JSWINFRA Q2 FY25 earnings call.
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Revenue
₹1,001 Cr
verified against source
Revenue YoY
22%
reported change
EBITDA
₹607 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
JSW Infrastructure delivered a robust Q2 FY25 with cargo volumes of 27.5 MMT (+16% YoY) driven by strong third-party cargo growth of 48% YoY to 12.7 MMT, now comprising 46% of the mix. Revenue grew 22% YoY to INR 1,088 crore with EBITDA up 22% to INR 607 crore, while PAT surged 46% to INR 374 crore. Margins remained stable at ~55.8%. The Board approved INR 2,200 crore brownfield expansion at Jaigarh and Dharamtar ports (adding ~27 MMTPA by March 2027), and the company won a greenfield port bid at Murbe (initial capacity 33 MMTPA). Navkar acquisition closed on October 11 with 70.37% stake. Management guided ~10% volume growth for FY25 and affirmed the 400 MTP capacity target by FY30. Key leadership transition underway with Rinkesh Roy (former IAS, ex-Chairman of major ports) taking over as Joint MD and CEO from November 7. Risks include declining Section 80-IA tax benefits and near-term volume pressure at Goa due to capacity expansion work.
Colored figures show movement against the previous available record.
Guidance to track
- Management maintained volume growth guidance at approximately 10% for FY25, slightly tempered from initial higher expectations due to the planned JSW Steel Dolvi shutdown impact in Q1, which cannot be recouped.
- 288 MTP by FY28 is all under construction with clear timelines. Journey to 400 MTP by FY30 comprises Keni (LOI received, land acquisition underway) and Murbe (LOI received, initial capacity 33 MTP). Any further acquisitions or government terminal bids would be upside over 400 MTP.
- All projects are pursued based on an internal hurdle rate of 16% project IRR. Once 60% utilization is reached, ROCE typically improves to ~18%, with fast ramp-up expected given cargo visibility and anchor customers.
- Q2 effective tax rate of ~32% included one-time items (forex gain remeasurement, non-80-IA income, capital gains tax changes). Going forward, normalized rate expected to be ~25% as 80-IA benefits decline.
Risks flagged
- 80-IA tax holiday benefits are declining as non-qualifying income rises. Combined with one-time items, Q2 effective tax rate spiked to 32%. Management expects normalized ~25% rate, but this represents a structural margin headwind.
- The planned shutdown of JSW Steel's Dolvi Works in Q1 caused volume losses at Jaigarh and Dharamtar ports that cannot be recovered. These captive ports (85-100% dependent on JSW Steel) face near-term headwinds until the steel plant expansion ramps up in FY27.
- Capacity expansion at Goa (8.5 to 15 MMTPA via covered shed construction) requires operational compromises. While performing better than budget, volumes are intentionally lower YoY as the terminal operates concurrently with construction activities.
- Analyst questioned whether these greenfield projects can achieve target IRRs given elevated commodity prices, labor costs, and cost of capital. Management claims 16% IRR hurdle is met but specific numbers deferred to next 1-2 quarters after concession agreements are signed. Keni concession expected in 1-2 quarters; Jatadhar signing expected within November.
Key quotes
- 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.
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