Gujarat Pipavav surges as sequential net profit zooms 340%

The rise in net profit was on account of sharp decline in finance costs during the December quarter

Shares of Gujarat Pipavav were up nearly 6% at Rs 45.35 after the company announced robust performance for the fourth quarter ended December 31, 2012 compared with the previous quarter ended September 30, 2012.

The substantial rise in net profit was attributed to sharp decline in finance costs which stood at Rs 9.75 crore compared with Rs 17.66 crore in the September quarter.

For the fourth quarter the company reported a net profit of Rs 35.98 crore, up 340% compared with Rs 8.17 crore in the third quarter. Total income from operations during the fourth quarter increased to Rs 118.79 crore compared with Rs 94.32 crore in the third quarter.

The company also recorded good performance for the year ended December 31, 2012. Net profit for the year 2012 was up 29.5% at Rs 74 crore compared with net profit of Rs 57.1 crore in 2011. Total income from operations increased to Rs 416 crore from Rs 396 crore last year.

Over 300,000 shares were traded on both the stock exchanges so far.