 "JSW Infra Q3FY25 results: Net profit grows 31% amid higher cargo volumes")
Sajjan Jindal-led JSW Infrastructure (JSW Infra) on Tuesday reported a 31.6 per cent year-on-year (Y-o-Y) jump in its profit at Rs 329.76 crore for the third quarter of the financial year 2024-25 (Q3FY25), attributable to the owners of the company.
The company’s revenue from operations for the quarter under review grew by 25.71 per cent on the back of higher cargo volumes handled during the quarter and the integration of the recently acquired logistics firm, Navkar Corporation.
The company’s revenue from operations for Q3FY25 stood at Rs 1,181.83 crore, fairly ahead of the Bloomberg estimate of Rs 1,118.50 crore.
The earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased by 20 per cent Y-o-Y, to Rs 670 crore, with a margin of 52.9 per cent.
In Q3FY25, the company handled cargo volumes of 29.4 million tonnes, up 5 per cent, Y-o-Y. The volume increase was driven by the increased capacity utilisation in the coal terminal at Paradip Port in Odisha, contributions from PNP Port in Maharashtra, and a liquid storage terminal in the UAE, the company said.
However, the company said that the growth was partially offset by lower cargo volumes in the iron ore terminal at Paradip as India is witnessing a weakness in iron ore exports. The company’s chief financial officer, Lalit Singhvi, is expecting a recovery in the next quarter.
In Q3FY25, the company’s third-party volume increased by 31 per cent Y-o-Y to be 49 per cent of its total cargo volumes.
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During the quarter, the company enhanced its total capacity to 174 million tonnes per annum (mtpa) from 170 mtpa through capacity enhancements at Mangalore Coal Terminal, PNP Port, and interim operations at a liquid terminal at Jawaharlal Nehru Port Authority (JNPA).
The company aims to expand its total capacity to 400 mtpa by FY30 or earlier with a capital expenditure (capex) plan of Rs 30,000 crore. The expansion will include greenfield, brownfield, and other projects, said Rinkesh Roy, joint managing director and the chief executive officer of the company. Roy also said that the company will be continuously seeking value-accretive inorganic opportunities.
Moreover, the company has increased its total capex guidance to Rs 39,000 crore, with an additional Rs 9,000 crore earmarked for expanding its logistics segment.
The company, through its wholly-owned subsidiary JSW Port Logistics, had acquired a 70.37 per cent stake in Navkar Corporation for Rs 1,012 crore in June 2024. It is targeting a top line of Rs 8,000 crore for its logistics segment by FY30, with a 25 per cent Ebitda margin, said Singhvi.
Additionally, the company’s net debt to Ebitda ratio stands at 0.4x, on a trailing twelve months basis, while its cash and cash equivalents are worth Rs 4,845 crore, as of December 31, 2024. Its net debt stands at around Rs 827 crore.
During the first nine months of FY25 (9MFY25), the company handled a cargo of 85.7 million tonnes. It has set a guidance of 116-117 million tonnes for FY25.
The company’s revenue from operations in 9MFY25 grew 16.5 per cent Y-o-Y to Rs 3,192.96 crore, while the profit attributable to its owners increased 16.9 per cent to Rs 993.71 crore.
Sequentially, the company’s revenue from operations increased by 18.02 per cent, while profit attributable to the owners of the company grew by 11.24 per cent.