JSW Infrastructure reported a 46% rise in net profit for Q2 FY25, driven by increased cargo volume and an improved revenue mix. The company achieved a net profit of INR 374 crore on revenues of INR 1,088 crore, with EBITDA climbing 22% to INR 607 crore. Total cargo handled surged 16% to 27.5 million tonnes per annum (mtpa), boosted by coal terminals at Mangalore, Paradip, and Ennore, along with contributions from recently acquired ports. The firm also received a letter of intent for a greenfield port in Maharashtra, aiming for an initial capacity of 33 mtpa. With plans to increase capacity to 400 mtpa by FY30, JSW Infrastructure is poised for significant growth in the maritime sector, backed by ongoing expansion projects and strategic initiatives.
JSW Infrastructure has reported a 46 per cent increase in net profit for the second quarter of FY25, with revenue climbing by over a fifth. This growth was primarily driven by a rise in cargo volume and a shift in the realisation mix. The port operator disclosed a net profit of INR 374 crore on revenue of INR 1,088 crore, while EBITDA rose approximately 22 per cent to INR 607 crore. At the end of the quarter, the company had a cash and bank balance of INR 4,501 crore and gross debt amounting to INR 4,414 crore.
The total cargo handled increased by 16 per cent to 27.5 million tonnes per annum (mtpa), with significant contributions from the coal terminals located at Mangalore, Paradip, and Ennore, as well as the recently-acquired ports of PNP and the liquid terminal in the UAE. The proportion of third-party cargo (non-JSW group) during the quarter rose to 46 per cent, up from 36 per cent the previous year. The company also received a letter of intent for the development of a greenfield port at Murbe in Maharashtra, which will have an initial capacity of 33 mtpa. This port is set to be developed over the next four to five years, as mentioned by the outgoing Joint Managing Director and CEO, Arun Maheshwari, who will transition to a new role within the JSW Group. He is to be succeeded by Rinkesh Roy.
The quarter also witnessed a 35 mtpa brownfield expansion at the ports in Jaigarh and Dharamtar. The company has long-term plans to increase its capacity to 400 mtpa by FY30, focusing on participating in privatisation bids and strategic acquisitions. A 7-mtpa dry bulk cargo berth in Thoothukkudi, for which the concession agreement was signed in July, is anticipated to be completed by Q4 FY26. Additionally, two liquid cargo berths with a capacity of 4.5 mtpa are being developed at Jawaharlal Nehru Port and are expected to be finished in early FY26, alongside expansions at the Mangalore container terminal. The two greenfield ports at Jatadhar and Keni are scheduled for completion by 2028 and 2029, respectively.
In conclusion, JSW Infrastructure's strong financial performance and expansion plans position it well for future growth. With ongoing developments and increasing cargo volumes, the company is strategically enhancing its capabilities in the port sector, indicating a promising outlook in the competitive maritime industry.
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