JSW Infrastructure · tone and specificity signals across the available quarters.
Language signals
Had these shutdown not been there, the growth would have been 18%-20%. Just because of the shutdown and third party coming in, which was not there earlier, the growth is 9%, muted to 9%. Had this acquisition not been there, the growth would have been flat.
This is the first step towards that [complete logistics solution provider]. It will, I hope, and I expect, and I wish we will not stop here, and it will further grow from here on. We have to make a start somewhere, and Navkar is the first step towards that.
ROC may go down for few, say, few years to three years, when the CapExes are there and utilization is lower, but we see long-term ROC of 18%-19% will be there.
We still stand by our guidance of 10% for the entire year, and we are seeing very good trends also. The second half is always higher than the first half. So we are fairly confident and the second quarter also starting July itself is showing a good trend.
Jaigarh and Dharmshala together has been operating between 43 million to 46.5-47 million tons every year. This year we are very sure and the guidance is for 46 million plus keeping both together.
Whatever shortfall is there, it will get covered from Q2 onwards. We don't foresee any issue coming from our group cargo perspective.
We have been growing at the rate of 22% CAGR for the last 20 years, and most prominently in the last four years, we have grown at the rate of 40% CAGR.
Based on our strong performance over the previous periods, the credit agency Moody's has upgraded our credit rating from Ba2 to Ba1 with stable outlook.
Container train operator license is a first step towards connecting the end customer directly. The investments are very minuscule, but it's a step which probably will take the company to the next level of servicing to our customers.
We firmly believe that his extensive and deep expertise in port, logistics, and railways will propel JSW Infrastructure to newer heights. This being my last call from here, I wish all of you continued support to Mr. Rinkesh Roy.
We have taken over from twelfth of October, so from there to thirty-first March, it will be counted in our books. Whatever we have thought about Navkar, it looks better than that. So it's better to give a guidance with a clear thought.
Generally, greenfield ports are better in terms of IRR. It's only heavy on CapEx. Because as we do more and more utilization, the IRR keeps on improving, our ROCEs also goes up.
Without these headwinds [Paradip], overall growth would have been closer to 10% on the cargo volumes.
Iron ore prices are now roughly firming up in the market, and the trends that we are observing in October are far better than what we saw in September. At the same time, we are seeing a robust growth at the group level.
These investments and efforts we are making today are poised to deliver significant gains in EBITDA and profitability starting FY 2027-2028.
The company has been assigned an investment grade rating of BBB- from BBB+, with a stable outlook by both S&P Global Ratings and Fitch Ratings. This recognition reflects the strength of our financial fundamentals, discipline, capital management, and resilience of our business models.
In the first year we operated at 40%, second year we operating at 60%. I think in another 2-3 years' time, we should be somewhere around 70%-80%, for sure.
It is purely mix. Because at certain terminals, your revenue per ton is much lower and in the second quarter, the revenue of Jaigarh and Dharamtar were higher. There we have higher revenues, and this time our Mangalore and other terminals were there.
We would be more interested in redeploying the funds into the growth of the company. That would be making much more robust sense for all the stakeholders.
There are hardly any deep sea port, and with this combination of hub-and-spoke model, there are no other ports available. So this will definitely be a great idea to start this business over here now.
Most of our project appraisals that we do are based at a minimum of at least 16%. You can take as a sure shot guidance that it will never be below those numbers.
Our EBITDA margins are slated to go higher because we are going much into our private ports where the EBITDA margins are much higher, 65%-70%. And capacity is being increased from 174-400 million. So even at ₹8,000 crores of, say, port terminal business, which will give 25% of EBITDA, our margin profile of combined margin profile will still increase from the current level.
You have to look at Navkar as a stepping stone into the logistics industry. And from here, the logistics part of the network, the network planning is more important than anything else in logistics. We will be creating the same assets at a much lower cost by leveraging Gati Shakti terminals of the railways in which we don't have to buy the land.
We are targeting a consolidated revenue of INR 5,400 crores and operating EBITDA of INR 2,600 crores for FY2026. Building on this FY2026 base, we anticipate EBITDA growth of approximately 15% in FY2027 and expected to double approximately by FY2028.
The growth, if you see, has mostly come from low EBITDA terminals at JNPT or at Tuticorin. And that is the main reason why you're getting the EBITDA margin is lower. It's not a major lower, but marginally it has reduced.
We are broadly through. We are now totally focused on completion of this project... While the focus is on completing the projects, we will also be participating in the PPP process. And if any good opportunity comes up, we will definitely be bidding for those as well.
We are expecting around INR 30,000 crore of investment in the next six years from 2024-2025 to 2030. So if you want to have a three-year horizon, it would be around INR 14,000 crore.
Year-on-year growth would be a bit of a misnomer if I have to look at it that way. If a long-term sustainable, if I have to look at it, it would be around 15%-17% kind of CAGR. But year-on-year, if I have to talk about immediate next year, probably the guidance would be 10%-12% of growth in terms of volume.
As of March 2024, our net debt is just INR 65 crores, so practically zero net debt and one of the strongest balance sheets in the sector.
We are looking at 10% growth in port volumes, and the revenue in the logistics business, we are looking at around 50% growth.
The 10% guidance is on a conservative basis only, and it is, I know, in no way it will affect with the current tariff issues which are going on. It is a very conservative guidance. I don't foresee any issue in that.
Our plan is by FY 2030, we'll have INR 8,000 crores of revenue with INR 2,000 crores of EBITDA.
Despite these headwinds, we delivered a resilient performance across both ports and logistics. We delivered in line with our operating EBITDA guidance for FY 2026 and continue to maintain our EBITDA guidance for FY 2027 and FY 2028.
INR 30 crore-INR 32 crore is what we would have earned more [without Fujairah disruption]. We did very well in the logistics segment... The addition of new rakes altogether. These have helped to drive up the numbers to INR 2,600.
We have net debt of INR 3,100 crore with a net debt to operating EBITDA of 1.2x and one of the strongest balance sheet in the sector. This coupled with steadily increasing annual cash flows from the current asset base, we are well-positioned to pursue growth plan.