Gujarat Pipavav gains 2% as port services resume

Gujarat Pipavav Port Ltd was trading 2 percent higher in the afternoon trade on June 8, after the company said it had resumed operations after a storm knocked out the power supply on May 29.

Gujarat Pipavav said port operations resumed on June 7 evening with the help of diesel generators after the power supply was knocked out by strong winds and heavy rain that accompanied the storm.

The company had then declared force majeure, a clause that frees up both parties from contractual obligations in the face of extraordinary events which are beyond control such as a natural disaster. A French term, it means great force.

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The restoration work on the uprooted Gujarat Electricity Transmission Company Limited’s transmission towers was still on, the company said, adding as port operations were being conducted through generators and not power supply, force majeure continued.

The storm uprooted the GETCO towers outside the Pipavav port area, disrupting grid supply.

Gujarat Pipavav Port is a private sector port on the southwest coast of Gujarat near Bhavnagar. The company reported a 30.8 percent rise in consolidated net profit at Rs 97.3 crore in the quarter ended March 2023 as against a net profit of Rs 74 crore in Q4FY22. The revenue from operations grew by 6.9 percent to Rs 234.7 crore in Q4FY23 as compared to Rs 219.6 crore in the year-ago period.

At 1.31 pm, the stock was trading at Rs 114.60 on NSE, up 3.20 percent from the previous close.

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