original plans the new berth was to get commissioned by December 2025 but due to the delays in statutory and regulatory approvals, the new berth is likely to be commissioned by December 2026.}

^{In terms of RoRo volume, the Company handled Car exports of 164,977 units during the financial year ended 31st March 2025 as compared to 97,120 units during the previous financial year, an increase of over 70%. The Company had commissioned 42,000 sq. mtrs. of open stackyard during previous year. With increase in inland movement of cars by rail from the OEMs facilities to Pipavav, the Company has upgraded the rail yard infrastructure by addition of one more siding. This will enable the port to handle two trains simultaneously.}

^{The rail evacuation of LPG and the Cars is gaining good traction amongst the customers. This will also help in increasing the Revenue of Pipavav Railway Corporation Limited (PRCL) the Associate company. The improvement in Container volume will further strengthen the rail product from Pipavav Port.}

^{RISKS AND AREAS OF CONCERN:}

^{The Geo-political situation and the Tariff war initiated by the US is creating uncertainty in global trade thus raising the risk of economic slowdown. The countries need to quickly resolve the tariff issues by closing their agreements and for broad based growth.}

^{Also, the West Coast of India has seen increased frequency of cyclone since last few years leading to disruption in operations due to power failure from the grid supply. The Company is in the process of setting up a captive Genset facility that will cater to the power requirement for port operations, as part of the Business Continuity Plan.}

^{Operations Review}

^{The Container volume for the year under review at 694,899 TEUs is lower by 14% compared to 808,464 TEUs in the previous year. The port has been impacted by unreliable schedule of the vessel calls because of the Red Sea challenges. Consequently, the cargo owners move the cargo to other ports providing multiple vessel connectivity options.}

^{The Dry Bulk cargo volume at West Coast Ports including Pipavav mainly comprise Coal and Fertilizer Imports. The Port handled 2.21 million MT of Dry Bulk Cargo during the year under review compared to 2.71 million MT handled during the previous year. The decrease of over 18% is mainly due to reduced fertiliser imports and temporary suspension of Coal handling due to operational reasons.}

^{On Liquid cargo front, the Port handled about 1.46 million MT during the year under review as compared to 1.28 Million MT in the previous year. The increase of over 14% is due to higher LPG imports. The rail evacuation of LPG is gaining good traction at Pipavav Port as it helps the Oil Marketing Companies to reach the LPG bottling plants located in the extended hinterland and at a much lower cost. The LPG tank farm operator at Pipavav is setting up the cryogenic tanks and with increase in pumping rate, the existing infrastructure will marginally increase the handling capacity at the berth. With reference to the proposed new Liquid Berth, the statutory and regulatory approval required is in progress and is taking longer time than anticipated. As per the original plans the new berth was to get commissioned by December 2025 but due to the delays in statutory and regulatory approvals, the new berth is likely to be commissioned by December 2026.}

^{The Car exports were 164,977 units as against 97,120 units in the previous year. The strong increase of over 70% is being driven by strong rail movement of cars from the OEMs facilities to Pipavav Port. With increase in inland movement of cars by rail to Pipavav, the Company has upgraded the rail yard infrastructure by addition of one more siding. This will enable the port to handle two trains simultaneously.}

^{The rail product continues to gain strong traction for LPG imports and Car exports at Pipavav Port.}

^{Financial Review}

^{Dividend declared/ recommended and the Dividend Distribution Policy}

^{During the year under review, the Board of Directors had declared an Interim Dividend of Rs. 4.00 per share in their Meeting held on 6 November 2024 and it has been paid. The Board now recommends a Final Dividend of Rs. 4.20 per share subject to the approval by the Members in the Companys Annual General Meeting proposed for 4 September 2025.}

^{The Companys Dividend Distribution Policy states as follows:}

^{Dividend is the Companys primary distribution of profits to its Shareholders. The Companys objective is to sustain a steady and consistent distribution of profits by way of Dividend to its Shareholders while considering the following:}

^{(a) The circumstances under which the shareholders can or cannot expect dividend}

^{The Company shall endeavour to pay Dividend to its shareholders in a steady and consistent manner except the following circumstances:}

^{(i) During no growth or weak growth in the trade requiring the Company to retain its earnings to be able to absorb unfavourable market conditions and for meeting the business requirements;}

^{(ii) To meet its funding requirements for expansion and growth;}

^{(iii) The Companys Joint Venture with Indian Railways, Pipavav Railway Corporation Limited requires equity infusion from its shareholders.}

