JSW Infrastructure Reports Strong Q1 FY2025 with Volume and Profit Growth

JSW Infrastructure Limited, a leading Indian private port operator, delivered impressive results for the first quarter of FY2025 (Q1 ended June 30, 2024).

Key Highlights:

Cargo Volume Growth: JSW Infrastructure handled 27.8 million tonnes of cargo, representing a 9% increase year-on-year. This growth is attributed to:

• Acquired assets contributing incremental volumes.
• Increased capacity utilisation at the Paradip Iron Ore and Coal Terminal.

Third-Party Business Strength: Third-party cargo volume witnessed a significant 48% YoY growth, reaching 13.8 million tonnes. Consequently, the share of third-party cargo in the overall volume climbed to 50% compared to 37% a year ago, reflecting a more diversified client base.

Financial Performance: The company’s strong operational performance translated to:

• 20% YoY growth in total revenue, reaching ₹1,104 crore.
• 24% YoY growth in EBITDA to ₹609 crore, with a healthy margin of 55.1%.
• Profit after Tax (PAT) of ₹297 crore.

Strategic Acquisitions and Expansion Plans

Navkar Corporation Acquisition: JSW Infrastructure acquired a 70.37% stake in Navkar Corporation Limited, a move that marks the company’s foray into logistics and value-added services. This strategic acquisition will enable JSW Infrastructure to offer:

• Improved port connectivity for customers.
• Streamlined supply chain solutions.

Gati Shakti Cargo Terminal Project: JSW Infrastructure secured a contract for constructing and operating a Gati Shakti Multi-Modal Cargo Terminal (GCT) at Arakkonam, Chennai. This project aligns with the company’s vision of establishing a pan-India logistics network for last-mile connectivity.

• Construction timeline: 18 months.
• Estimated capex: ₹150 crore.
• Strategic location with excellent rail and road connectivity, offering proximity to the port.

JSW Infra signed a concession agreement with V.O. Chidambaranar Port, Tamil Nadu, to develop a new 7 MPTA Cargo Berth. JSW Infra will leverage its operational capabilities of handling bulk products and increase its cargo share on the East Coast. The asset provides access to the rich hinterland with a diverse cargo profile, including dry bulk, coal, limestone, gypsum, rock phosphate & copper concentrate.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.