JSW Infrastructure Limited — Q4 FY26

JSW Infrastructure Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=PqJTZnkmG4s Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the JSW Infrastructure Limited Q4 FY26 earnings conference call 0:09 9 seconds hosted by Motila Los Financial Services Limited. As a reminder, all participant lines will be in the listenonly mode and 0:16 16 seconds there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an 0:24 24 seconds operator by pressing star then zero on your touchstone pole. Please note that this conference is being recorded. 0:32 32 seconds I now hand the conference over to Mr. 0:33 33 seconds Alop DevRa from Motila Los Financial Services. Thank you and over to you sir. 0:39 39 seconds Uh thank you and good evening everyone and welcome to the fourth FI26 earnings conference call of JSW Infra. We have with us today Mr. Linkesh Roy, joint 0:47 47 seconds managing director and CEO, Mr. Lalit Singh, strategic adviser and board member, Mr. Jay Nagarajan, chief financial officer and Mr. Vishesh 0:55 55 seconds Panchanda, hand of investor relations. I would now hand over the court to the management to provide some opening remarks and you can go with the Q&A. Uh thank you and over to to you sir. 1:06 1 minute, 6 seconds Thank you Alok. Uh good evening and thank you all for joining our earnings call for the quarter and year ended 31st March 2026. 1:14 1 minute, 14 seconds Against a backdrop of a more complex global environment shaped by heightened geopolitical tensions in the Middle East 1:22 1 minute, 22 seconds and moderated global growth, India's macro environment continues to remain relatively resilient, supported by 1:29 1 minute, 29 seconds domestic consumption and government spending during the year and in particular during the quarter. We navigated a challenging operating 1:37 1 minute, 37 seconds environment and despite these headwinds delivered a resilient performance across both ports and logistics. Overall on a 1:46 1 minute, 46 seconds consolidated basis our operating revenue was rupees 5361 crores for the year 1:52 1 minute, 52 seconds representing a 20% yon growth. Operating EPIA for the period stood at rupees 2604 2:00 2 minutes crores marking a 15% increase while adjusted net profit reached 164 crores. 2:08 2 minutes, 8 seconds The board has recommended dividend of rupees 0.90 per share which is 45% of 2:15 2 minutes, 15 seconds the face value. Let me now touch upon the operating environment and key developments during the quarter starting 2:22 2 minutes, 22 seconds with the port's business. As previously disclosed, the company's 5 million ton peranom liquid storage facility in 2:30 2 minutes, 30 seconds Fujera oil industrial zone foes located outside the straight of Hu was impacted following damage to certain infrastructure at the storage facility. 2:41 2 minutes, 41 seconds The operating environment in the region remains volatile influenced by heightened geopolitical developments and 2:49 2 minutes, 49 seconds crude oil price movements. We remain closely engaged with local regulators, port authorities and the government who 2:57 2 minutes, 57 seconds have been continuously supporting and guiding us during this turbulent period. 3:01 3 minutes, 1 second Based on our current assessment, operations are expected to progressively normalize in due course. We'll continue 3:09 3 minutes, 9 seconds to keep stakeholders updated on the developments. During the quarter, we achieved several important operational 3:16 3 minutes, 16 seconds milestones. We successfully completed the 4.5 million ton JNPA liquid birth modernization project enhancing our 3:25 3 minutes, 25 seconds liquid cargo handling capabilities at one of India's premier gateway ports. We also expanded cargo handling capacity at 3:33 3 minutes, 33 seconds the Eno coal terminal from 9.6 6 million tons per anom to 11 million tons following receipt of the consent to 3:41 3 minutes, 41 seconds operate the eno coal terminal acquired in November 20 with an installed capacity of 8 million tons and volumes 3:50 3 minutes, 50 seconds of 3.1 million ton in FY21 stands as a compelling illustration of 3:56 3 minutes, 56 seconds our approach to value creation. Since acquisition, we have progressively scaled capacity to 11 million tons perm 4:05 4 minutes, 5 seconds with volumes of 10.4 million tons, reflecting a proven operational excellence in turning around port and 4:13 4 minutes, 13 seconds logistics assets with a clear and unwavering focus on improving returns on capital employed. Earlier in the year, 4:22 4 minutes, 22 seconds we were awarded the SMPA Kolkata container terminal project with a capacity of half a million PUS. 4:30 4 minutes, 30 seconds Following the signing of the concession agreement, we moved swiftly to accelerate our operational readiness and have very recently received approval to 4:39 4 minutes, 39 seconds commence interim operations. This milestone reflects the same execution discipline and operational excellence we 4:46 4 minutes, 46 seconds have consistently demonstrated at GNPA and tutori. The ability to commence revenue generating operations while 4:55 4 minutes, 55 seconds modernization works progress in parallel minimizing time to revenue and maximizing returns on invested capital 5:04 5 minutes, 4 seconds on our ongoing growth projects. The 302 kilometer iron or slurry pipeline continues to progress steadily and 5:12 5 minutes, 12 seconds remains on schedule. To date, 247 kilm of welding and 235 kilm of pipeline 5:20 5 minutes, 20 seconds lowering have been completed, representing appro approximately 82% and 78% completion respectively. 