^{During such times the Company may decide to retain the earnings instead of distributing to the shareholders. The distribution of Dividend can be by way of Interim Dividend and/or by way of Final Dividend.}

^{(b) The financial parameters that will be considered while declaring dividend}

^{The Company shall consider the following parameters while declaring dividend:}

^{i) Current years profit:}

^{i. after setting off carried over previous losses, if any;}

^{ii. after providing for depreciation in accordance with the provisions of Schedule II of the Act;}

^{iii. after transferring to reserves such amount as may be prescribed or as may be otherwise considered appropriate by the Board at its discretion.}

^{ii) The profits for any previous financial year(s):}

^{a) after providing for depreciation in accordance with law;}

^{b) remaining undistributed; or}

^{iii) out of (i) or (ii) or both.}

^{In computing the above, the Board may at its discretion, subject to provisions of the law, exclude any or all of (i) extraordinary and exceptional income, generated from activities other than regular business (ii) extraordinary charges (iii) exceptional charges (iv) one off charges on account of change in law or rules or accounting policies or accounting standards (v) provisions or write offs on account of impairment in investments (long term or short term) (vi) noncash charges pertaining to amortization or ESOP or resulting from change in accounting policies or accounting standards.}

^{(c) Internal and External factors that would be considered for declaration of dividend}

^{The Companys Board shall always consider various Internal and External factors while considering the quantum for declaration of dividend such as the overall Economic scenario of the country, the Export Import trade of the country, the statutory and regulatory provisions, the Companys own performance, its profitability, its growth plans, the performance and funding requirements of its joint venture Rail Company and such other factors as may be deemed fit by the Board.}

^{(d) Policy as to how the retained earnings will be utilised}

^{The retained earnings would mainly be utilised for the purpose of the Companys growth plans, the funding requirements of its joint venture Rail Company and for all such activities that in the Boards opinion shall enhance the shareholders value.}

^{(e) Provisions with regard to various classes of shares}

^{The Company currently has only one class of shares namely Equity shares. In case the Company issues any other class of shares, this Policy shall be modified suitably for stipulating the parameters for distribution of dividend to all classes of shares.}

^{Financial Results}

^{The Companys Revenue from Operations consists of Income from Port Services and other Operating Income. Total Revenue from Operations for the year ended 31 March 2025 of Rs. 9,876.73 million is flat against Rs. 9,884.29 million during the previous year.}

^{Income from Port Services consists of Income from Marine Services, Container & Cargo Handling, Storage services as well as value-added Port Services. Income from Port Services at Rs. 9,142.17 million during the year under review was lower by about 1% against Rs. 9,206.79 million for the year ended 31 March 2024.}

^{Other Operating Income comprises incidental Income from Operations and lease rentals from sub-leasing of land to various Port users. Other Operating Income for the year ended 31 March 2025 at Rs. 734.56 million was higher by over 8% as against Rs. 677.50 million in the previous year.}

^{Total Expenditure consists of Operating expenses, Employee benefits, Finance Cost, Depreciation and Other expenses. The Company incurred a Total Expenditure of Rs. 5,330.28 million during the year under review were marginally lower as against Rs. 5,402.97 million during the previous year.}

^{Operating Expenses primarily include Equipment Hire charges, Handling expenses, Waterfront Royalty and Other direct costs. Operating expenses were lower by about 3% at Rs. 1,689.17 million during the year under review as against Rs. 1,746.80 million for 31 March 2024. The reduction is due to lower handling expenses arising from reduction in Dry Bulk cargo volume.}

^{Operating Profit amounted to Rs. 5,775. 77 million during the year under review is marginally high as against Rs. 5,730.53 million for year ended 31 March 2024.}

^{Other Income}

^{Other Income consists of Interest on short-term bank deposits, Gain or Loss from foreign exchange and other Miscellaneous Income. The Other Income was Rs. 810.47 million during the year under review as against Rs. 786.97 million for the year ended 31 March 2024, an increase of 3%.}

^Debt

^{The Company does not have any fund based facility outstanding and it continues to be debt free.}

^{Net Profit}

^{The Companys Net Profit of Rs. 3,984.00 million during the year under review increased by over 13% as against Rs. 3,527.96 million for the year ended 31 March 2024. The increase can be attributed to favourable cargo mix and the cost control measures.}

