JSW Infra Q1 Review - Revenue Inline With A Slight Miss On Earnings; Outlook Remains Bright: Motilal Oswal

Motilal Oswal Report

JSW Infrastructure Ltd. posted 15% YoY revenue growth to Rs 10.1 billion (in line) in Q1 FY25. Cargo volumes rose 9% YoY to 27.8 million metric tonne, of which thirdparty cargo grew 48% YoY to 13.8 mmt (50% of the total cargo in Q1 FY25 was from third parties). The volume growth was primarily led by incremental volumes from the acquired assets and improved capacity utilization at the Paradip iron ore and coal terminal.

Ebitda margin dipped ~40 basis points YoY/~200 bp QoQ to 51.0% (versus our estimate of 53.8%). Enbitda grew ~14% YoY to Rs 5.1 billion (8% below estimate). Ebitda growth was hit by higher operating expenses. Adjusted profit after tax rose 17% YoY to Rs 3.0 billion (our estimate of Rs 3.3 billion). Cash and bank balance was Rs 45.7 billion at end-Q1.

Volumes in Q1 FY25 (from Dharamtar/Jaigarh ports) were hit by the maintenance-related shutdown at JSW Infra’s Dolvi facility. From Q2, these ports would clock normalized volumes as the shutdown is now behind. Hence, the overall volume growth guidance for FY25 is unchanged.

Margins would improve as these ports generate higher margins than most other ports.

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