JSW Infrastructure (JSWINFRA) Q4 18/19 earnings summary

Executive summary

• FY19 cargo throughput rose 20% YoY to 65.20 MT, while consolidated operating revenue increased 9% to ₹10,802.6m; EBITDA and PAT declined.

• Standalone PAT rose 56% to ₹1,109.3m, supported by lower finance costs and higher other income.

Financial highlights

• Consolidated operating revenue was ₹10,802.6m vs ₹9,980.9m; EBITDA ₹7,134.7m vs ₹7,368.0m; PBT ₹2,838.4m vs ₹3,774.8m; PAT ₹2,719.6m vs ₹2,808.1m.

• Standalone total income rose 28% to ₹3,362.5m; EBITDA increased 4% to ₹2,100.6m and PAT increased 56% to ₹1,109.3m.

• Consolidated cash profit increased 11% to ₹5,734.9m from ₹5,178.1m.

• Consolidated operating cash flow was ₹328.0m vs ₹599.9m; investing cash outflow narrowed to ₹494.9m from ₹1,098.4m.

Outlook and guidance

• Targeting total port capacity of 200 MTPA by 2022, from 75 MTPA operational capacity; expansion capital outlay exceeds ₹20bn, funded through loans and internal accruals.

• Jaigarh expansion targets 80 MTPA; Paradip iron ore and East Quay coal terminals target 18 MTPA and 30 MTPA, with scheduled completion in Dec 2019 and Oct 2020, respectively.

• Paradip terminal operations were expected to commence in Q2 FY20; completion and commissioning timelines remained dependent on project execution.

• Management expected scale gains after expansions to support profitability and a comfortable financial profile.