5:29 5 minutes, 29 seconds Strong execution momentum continues with the project on track for completion by March 27. Once operational, the pipeline 5:38 5 minutes, 38 seconds will significantly enhance the efficiency and reliability of irono transportation, reducing dependence on 5:44 5 minutes, 44 seconds road and rail logistics, lowering the cost of irono movement, and delivering a step change improvement in supply chain predictability for our customer. 5:56 5 minutes, 56 seconds Meanwhile, the construction activities at the Jakata port are in full swing with pile foundation work of the birds 6:03 6 minutes, 3 seconds being 80% completed and 7 million cubic meters of bridging being completed with the target of completion of the entire project by March 27. 6:14 6 minutes, 14 seconds A brownfield expansion projects continue to progress steadily. At Jagard port, civil works for birds have been 6:21 6 minutes, 21 seconds completed with dredging currently around 60% complete. At Dharam port, birth construction and related work is progressingly is progressing well. 6:32 6 minutes, 32 seconds Moving on to our logistic business, Navka reported a strong performance underpinned by healthy volume growth 6:39 6 minutes, 39 seconds across segments. For FY26, domestic volumes grew by 40% and exam volumes 6:46 6 minutes, 46 seconds grew by 21% Y on Y, alongside a steady improvement in capacity utilization from 6:53 6 minutes, 53 seconds 44% in FY25 to 56% in FY26, reflecting better asset efficiency and 7:01 7 minutes, 1 second operating leverage. Despite headwinds at the Mori ICD arising from fuel shortages impacting certain customers, Navka 7:10 7 minutes, 10 seconds reported operating EIA of rupees 40 crores in Q4 FY26 while fullear operating EIA stood at 118 7:20 7 minutes, 20 seconds crores versus rupees 8 crores in FY25 representing a 14-fold increase. In Feb 7:28 7 minutes, 28 seconds 26, the company has successfully completed the acquisition of 25 lakes with operations fully integrated 7:36 7 minutes, 36 seconds effective 1st February 26. This acquisition provides immediate access to Indian railways GPWIS and LSFTO schemes 7:46 7 minutes, 46 seconds along with long-term operating licenses under these programs. Since integration, the rail rig business has contributed operating aid of rupees 25 crores. 7:57 7 minutes, 57 seconds Beyond the existing bouquet of 25 newly acquired and 17 container rigs housed under NFKAR, taking the total fleet to 8:06 8 minutes, 6 seconds 42 rakes, we have accelerated the scale up of our logistics platform. In April 26, we placed orders for 40 additional rates, reinforcing our growth momentum. 8:18 8 minutes, 18 seconds This is aligned with a medium-term objective to meaningfully expand our fleet to around 250 rates over the next 8:25 8 minutes, 25 seconds two to three years with a clear focus on asset utilization, returns and earnings visibility. 8:33 8 minutes, 33 seconds We are also pleased to share that the Gautric multimodel cargo terminal at Arupanam, Chennai located entirely on 8:41 8 minutes, 41 seconds railway land which was awarded to us in June 24 for construction and operations has been successfully commissioned and 8:49 8 minutes, 49 seconds has received approval from Indian Railways to commence commercial operations effective April 26. Further 8:57 8 minutes, 57 seconds strengthening our integrated logistics offering, our logistics segment continues to focus on rail centric 9:04 9 minutes, 4 seconds domestic cargo while exim cargo is driven by enhanced capacity utilization across the network. The cumulative capex 9:13 9 minutes, 13 seconds outflow on these projects including acquisition is approximately rupees 6,200 crores. In addition, the company 9:21 9 minutes, 21 seconds has already committed a further rupees 5,300 crores of capex by placing orders for machineries, longlead items and 9:31 9 minutes, 31 seconds other civil works towards ongoing projects across ports and logistics business. 9:39 9 minutes, 39 seconds While our guidance issued in Jan 26 did not factor in developments at the overseas liquid terminal, we delivered 9:47 9 minutes, 47 seconds in line with our operating EITA guidance for FY26 and continue to maintain our EIA guidance for FY27 and FY28 9:57 9 minutes, 57 seconds reflecting the availability of multiple growth levels. These include higher volumes at Goa, Jagard and Paradi, phase 10:06 10 minutes, 6 seconds debottling bottlenecking and caps size coal handling capability at Enor and the accelerated commencement of interim 10:13 10 minutes, 13 seconds operations at the SMP Kulkosa container terminal supported by favorable energy 10:20 10 minutes, 20 seconds sector dynamics including higher thermal coal demand uh in an L nino scenario. 