JSW Group stock engaged in the business of developing, operating, and maintaining port and other infrastructures jumped 4 percent in the day’s trade upon receiving a new work order from Southern Railways.
Price Action
With a market capitalization of Rs. 69,804 Crores, the shares of JSW Infrastructure Limited were trading at Rs. 332.40 per equity share, up 4.18 percent from its previous day’s close price of Rs. 319.05.
What happened
JSW Infrastructure Limited has received a Letter of Acceptance (LOA) from Southern Railway, Chennai division, for the Construction & Operation of the Gati Shakti Multi-Modal Cargo Terminal (GCT) Entirely on Railway Land at Arakkonam, Chennai, Tamil Nadu.
JSW Infrastructure Limited shall commence construction within three months of the grant of approval of construction, and complete construction within eighteen months of the grant of approval for the construction of the Gati Shakti Multi-Modal Cargo Terminal and the Railway land required shall be licensed for 35 years.
In addition, JSW Port Logistics Private Limited a wholly-owned subsidiary of the company has agreed to acquire 70.37 percent shareholding held by Promoters and Promoter Group in Navkar Corporation Limited.
Navkar Corporation Limited’s key operating facilities are One Container Freight Station (CFS) and Gati Shakti Cargo Terminal at Somathane, Pavnel and Two CFS at Ajivali, Panvel, and An Inland Container Depot (ICD) at Morbi, Gujarat. The ICD is part of the Multimodal Logistics Park (MMLP).
JSW Infrastructure Limited has also fixed July 19, 2024, as the record date for the purpose of determining the eligible shareholders for the payment of dividend on the Equity Shares of Rs. 2.
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
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.
Its cargo handle mix as of Q4FY24 is as follows, the third-party cargo consists of 46 percent and the remaining 54 percent of cargo handled is of the JSW Group.
Financials and Ratios
Its Revenue from operations grew by 19.78 percent from Rs. 915.3 Crores in Q4FY23 to Rs. 1,096.38 Crores in Q4FY24, accompanied by profits of Rs. 302.26 Crores to Rs. 329.08 Crores.
In terms of Return ratios, it has delivered a return on equity (ROE) of 19.2 percent and a return on capital employed (ROCE) of 16.6 percent. It has reported a debt-to-equity ratio of 0.59.
Written by: Bharath K.S
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