The firm had clocked a net profit of Rs 322.2 crore for the April-June period of the preceding 2023-24 financial year.
The company’s total income rose to Rs 1,103.7 crore from Rs 918.2 crore in the year-ago period, while its expenses jumped to Rs 712 crore against Rs 505.7 crore in the same quarter a year ago.
Meanwhile, EBITDA for the quarter rose 24% YoY to Rs 609 crore, while EBITDA margin stood at 55%.
In a separate statement, the company said it handled cargo volumes of 27.8 million tonnes during the quarter, 9% higher over the same period last year. The increase in volume is primarily on the incremental volumes from the acquired assets and increased capacity utilisation at the Paradip Iron Ore and Coal Terminal in Odisha.Should you buy, or sell JSW Infrastructure’s stock? Here’s what analysts say:Motilal Oswal
Motilal Oswal reiterated its ‘Buy’ rating on JSW Infrastructure with a revised target price of Rs 390.
JSW Infra has a robust pipeline for constructing new ports and terminals, with a focus on delivering comprehensive logistics services. The acquisition of Navkar Corporation marks the initial step towards offering pan-India logistics services, including last-mile solutions. The company is pursuing organic and inorganic growth opportunities, thereby bolstering its market footprint.
Volumes in 1QFY25 (from Dharamtar/Jaigarh ports) were hit by the maintenance-related shutdown at JSWINFRA’s Dolvi facility. From 2Q, 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.
“As utilization and volumes continue to ramp up, we expect strong growth to continue. We marginally cut our APAT estimates by 4%/2% for FY25/FY26. We estimate a volume/revenue/EBITDA/APAT CAGR of 15%/22%/26%/28% over FY 24-26,” Motilal said while setting the revised target price of Rs 390.
Kotak Institutional Equities
Kotak Institutional Equities maintained its ‘Sell’ rating on JSW Infrastructure with a target price of Rs 215.
JSW Infra reported broadly in-line 15%/14% revenue/EBITDA YOY growth, with a 6% miss at PAT (30% growth YoY) owing to a higher effective tax rate in the quarter, which is to continue ahead as it utilizes the MAT credit in place and transitions to a new tax regime—expected to increase the tax rate gradually across years by 400 bps from 20.2% in FY2024.
EBITDA margin adjusted for the change in ESOP expense has declined 300 bps YoY, reflecting the effect of changing port mix among other factors (Dolvi shutdown).
“We cut volume estimates by 1% for FY 2025-26 as we incorporate the lower growth for Jaigarh and Dharamtar. We build in a 16%/18%/17% CAGR over the next three years in revenue/EBITDA/PAT. We retain FV at Rs215 on SoTP basis (which factors in the recent announcement of acquisition of Navkar Corp.),” said the brokerage firm.
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