10:27 10 minutes, 27 seconds Hence, consolidated operating EITA is expected to grow by 15% to 3,000 crores in FY27 10:36 10 minutes, 36 seconds and nearly double from the FY26 base to rupees 5,000 crores in FY28 10:44 10 minutes, 44 seconds driven by port capacity additions and sustained EITA contributions from logistics assets. With this, let me hand 10:52 10 minutes, 52 seconds over to Mr. from Mahad Rajan to take you through the financials and other details. 10:57 10 minutes, 57 seconds Thank you RK G and good evening everybody. Let me first talk about our fourth business. In Q4 FI26 the company 11:04 11 minutes, 4 seconds handled cargo volumes of 31.6 million tons as compared to 31.2 million tons in the quarter ended March 25. Volume 11:12 11 minutes, 12 seconds increase was primarily driven by strong performance at southwest port, Dharanta and Jes on the bank of higher volumes of 11:20 11 minutes, 20 seconds anchor customer and was also fueled by start of entering operations at Tutti Corpor and GMP liquid terminal. The growth was largely impacted due to 11:28 11 minutes, 28 seconds ongoing Middle East conflict, lower volumes at Fura facility and cargo deferments at Indian operations driven by the lower availability of vessels and 11:37 11 minutes, 37 seconds higher freight cost. However, the situation has increased from April 26. 11:43 11 minutes, 43 seconds Group cargo has increased from 17 million tons. Group cargo has increased to 16 million 17 million tons from 15.7 million tons representing a 8%age 11:52 11 minutes, 52 seconds growth. Operational revenue for the port segment increased by 12%age during the quarter to 1295 crores compared with 1152 crores in FI25. 12:03 12 minutes, 3 seconds This growth was driven by price adjustments communicated earlier for SWPL Goa NR terminals along with price 12:11 12 minutes, 11 seconds increase at the Mangalore container terminal effective from Jan 26. This happened this announcement or this was 12:19 12 minutes, 19 seconds communicated to us in March 2026 but the effective date was January 26 along with higher ancillary services like storage 12:27 12 minutes, 27 seconds and transportation offered to domestic customers and higher cargo volumes. The improvement was further supported by sharp INR depreciation. 12:36 12 minutes, 36 seconds Operational AIDA for poor segment stood at 705 crores up from 626 crores a jump 12:43 12 minutes, 43 seconds of 13%age. Aida growth was largely driven by increased revenue. Operational Aida margin increased by 10 basis points 12:50 12 minutes, 50 seconds to 54.5 percentage. Talking of NAVAR, it delivered a strong operational financial 12:56 12 minutes, 56 seconds result in Q2 Q4 FY26. Total exam cargo volumes reached 86,000 TUS representing 13:03 13 minutes, 3 seconds a 14% YI growth. Domestic cargo volume stood at 4 lakh 27,000 metric tons up 56% compared to the same period last 13:12 13 minutes, 12 seconds year. Overall capacity utilization stands at 60% for the quarter versus 56% for the whole year. 13:20 13 minutes, 20 seconds Revenue from operations for for Lar rose to 201 crores while operating a data climbed to 40 crores showing substantial 13:28 13 minutes, 28 seconds improvement while net profit increased to 14 cr a significant turnaround from a loss of 19 cr in the previous year. We 13:35 13 minutes, 35 seconds have consolidated newly acquired rail rails in current quarter with effect from fat 26. Consolidated operational 13:42 13 minutes, 42 seconds revenue for the company stood at 1522 crores and the operating agenda stood at 769 crores reflecting a yi growth of 19% and 20% respectively. 13:54 13 minutes, 54 seconds Consolidated depreciation was 158 crores and finance cost was 87 crores in the current quarter as compared to 140 crores and 94 crores respectively in the 14:03 14 minutes, 3 seconds quarter until March 25. Given the changes in the INR and subsequent changes in the yield curve, we have recognized the MTM unrealized loss of 43 14:12 14 minutes, 12 seconds crores. This is essential in non-cash cash and in line with the guidelines of India 109. 14:18 14 minutes, 18 seconds As mentioned by in his opening remarks regarding the damage at Sera facility, we have filed an insurance claim and our 14:26 14 minutes, 26 seconds consultants are positive about the ad admissibility of this claims. However, as a matter of abundant precaution, we have kept a provision of 68 cr in Q4 FI26. 14:37 14 minutes, 37 seconds As a result, adjusted PAT for the current quarter stood at 528 crores, which is 15% Y growth. For 27 and 28, 14:46 14 minutes, 46 seconds the company plans to invest approximately 16,500 crores with a significant portion around 13,000 cr allocated to the post business and 3,500 14:55 14 minutes, 55 seconds crores year mark for the logistic segment. Just to reiterate, our logistic segment guidance remains same which is 15:02 15 minutes, 2 seconds 400 crores Aida in FY27 and 700 crores in F28. However, we have marginally trimmed the revenue numbers to reflect a 15:10 15 minutes, 10 seconds higher EIDA margin in MSF business. Uh we have netted off the freight charges from revenue since it is a pass through. 