JSW Infrastructure (JSWINFRA) Q2 24/25 earnings summary

Executive summary

• Cargo handled in Q2 FY25 reached 27.5 million tons, up 16% year-over-year, with third-party cargo growing 48% to 12.7 million tons, now comprising 46% of total volume.

• Revenue for the quarter was INR 1,088 crore, a 22% increase year-over-year; EBITDA rose 22% to INR 607 crore, and net profit surged 46% to INR 374 crore.

• Acquisition of a 70.37% stake in Navkar completed in October for INR 1,012.70 crore, with integration underway; greenfield Murbe Port project in Maharashtra awarded, targeting 33 MTPA initial capacity.

• Strong balance sheet with net cash of INR 87 crore and cash & bank balance of INR 4,501 crore as of September 30, 2024.

• Leadership transition announced: Rinkesh Roy to become Joint MD & CEO from November 7, 2024.

Financial highlights

• Q2 FY25 total revenue at INR 1,088 crore, up 22% YoY; EBITDA at INR 607 crore, up 22% YoY; PAT at INR 374 crore, up 46% YoY.

• H1 FY25 total revenue at INR 2,192 crore, up 21% YoY; EBITDA at INR 1,216 crore, up 23% YoY; PAT at INR 670 crore, up 16% YoY.

• Q2 FY25 EBITDA margin at 55.8%; H1 FY25 EBITDA margin at 54.6%.

• Net worth increased to INR 8,449 crore as of September 2024.

• ROCE (TTM) at 18.2% as of September 2024.

Outlook and guidance

• Volume growth guidance for FY25 is 10-12%, slightly tapered due to a planned shutdown at Dolvi.

• Cargo handling capacity targeted to rise from 170 MTPA to 288 MTPA by FY28 and 400 MTPA by FY30, with all major projects on track.

• Multiple projects in pipeline, including Keni Port (30 MTPA), Jatadhar Port (30 MTPA), and a 302km slurry pipeline in Odisha.

• Leveraging balance sheet for value-accretive acquisitions and port-related logistics infrastructure.

• Third-party cargo share expected to remain around 50% in the near term, with captive cargo growth resuming post-2027.