^{Risk Management and Internal Control}

^{Risk Management and Internal Control are two key aspects of the control framework. The Companys Risk Management Committee is a Subcommittee of the Board of Directors. The Committee is responsible for advising to the Board on high-level risk related matters. The Committee oversees the identification, mitigation and monitoring of the Companys material risks and exposures including the risk pertaining to IT security. Wherever necessary it deep-dives to examine the preparedness of the Company Management in dealing with those Risks. The Risk Management Committee Meetings provide a thorough insight to the Committee as well as to the Management in analysing the identified areas for effective mitigation measures. The Risk Register provides a consistent and measurable management assurance metric on the broad risks involved and its impact on Companys objectives. The Risk Register is reviewed by the Audit Committee and the Minutes of the Risk Committee Meeting are presented to the Audit Committee and to the Board of Directors.}

^{The Audit Committee of the Company has the overall responsibility to provide assurance to the Board about a sound and effective internal control environment in the Company. The Audit Committee reviews the adequacy and integrity of the Companys internal control system. The Company has put in place an internal control framework commensurate to the size of its business and it encompasses both robust internal controls and an efficient, effective internal control monitoring and reporting system. RSM Astute Consulting Pvt Ltd. are the Companys Internal Auditors. The Internal Auditors report directly to the Audit Committee of the Company, and they carry out regular review of the effectiveness of the internal control measures and recommend the areas that require improvement in controls.}

^{The Statutory Auditors have reviewed the adequacy of Internal Financial Controls and have found them in order. The Internal Auditors review on an ongoing basis the Business and Operational Control measures and their adequacy from time to time. Wherever suggested by the Auditors, the improved control measures have been implemented and their functioning is reviewed from time to time.}

^{Health, Safety, Security and Environment (HSSE)}

^{Safety is our most important license to operate. This continues to be a fundamental principle of all ports and terminals within the portfolio of APM Terminals. In accordance with that fundamental principle, the Company is committed to improve Safety performance at its Port on an ongoing basis for its employees and for its business partners functioning inside the port premises. APM Terminals has implemented Global Operational Standards for Safety, a set of Minimum Controls developed to manage the Top five risks identified to be related to 90% of the most serious incidents and fatalities namely, Transportation, Suspended loads & lifting, Working at height, Stored energy, and Control of Contractors.}

^{At APM Terminals, Safety of our Employees and of our Business Partners is of utmost importance. Ensuring that after completion of work everyone returns home safely to be with their families, is of utmost importance. This Safety culture is prevalent with support and close cooperation amongst the employees of the Company and its business partners. A consistent and constant endevour to improvise upon the safety measures with the responsibility starting from the Top to Bottom by conducting Safety Gemba ensures Constant Care and sends a strong signal to all stakeholders about the Companys commitment towards Safety. The Company is committed to ensure Safe and Efficient Operations at Pipavav Port.}

^{Corporate Social Responsibility (CSR)}

^{The Company believes in closely working with the communities in the vicinity to determine their requirements and is accordingly implementing the CSR projects that are acceptable to the community and become self-sustainable over a period of time. That is possible only when a need assessment is carried out before commencement of the CSR project.}

^{The Company has formulated policies for social development that are based on the following guiding principles:}

^{• Adopt an approach that aims at achieving a greater balance between social development and economic development;}

^{• Adopt new measures to accelerate and ensure the basic needs of all people including health and sanitation and working towards elimination of barriers for social inclusion of disadvantaged groups;}

^{• Focus on educating the girl child and the underprivileged by providing appropriate infrastructure, and groom them as future value creators;}

^{• Assist in skill development by providing direction and technical expertise to the vulnerable with special focus on women thereby empowering them towards a dignified and better quality life;}

^{• Promote an inclusive work culture;}

^{• Work towards generating awareness for creating public infrastructure that is barrier free, inclusive and enabling for all including the elderly and the disabled;}

^{• Employee participation is an important part of developing responsible citizenship. Our company encourages and motivates employees to spend time volunteering on issues pertaining to CSR;}

^{• At the time of local or national crisis, to respond to emergency situations & disasters by providing timely help to affected victims and their families.}

^{Our Core Focus Areas are:}

^{• Education}

^{• Health & Environment Sustainability}

^{• Socio Economic Development and Social Business Projects}

^{• Women Empowerment}

^{During the year ended 31 March 2025 some of the key CSR Projects carried out were:}

^{• Mobile Science and Maths lab, supply of educational equipment, teaching learning support, extension activities, adult literacy, up gradation of school infrastructure (sanitation block, indoor and outdoor play facility, library etc) online and distance education, digital education, activity- based teaching, and learning, covid prevention and vaccination awareness etc.}

^{• Medical support to the surrounding villages through advance 24 x 7 life support ambulance, 24 x 7 boat ambulance, mobile health unit, port medical centre, Bimonthly eye check-up camp and cataract surgery, construction of 5 check dams and 37 recharge pits, pond deepening, community tree plantation, kitchen garden, safety & environment, and mental health awareness activities}