15:19 15 minutes, 19 seconds As of March 26, we have a net of 3,100 crores with a net to operating a bit of 1.2x 2x and one of the strongest balance 15:27 15 minutes, 27 seconds 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 to 15:35 15 minutes, 35 seconds enhance our present cargo handling capacity to 400 million ton and in parallel grow our logistics business with a top line of 8,000 crores by 2030. 15:44 15 minutes, 44 seconds With this, I request the operator to open the line for 200. just uh uh so shall we proceed with the Q&A? 15:56 15 minutes, 56 seconds Yes. 15:57 15 minutes, 57 seconds All right. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star 16:04 16 minutes, 4 seconds and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to 16:12 16 minutes, 12 seconds please use handsets while asking a question. 16:15 16 minutes, 15 seconds Ladies and gentlemen, we will now wait for a moment while the questions. 16:24 16 minutes, 24 seconds Our first question comes from the line of Ketan Jen from Aventdus Spark. Please go ahead. 16:31 16 minutes, 31 seconds Uh thank you. Uh good evening. Uh so thanks for the efficiency uh uh uh congratulations on a good set of 16:39 16 minutes, 39 seconds numbers. Uh I just wanted to understand uh the driver for uh higher logistics and beta margin uh which we reported this this quarter. 16:50 16 minutes, 50 seconds Would you please come again? 16:52 16 minutes, 52 seconds The drivers for higher logistics a bit margin and higher margin in logistics. 16:59 16 minutes, 59 seconds Okay. As I mentioned this is because of higher capacity utilization at our NAR terminal especially for the whole year the capacity utilization stands at 17:07 17 minutes, 7 seconds 56%age. If you look at FI25 capacity utilization that was around 44%age and for Q4 of FI26 the capacity 17:16 17 minutes, 16 seconds utilization in NA stands at 60%age on top of it we have also as you are aware we have acquired this uh rail 25 rakes 17:24 17 minutes, 24 seconds from our company. So uh that has given an AIDA of around 25 crores. It was in operation for 2 months February and 17:32 17 minutes, 32 seconds March. We have received all delivery of all the 25 rakes and uh we have also guided around 150 crores of Aida for 17:38 17 minutes, 38 seconds FI27 from those 25 rs. All in all this has resulted in enhancement in the AIDA for from the logistics space for Q4 FI26. 17:49 17 minutes, 49 seconds Understood. Uh and on the uh realization front uh uh as you mentioned it was because of uh uh the higher realizations 17:58 17 minutes, 58 seconds in u price increase in Goa and uh Bangalore uh container port. Uh does that drive the 11% increase in 18:07 18 minutes, 7 seconds realizations in the fourth quarter or what is the reason? 18:11 18 minutes, 11 seconds Yes, that is one of the reason apart from that the Hanani onetime income we have booked around 75 crores which is a 18:18 18 minutes, 18 seconds part of the take or pay contract and plus forex fluctuations plus additional storage income we have gotten few of our ports. So all this have 18:27 18 minutes, 27 seconds resulted in the enhancement in the revenue. 18:30 18 minutes, 30 seconds What does this uh uh one time item pertain to? Uh this is not a one time item. This is a recurring one but it comes in Q4. 18:42 18 minutes, 42 seconds What is the nature of this sir? 18:45 18 minutes, 45 seconds This is a I would say minimum takeover pay contract which has been signed with H energy wherein they have they use our 18:52 18 minutes, 52 seconds LPG terminal at understood. Understood. Uh this is the last question. Uh I was just reading a 18:58 18 minutes, 58 seconds media article on uh some findings of environmental committee uh at Dantar port. uh is there any uh findings or any 19:06 19 minutes, 6 seconds takeaway from that or do we have any challenges in our execution? 19:10 19 minutes, 10 seconds So so basically if you see that was a report that there was some spillover dust on the mangroves. So there were two 19:18 19 minutes, 18 seconds issues. One is the number of mangroves planted has been tremendous and that addition has been done. The committee 19:25 19 minutes, 25 seconds only pointed out that please provide a windscreen so that this uh somewhere this uh dust doesn't land on the manus 19:33 19 minutes, 33 seconds that is all and we are complying with all these conditions. 19:39 19 minutes, 39 seconds Uh understood. So no change in the execution timeline right sir? 19:42 19 minutes, 42 seconds No understood. Thanks a lot sir and all the best uh for the next year. 19:51 19 minutes, 51 seconds Thank you. Our next question comes from the line of Priyanka Bismat with GM Financial. Please go ahead. 