India’s Second largest private commercial port operator engaged in the business of developing, operating, and maintaining port and other infrastructures jumped 3 percent in the day’s trade upon approving capex plans worth Rs. 2,359 Crores.
Price Action
With a market capitalization of Rs. 65,458 Crores, the shares of JSW Infrastructure Limited were trading at Rs. 311.70 per equity share, up 1.51 percent from its previous day’s close price of Rs. 307.05.
What Happened
JSW Infrastructure Limited as part of the company’s FY2030 growth plan to increase capacity to 400 Million Tonnes Per Annum (MTPA) from the existing capacity of 170 MTPA, has approved a capex of Rs. 2,359 Crores for the capacity expansion at its Jaigarh and Dharamtar Port.
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The new capex plan includes mechanical, civil, and electrical work for the new berths and additional infrastructure, such as railway siding for Jaigarh Port, to boost third-party cargo movement. This will increase the overall capacity of Jaigarh Port to 70 MTPA from the current 55 MTPA, and Dharamtar Port to 55 MTPA from the current 34 MTPA.
This expansion primarily aims to cater to the increased cargo volume of the anchor customer on the back of the proposed 5 MTPA steel-making facility at Dolvi, Maharashtra, and the expansion at both ports is expected to generate an additional cargo handling volume of approximately 27 MTPA. Construction at both ports is anticipated to be completed by March 2027.
About the Company
JSW Infrastructure Limited which is part of the famous Indian conglomerate the JSW Group, is the second-largest commercial port operator in India in terms of cargo handling capacity with a Total Operational Capacity of 170 mtpa along with a Diversified presence ensuring good connectivity to industrial hinterlands and mineral-rich belts
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JSW Infrastructure Limited is engaged in the business of developing, operating, and maintaining port infrastructure, port-related services like cargo handling, storage solutions, logistics solutions, development of other types of infrastructure, and so on.
Financials & Ratios
Its Revenue from operations grew by 15 percent YoY from Rs. 878 Crores in Q1FY24 to Rs. 1,010 Crores in Q1FY25, accompanied by profits of Rs. 322 Crores to Rs. 297 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 19 percent and a return on capital employed (ROCE) of 16.4 percent. It has reported a debt-to-equity ratio of 0.59.
Written by: Bharath K.S
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