Shares of this infrastructure stock engaged in providing maritime-related services surged nearly 5 percent to Rs.352.85 per share on receiving delivery of 2nd dredger from the Netherlands to support its expansion plans.
Share Price Movement
In Monday’s trading session, shares of JSW Infrastructure Limited surged 5 percent to an intra-day high of Rs.352.85 per share, from its previous close of Rs.336.1 apiece. Over the past year, the stock has provided returns exceeding 120 percent.
Rationale for the Rise
JSW Infrastructure, part of the JSW Group and India’s second-largest private commercial port operator, has received a new, state-of-the-art dredger from Netherlands-based IHC Dredging, as stated in a stock exchange filing.
“This investment into the second dredger aligns with the company’s FY2030 growth plan to boost capacity from 170 Million Tonnes Per Annum (MTPA) to 400 MTPA. The new dredger will support both greenfield and brownfield expansion projects at multiple ports of the company,” it said.
JSW Infrastructure currently operates ten port concessions strategically positioned along India’s west and east coasts. Internationally, it manages a liquid tank storage terminal with a capacity of 4,65,000 cubic meters in Fujairah, UAE.
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The company’s ports and terminals can accommodate a variety of cargo and vessels, including those up to Cape size. It highlighted that its highly mechanized cargo handling system allows for quick turnaround times while optimizing the use of available resources.
Capacity Enhancement
JSW Infrastructure’s total operational capacity stands at 170 million tonnes per annum (MTPA), with an additional 11.5 MTPA under concession agreements for terminals.
The company plans to increase its overall capacity by 2.4 times, aligning with its growth strategy to expand both domestically and internationally.
The estimated capital expenditure (capex) for the project is Rs.4,119 crore, with an initial capacity of 30 million tonnes per annum (mtpa).
Sector Expansion
India’s port capacity is set to quadruple to 10,000 mtpa by 2047. Maritime India Vision 2030 highlights key areas like brownfield expansion, mega port development, a transshipment hub in southern India, and infrastructure modernization.
The adoption of the landlord model offers significant opportunities for private terminal operators, with the current capacity of 12 major ports at about 1,534 mtpa.
Financials
In its recent financial updates, JSW Infrastructure Ltd reported revenue of Rs.1,010 crore in Q1FY25, marking a 15 percent growth from Rs.878 crore in Q1FY24. However, the company’s net profit fell to Rs.297 crore from Rs.322 crore in the same period, reflecting a 10 percent increase.
Company Profile
JSW Infrastructure, part of the JSW Group, ranks as India’s second-largest commercial port operator by cargo handling capacity. The company also manages two port terminals in the UAE under O&M agreements, with a combined cargo handling capacity of 41 MTPA.
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Written by – Siddesh S Raskar
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