19:59 19 minutes, 59 seconds Uh sir, thanks for the opportunity for this question and of course congratulations to you that uh despite such a challenging environment I would 20:07 20 minutes, 7 seconds say that this 2,600 crores uh a guidance was made in the first place. Uh so my 20:14 20 minutes, 14 seconds first question is around that only like uh sir if there had been no such let's say link disruptions that had happened 20:22 20 minutes, 22 seconds to you uh so you may have probably ended up at a slightly more higher ed so how much 20:30 20 minutes, 30 seconds higher it could have been and uh also like uh what were the levers that offset the negative impact of pira in this 20:38 20 minutes, 38 seconds particular quarter that's the first question. 20:43 20 minutes, 43 seconds So 30 crores will be the would have been the incremental AIDA. So there are plus a little bit of volume loss in our other 20:51 20 minutes, 51 seconds ports because of r-rooting of or rerooting stroke deferment of cargo. So around 30 to 32 crores is what they would have earned more. 21:02 21 minutes, 2 seconds And how did you observe that? I mean so 33 has uh lost because of this. So what 21:10 21 minutes, 10 seconds were the offsets that you were able to like? Sure. 21:14 21 minutes, 14 seconds So you see we did very well in the uh segment logistic segment where we as he 21:22 21 minutes, 22 seconds had explained earlier there was a tremendous increase in capacity utilization in Q4 and uh the addition of 21:29 21 minutes, 29 seconds new rates altogether. Plus uh what we had also provided additional services in many of our ports like Jag and at Goa. 21:42 21 minutes, 42 seconds So these are helped to drive up the numbers to 2600 also forex fluctuation was there which the spike happened in Q4 21:50 21 minutes, 50 seconds if you see so 16 crores of FX gain we have earned in Q4 21:56 21 minutes, 56 seconds that has also contributed to the Oh, that's very clear. 22:04 22 minutes, 4 seconds uh like uh if I can ask something like uh since uh you have already spelled out let's say your AITA guidance for FI28 22:13 22 minutes, 13 seconds and also indicated what your AITA can be let's say in FI30 like but what I understand is a lot of your projects 22:22 22 minutes, 22 seconds very large projects like let's say Kenya then Oman these are coming on stream towards the very end of FY 30 like 22:29 22 minutes, 29 seconds more like end of FY 29 early 30 So the full effects of this are not really within this horizon. So can you please 22:37 22 minutes, 37 seconds comment like slightly beyond FY30 what kind of growth we should still see continuing from here and based on the 22:45 22 minutes, 45 seconds current project pipeline alone what can be like a steady state aita let's say in the 20 30 to 35 period 22:53 22 minutes, 53 seconds break up your question into two parts and uh where I would like to highlight two things that you would have seen that 23:00 23 minutes all our projects the projects that we had lined up to 28 8 they are all progressing very well and in this period 23:10 23 minutes, 10 seconds between 26 to 28 where we are aiming to go up from 183 to 300 all the projects 23:18 23 minutes, 18 seconds have progressed steadily and the CAGR in you know revenue in this period will be around 42% 23:26 23 minutes, 26 seconds and the CAGR for every would be around 39%. This is the first part I thought I 23:32 23 minutes, 32 seconds would like to clarify. The second part is about the uh coming on stream of 23:38 23 minutes, 38 seconds Kimmy and Oman. So these would be I agree with you it would be the mid 2930 23:47 23 minutes, 47 seconds and uh they are already we have got uh the uh in process for both and Oman will be 23:55 23 minutes, 55 seconds taking up uh after the you know this uh current problems are over and uh post 24:05 24 minutes, 5 seconds 2030 that's what you want to know post 2030 you see plants everywhere are 24:11 24 minutes, 11 seconds getting for expansion. So there we foresee that since we would have created 24:18 24 minutes, 18 seconds the shell for the course you know adding capacity to the new course is a less uh 24:27 24 minutes, 27 seconds uh you know uh takes less effort less capex. So that is where we need other drivers to prove where currently let us 24:36 24 minutes, 36 seconds say Jada is at 33 and when we go into phase two we'll be looking at adding another 20 30 million tons of capacity. 24:44 24 minutes, 44 seconds So that will go up to 60. Similarly Kenny will be going up from 30 to another uh we'll be adding another 30 24:51 24 minutes, 51 seconds million tons of capacity post 2030. So these would be our uh uh create uh you 24:58 24 minutes, 58 seconds know path for growth and what we have also not mentioned here is that the privatization of terminals uh that 25:06 25 minutes, 6 seconds opportunities that are already coming up in major ports. So here we are one of the strongest contenders as you know we are the largest uh holders of 25:15 25 minutes, 15 seconds concessions in major ports. We have 10 such concessions and we'll be further adding on to this. So this would be 25:22 25 minutes, 22 seconds broad 400 plus strategy that we may just ask on it like when you are 25:30 25 minutes, 30 seconds putting let's say a port at a place like uh so like uh where are you going to get the volumes from? So if you can just 25:40 25 minutes, 40 seconds elaborate on that like uh how the volumes would be that we have that's correct. Because if you look at 25:48 25 minutes, 48 seconds it currently the uh steel plant as I mentioned to you everyone is slated for 25:55 25 minutes, 55 seconds expansion. So Vijay Nagaj is slated for expansion from 18 million to 25 million. 