JSW Infrastructure (JSWINFRA) Q4 16/17 earnings summary

Executive summary

• FY17 consolidated revenue rose 26% to ₹9,464m, EBITDA increased 25% to ₹6,384m and PAT reached ₹3,104m; cargo throughput rose to 36.84 MMT.

• Standalone revenue fell 20% to ₹2,470m and EBITDA declined 26% to ₹1,872m, mainly reflecting a change in Dharamtar’s business model and revenue arrangement.

Financial highlights

• Consolidated PBT increased 44% to ₹3,956m from ₹2,745m; cash profit rose to ₹4,630m from ₹3,842m.

• Consolidated revenue from operations was ₹8,878m; other income was ₹586m, taking total income to ₹9,464m.

• Standalone PAT was ₹565m versus ₹967m; PBT was ₹683m versus ₹1,127m.

• Reported consolidated results included goodwill impairment of ₹704.8m and share-based payment expense of ₹172.0m.

Outlook and guidance

• Targeting 200 MTPA capacity by FY2020 through brownfield and greenfield expansion, third-party cargo, improved connectivity and larger-vessel handling.

• Jaigarh is expanding from 40 to 80 MTPA; Dharamtar’s planned capacity is 34 MTPA, while Paradip projects add 18 MTPA iron-ore and 30 MTPA coal capacity.

• Fujairah’s bulk terminal capacity is expected to increase from 15 MTPA to 24 MTPA; the O&M agreement has a five-year term and is renewable by mutual consent.