JSW Infrastructure (JSWINFRA) Q1 24/25 earnings summary

Executive summary

• Achieved 9% year-on-year cargo volume growth to 27.8 million tons in Q1 FY25, with third-party cargo share rising to 50% and strong contributions from new assets.

• Acquired a majority stake in Navkar Corporation to expand into inland logistics and last-mile connectivity, with integration expected post Q3 FY25.

• Revenue grew 20% year-on-year to ₹1,104 crore, and EBITDA increased 24% to ₹609 crore; PAT stood at ₹297 crore.

• Maintained guidance of 10%-12% volume growth for FY25, with full-year improvement expected as key facilities resume normal operations.

• Strong balance sheet with net cash of ₹195 crore and cash and bank balance of ₹4,571 crore as of June 30, 2024.

Financial highlights

• Total revenue for Q1 FY25 was ₹1,104 crore, up 20% year-on-year; operational revenue grew 15% to ₹1,010 crore.

• EBITDA margin improved to 55.1% in Q1 FY25 from 51.4% in Q1 FY24.

• Net profit stood at ₹297 crore; adjusted for last year's unrealized forex gain, PAT growth was 14%.

• Other income increased to ₹94 crore, mainly from fixed deposits and mutual fund gains.

• ROCE (TTM) at 18.1% as of June 2024.

Outlook and guidance

• Volume growth guidance for FY25 remains at 10%-12%, with expectations of normalized operations at key ports.

• CapEx guidance for the next year is ₹13,000-14,000 crore, supporting expansion and integration plans.

• Targeting a 2.4x increase in overall capacity by FY30, with a CAGR of ~15% from FY24 to FY27.

• Pipeline includes projects under review and approved, aiming for 400 mtpa capacity by FY30.

• Effective tax rate expected to remain around 24% and may rise slightly before transitioning to a new regime.