26:02 26 minutes, 2 seconds So 7 million into three that is a you know net requirement of another 20 million tons of cargo for the plant is 26:10 26 minutes, 10 seconds going to come up. So these are these drivers and in that entire sector if you look at Kenny the entire Belgari Ospect 26:17 26 minutes, 17 seconds region is slated for more uh capacity addition. So we are very upbeat on that 26:24 26 minutes, 24 seconds uh post 2030 with all the capacity expansions further being lined up including at Jatada at Dolby Vi 26:33 26 minutes, 33 seconds everywhere. So that will be the main drivers for growth. 26:38 26 minutes, 38 seconds Yeah. So would it be fair to conclude that even after 50 when you reach let's 26:44 26 minutes, 44 seconds say 8,000 10,000 400 you would still be able to continue at 26:51 26 minutes, 51 seconds at least 15 20% growth for next let's see it be aware we are looking at 25% CR growth that is 27:00 27 minutes the target that we have set for ourselves. So beyond 2030 we will be continuing to uh expand in our existing 27:09 27 minutes, 9 seconds course that we have created currently and that we'll be pursuing it further. 27:16 27 minutes, 16 seconds Okay that's very clear. 27:21 27 minutes, 21 seconds Thank you. The next question is from the line of Deepak Maria from HSBC. Please go ahead. 27:37 27 minutes, 37 seconds Deepak Moria, your line has been unmuted. You may proceed with your question. The current participant seems to have dropped from the queue. Our next 27:44 27 minutes, 44 seconds participant in the queue for the question is Ron Mukharji from Pic that asset management. Please go ahead with your question. 27:54 27 minutes, 54 seconds Uh thank you for that. uh congratulations to the team for great execution on this quarter. Um just 28:01 28 minutes, 1 second couple of questions and maybe following on from uh the previous participant we spoke about the volumes at Keny volume 28:09 28 minutes, 9 seconds demand uh could we also get some color on the volume demand for jetadhar and if possible sort of uh an idea how this 28:18 28 minutes, 18 seconds splits by captive and third party. Um secondly uh for the Dolby expansion uh 28:25 28 minutes, 25 seconds uh which ports would benefit from uh from the 5 million ton planned expansion apart from Jagger and Tarant. 28:34 28 minutes, 34 seconds Okay. So currently we are Dulvi let me start with DVI. Dolby is getting into uh 28:42 28 minutes, 42 seconds expansion from 10 million to 15 million and in that we are seeing uh growth in 28:48 28 minutes, 48 seconds cargo at Dhanka from 24 to 38 and similarly uh growth in uh cargo at Jiger 28:57 28 minutes, 57 seconds from uh close to 2021 to around 33 34. 29:03 29 minutes, 3 seconds So that would be a net addition of 26 to 27 million ton at both these ports put together. Similarly at Jakataga 29:11 29 minutes, 11 seconds currently the uh entire focus has been more on movement of iron ore and iron or 29:19 29 minutes, 19 seconds pellets. So the initial capacities that have been built up are for movement of these commodities outward from the port. 29:28 29 minutes, 28 seconds With the setting up of the steel plant, we will be adding on another at least 15 million tons of cargo into the steel 29:36 29 minutes, 36 seconds plant because this would be primarily import this for coal and fluxes and that plant is also supposed to scale up uh 29:45 29 minutes, 45 seconds very uh soon. So uh first of all the Jakatagar cargo stream currently would 29:52 29 minutes, 52 seconds be mostly captive but there is a condition that you can handle third party cargo with permission from the uh uh from the maritan board. 30:04 30 minutes, 4 seconds So so that uh permissions as and when we fully develop the infrastructure those 30:11 30 minutes, 11 seconds permissions will be taken. So that is close to 25% of the capacity that is allowed. 30:18 30 minutes, 18 seconds Got it. Got no super clear on on uh on jagger and some just quick follow up on 30:27 30 minutes, 27 seconds jatadhaar just to understand the flow of material. So from the slurry pipeline uh we have that sort of exiting at the 30:35 30 minutes, 35 seconds pellet plants and from there uh that goes to Jatadhar port to be exported to 30:42 30 minutes, 42 seconds uh or sort of come back to our our group companies for 30:50 30 minutes, 50 seconds or for export all three options are uh possible. 