JSW Infrastructure Posts Strong Q3 Results Driven by Volume Growth and Operating Leverage

Mumbai-based JSW Infrastructure Limited announced robust third quarter results for the period ending December 31st, 2023, driven by healthy cargo volume growth, operating leverage, and strategic expansion.

Cargo volumes handled grew 17% year-over-year to 28.1 million metric tonnes in Q3 FY2024. Higher utilization rates at Paradip Iron Ore Terminal, Paradip Coal Terminal, and Mangalore Coal Terminal contributed to volume growth. The Mangalore Container Terminal saw cargo volume expand 33% versus last year, with third-party volume rising 47%.

Higher volumes translated into a 21% increase in consolidated revenue to Rs. 1,018 crore. Thanks to operating leverage and cost control efforts, EBITDA jumped 33% to Rs. 558 crore while EBITDA margin held firm at 54.8%. On the bottom line, net profit after tax more than doubled to Rs. 254 crore.

The company maintained a robust balance sheet to fund future growth, ending Q3 with a net debt to EBITDA ratio of just 0.31x and cash & cash equivalents of Rs. 3,764 crore.

During the quarter, JSW Infrastructure received key approvals to expand cargo handling capacity. Environmental clearance was granted to boost capacity at the Ennore Coal Terminal by 1.6 million metric tonnes per annum. The company also won a bid to develop a 30 million tonne per annum greenfield port at Keni, Karnataka entailing Rs. 4,119 crore in capital expenditure.

Expanding its footprint, JSW Infrastructure acquired a majority stake in PNP Maritime Services which operates a 5 million tonne per annum port in Maharashtra. The acquisition of a 5 million tonne per year liquid storage terminal in Fujairah, UAE was also completed. With new projects and M&A, JSW Infrastructure grew its cargo handling capacity to 170 million metric tonnes per annum.

The strong results showcase JSW Infrastructure firing on all cylinders – handling higher cargo volumes, boosting capacity, making strategic acquisitions, and delivering significantly higher profitability. With operating leverage benefits and a robust balance sheet, the company seems well-positioned to continue its growth trajectory. The expansion of both port infrastructure and cargo mix enables JSW Infrastructure to capitalize on India’s growing EXIM trade.