^{• Skill & entrepreneurship development followed by placement and formation of Women Self Help Groups followed by income generation activities. Setting up Virtual Reality Centre of Excellence at Gujarat Maritime University and Professional Development of customs agents and related professionals.}

^{• Integrated livestock development, mobile vet clinic, maintenance of RO enabled water vending machines, fisheries as a livelihood, sustainable agriculture development programme and Institution Building: Dhatarwadi Farmers Producer Company, Sagarmitra Fisheries Producer Company, Pashu Uday Charitable Trust etc.}

^{• Installation of CCTV Cameras at the strategic locations in the villages surrounding port Outlook}

^{The world continues to struggle with the ambiguities of tariff war initiated by the US. The multilateral agencies have already reduced the growth rate of all major economies. Unless the countries resolve the matter quickly it could lead to an increase in inflation and recession with adverse impact on the global trade. An adverse impact on India in this globalized economy cannot be completely ruled out but India with its robust domestic economy is likely to be less impacted as compared to several other countries. The tax collections continue to be robust, the interest rates are on decreasing trend and the consumption has been stable. The Government spending on Infrastructure Development continues to be strong. Considering these factors, the Indian economy is less likely to face turbulent times. The generation of jobs by the private sector continues to remain slow and is an area of concern.}

^{Human Resources/ Industrial Relations}

^{Globally, all entities of AP Moller Maersk Group have to undergo an Employee Engagement Survey and all the Employees are encouraged to participate in the Survey. The survey is conducted in complete confidence by an external agency. The findings from those survey are shared with the concerned Manager for discussing those with their respective teams. The idea is to encourage the employees to speak out their mind and try and make each of the entity a better place to work. APM Terminals Pipavav continues to achieve high scores and has maintained its position amongst the Top Quartile. This also is a testimony to a high level of engagement amongst the team members.}

^{The Company has been certified as Great Place to Work for the seventh consecutive year by the Trust Index Employee Survey.}

^{Changes in Key Financial Ratios compared to immediately previous financial year}

^{Pursuant to the requirements under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)(Amendment) Regulations, 2018, the Company is required to provide details of significant changes i.e. change of over 25% or more compared to the previous year, in key financial ratios along with an explanation. The details are as follows:}

^{(i) Debtors Turnover: The Turnover is around 18.76 days for the year under review, a variance of 35.94 %. Except the storage charges for dry bulk cargo, the Company receives its entire billing before the departure of the vessel. The storage income for dry bulk cargo is paid by the customer at the time of evacuation of the cargo, depending upon the number of days cargo has been stored at the Port.}

^{(ii) Inventory Turnover: The Company is engaged in the business of port services. The inventory maintained is for the Companys own consumption such as crane spares, fuel etc. The Company does not maintain any inventory for sale therefore, the Inventory Turnover ratio is not applicable}

^{(iii) Interest Coverage Ratio: The Company is debt free and does not have any obligations towards interest payment. Therefore, the Interest Coverage Ratio is not applicable}

^{(iv) Current Ratio: As mentioned in point no (i) above, the Company receives all its dues before the departure of vessel. The Company does not maintain any inventory for sale since it is engaged into providing port service. The Company does not have any outstanding debt so there is no current portion of long-term debt. Considering these points, the current ratio is about 3.20 for the period under review, a variance of about 5.31%}

^{(v) Debt Equity Ratio: As mentioned in point no (iii) above, the Company is debt free. Therefore, the debt equity ratio is not applicable}

^{(vi) Operating Profit Margin: The Operating Profit Margin for the year ended 31st March 2025 is at 58.5% as against 57.9% compared to the previous year. The increase in Margin of about 100 basis points is mainly on account of lower costs.}

^{(vii) Net Profit Margin: The Net Profit Margin for the year ended 31st March 2025 is at 40.41% as compared to 35.79% for the previous year. The increase in the Margin is mainly due to better cargo mix and lower costs.}

^{(viii) Return on Net Worth: The Return on Net Worth for the year ended 31st March 2025 at 19% is higher by about 2% compared to the previous year due to the reasons mentioned hereinabove.}

^{Cautionary Statement}

^{Certain statements found in the Management Discussion and Analysis may constitute "forward-looking statements" within the meaning of applicable Securities Laws and Regulations. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict, and which may cause our actual results, performance or achievements to be different from any future results, performance and achievements expressed or implied by these statements.}