30:56 30 minutes, 56 seconds Got it. Got it. uh super and maybe uh one last question from my end. So internally when we look at uh green 31:05 31 minutes, 5 seconds field and uh these brownfield expansions uh how to think about conceptually around say returns oric measures how do 31:14 31 minutes, 14 seconds we approach that? So green field typically project error we look at 16 percentage post tax and obviously good 31:23 31 minutes, 23 seconds error is around 20 to 21 percentage and a brown field obviously the capital cost comes down where the project itself post 31:30 31 minutes, 30 seconds tax comes around 20 to 21 percentage like in case of jagger what we are doing now jagger jarant everywhere the project 31:37 31 minutes, 37 seconds for all these incremental expansions is around 20 to 21% post It's very clear. Thank you so much. 31:50 31 minutes, 50 seconds Thank you. Our next question is from the line of Aritra Banerjee from Nomeira. Please go ahead. 31:58 31 minutes, 58 seconds Yeah, thank you uh sir for taking my question and congratulations for delivering a very good set of numbers. 32:04 32 minutes, 4 seconds So my first question is that on the Navarat front the progress and expansion has been quite impressive. So what is the peak level or sustainable level of 32:12 32 minutes, 12 seconds capacity utilization that we can expect and what is the uh so what is the peak a margin and evita that you would expect from nfka going forward. 32:24 32 minutes, 24 seconds So from Navkar you see in the existing as such we would be looking at further upping it to around uh 75 to 80% 32:34 32 minutes, 34 seconds capacity utilization and the numbers uh because we are also acquiring one or two terminals in this 32:42 32 minutes, 42 seconds uh NFAR company. So the numbers we'll be looking at upwards of 200 CR uh in the next two to three weeks. 32:54 32 minutes, 54 seconds Understood. Uh just one small clarification. So this capacity organization that you mentioned for Napa in this quarter. So would it have been 33:01 33 minutes, 1 second higher by NASA if there were no you know geopolitical disruption uh in this quarter we were to practition 33:10 33 minutes, 10 seconds that was achievable this quarter as the actual effects started coming in 33:18 33 minutes, 18 seconds somewhere in April. It's I would not say for the March quarter there was much of effect. It would have started coming in 33:27 33 minutes, 27 seconds April. In fact was then the first fortnight of April which subsided by second fortnight of April. 33:36 33 minutes, 36 seconds Got it. She got it. And just one last question I think you have mentioned it before but just a little clarification to the break up of the logistics which 33:44 33 minutes, 44 seconds are going into FI 28 of the overall guidance that you have shared. 33:52 33 minutes, 52 seconds So 700 is what we have given. This is primarily it will be a mix of uh revenue from NA from rakes. the 25 rakes which 34:01 34 minutes, 1 second we have plus additional rakes as said 40 rakes order we have already given and we continue we will continue to give orders 34:08 34 minutes, 8 seconds for more rakes plus our uh the 350 terminals and our ICDS will start performing like anam kitini and a few 34:16 34 minutes, 16 seconds more are in the end so that put together we expect uh to achieve a 700 floor aida in F28 34:27 34 minutes, 27 seconds and any color like what would be like the split between lapsar and uh the remaining six assets on this on the floor. 34:35 34 minutes, 35 seconds So, Navka would be around 200 close to 200. The rest would be from assets in JSW Infra and Port and Logistics. These 34:43 34 minutes, 43 seconds two other subsidiaries that predominantly it will be coming from the rake business. 34:56 34 minutes, 56 seconds Uh sir, your line is not clear. You're not audible. She's speaking. 35:07 35 minutes, 7 seconds We are not audible. The participant was asking the question. 35:11 35 minutes, 11 seconds Uh Aritra, have you questioned? All right. Take this question later. 35:17 35 minutes, 17 seconds Sure. Certainly sir. We'll go ahead with the next question which is from the line of Rajas Mitra from Incred. Please go ahead. 35:24 35 minutes, 24 seconds Hello. Um thanks for the opportunity sir. uh how much of your revenue is forex denominated roughly what percentage? 35:33 35 minutes, 33 seconds So F26 it was $84 million we are in dollar denominated revenue 35:43 35 minutes, 43 seconds and and I think you mentioned the number but I didn't get it that the for the FX gain this quarter what is the amount 35:52 35 minutes, 52 seconds 17 cr 17 okay thank you 17 cr okay thank you 36:00 36 minutes that's all thank here. 36:04 36 minutes, 4 seconds Our next question is from the line of Claudia Carpenter with S&P Global. Please go ahead. 36:10 36 minutes, 10 seconds Oh, good. Thank you very much. Can you say if you're going to rebuild at the era and and if so, how long it's going to take? 36:23 36 minutes, 23 seconds Claudia, can you please come again? We could not hear you. 36:28 36 minutes, 28 seconds Can you say if you're going to rebuild at 36:36 36 minutes, 36 seconds uh you see based on our best estimates keeping in view the entire uh security 36:42 36 minutes, 42 seconds issues uh prevailing there we expect approximately 50% of operations to recommencements uh shortly subject to 36:52 36 minutes, 52 seconds normalization of the environment there with the balance uh ramping up in a face manner thereafter 36:59 36 minutes, 59 seconds and uh while we expect the damage was one tank or three times. 