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Informist, Monday, Oct. 28, 2024

--JSW Infra: FY25 volume growth guidance at 10% 

--CONTEXT: JSW Infra management's comments in post-earnings analyst call 

--JSW Infra: Jul-Sept third party revenue INR 4.7 bln, 46% of total 

By Aman Aryan

MUMBAI – Although Jul-Sept is a relatively weak quarter for port operator JSW Infrastructure Ltd., the company reported a stronger performance in the three months ended September. It has also set a 10% guidance for volume growth for 2024-25 (Apr-Mar), the management of the company said in a post-earnings conference call. The company said the proposed expansion of the Dolvi plant in Maharashtra will help grow the volume. The company Monday reported its sales volume for the September quarter at 27.5 million tonnes, up 16% from 23.7 million tonnes a year ago.   

Besides the Dolvi unit, JSW Infrastructure's management believes the under-construction liquefied petroleum gas terminal and the expected export of sugar will also boost the company's volume growth. Sugar export was discontinued last year but is likely to resume this year, the company said. It also plans to increase its overall capacity to 288 million tonnes per annum in FY28 and to 400 million tonnes per annum in FY30, the company said.  

JSW Infrastructure said about INR 4.7 billion of the total revenue of INR 10.11 billion came from third party customers in the September quarter. The share of the volume from third party customers was close to 46% of the company's volume, lower than 50% in the year-ago quarter. The share of the revenue from the third party business will likely be around 50% in FY25 and in the next year, the management said. However, the captive cargo will likely go up depending on JSW Steel's operation. JSW Infrastructure said the third party business terrain for the company is usually lumpy but will likely remain in the 45-50% range.

The company said it has spent about INR 3.83 billion cumulatively on all the projects in the first half of the current financial year and will likely pay around INR 17 billion in the second half of the current financial year as a part of the slurry pipeline acquisition from JSW Steel. It has already paid around INR 10 billion to the promoters of Navkar Corp. Ltd. in September, the company said. JSW Infrastructure has bought 70.37% stake in logistics company Navkar Corp. 

The company is yet to decide the time to reduce its promoter shareholding to 75% from 85.16% at present. "So we have not yet decided about the timing part of it because today we are already sitting on cash," the management said, and added that it will decide on the timeline when the company needs capital or within the regulatory deadline for which "two years are still left".  

The company reported a consolidated net profit of INR 3.72 billion for the September quarter on revenues of INR 10.01 billion. On Monday, shares of the company closed at INR 287.35 on the National Stock Exchange, up 2.2%.  End

Edited by Vandana Hingorani

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