37:06 37 minutes, 6 seconds So the to damage to tanks has been three out of a total 15. Uh so 37:13 37 minutes, 13 seconds so are you going to are you going to fix them? Are you going to repair them? 37:17 37 minutes, 17 seconds Yeah, we're going to uh fix them uh shortly, but that can't be done right 37:24 37 minutes, 24 seconds now uh because the situation is not uh conducive to even uh get the repair work done there right now. 37:33 37 minutes, 33 seconds Okay. So, how long will it take to repair situation stabiliz? 37:41 37 minutes, 41 seconds So once uh as I told you once uh we expect approximately 50% of our entire capacity to come on stream uh very 37:50 37 minutes, 50 seconds shortly uh subject to as I told you that things normalize 37:58 37 minutes, 58 seconds but the three tanks were they complete a complete law uh sorry to interrup but you're not your 38:07 38 minutes, 7 seconds line is not very clear. May we request you to please rejoin the queue if if you can establish a better connection. Thank you. 38:16 38 minutes, 16 seconds We will proceed with our next question which will be from Alo Devra from Motila Los Financial Services. Please go ahead. 38:25 38 minutes, 25 seconds Uh good evening. Uh so sir just had a couple of questions. So uh first on the the Middle East disruption. So any 38:33 38 minutes, 33 seconds impact we are also projecting for one Q and any provisions or any impact which we are likely to see in the first quarter if you can highlight on that. 38:44 38 minutes, 44 seconds So first quarter operations are not there. Uh hello. 38:49 38 minutes, 49 seconds Uh no no first quarter I meant uh I mean in the in the coming months I meant. 38:55 38 minutes, 55 seconds Yeah. Yeah. So Q1 most probably by in June we are planning to commence the operations. 39:02 39 minutes, 2 seconds Right. Right. So uh uh and uh so for the first half we should be after the first half we should be kind of stabilizing on that. 39:12 39 minutes, 12 seconds Yes. Barring the three. Barring the Got it. Sure. Sure. And also in the 39:19 39 minutes, 19 seconds capacity expansion we have a Oman plant also which will be Oman unit also which will be coming from 28 onwards uh I mean 39:29 39 minutes, 29 seconds 28 to 30 onwards. So what's the status on that? I mean would it be a call we'll be taking at that point of time or just 39:36 39 minutes, 36 seconds any what's the what's the progress on that? 39:39 39 minutes, 39 seconds Consession agreement is under negotiation. 39:44 39 minutes, 44 seconds Okay. Fourth fourth concession agreement. Yes. Okay. So we are kind of going ahead with that or it could be in the it would depend on how the situation pans out. Any any color on that? 39:57 39 minutes, 57 seconds So actually if you look at it I just wanted to clarify two or three things. 40:02 40 minutes, 2 seconds One is that uh this entire ports that is outside the state of Hamus basically 40:09 40 minutes, 9 seconds Pujera, Deepipa and for Fakan and Oman also the entertain 40:28 40 minutes, 28 seconds in between and uh there we found that the the entire UAE government is now focused on developing these uh ports 40:38 40 minutes, 38 seconds including and I think that would be the same case with uh the government of Oman because they because you don't have to 40:46 40 minutes, 46 seconds cross the hormos to access any oil facilities or uh you know anything 40:52 40 minutes, 52 seconds there. So uh there the governments are you know giving a lot of strategic focus in especially in Fujera they have built 41:00 41 minutes a railway line and now that railway line was the lifeline for the entire uh UI they were able to transport containers 41:10 41 minutes, 10 seconds and everything there. So in future days the ports would acquire a lot of strategic importance and I think uh it's 41:17 41 minutes, 17 seconds a positive uh uh news there and uh The as Nagraan had told you that the 41:25 41 minutes, 25 seconds concession agreement is under discussion there are some conditions precedent. So as and when they get fulfilled and and 41:32 41 minutes, 32 seconds it's a part of a process so we will be looking at it very positively. 41:38 41 minutes, 38 seconds Got it sir. Uh just last question. So in logistics we are forecasting a nearly 25% uh sort of I beta margin and uh in 27 and even 28 kind of similar margins. 41:50 41 minutes, 50 seconds So the margins in this business would kind of be in that range only or as we scale up higher there could be a margin kicker in this business as well. 42:01 42 minutes, 1 second No it should be around in this range only but as we scale up obviously ITDs will start coming in and the ramp up in ITDs again will be gradual the way you 42:08 42 minutes, 8 seconds are seeing in a like 44 56 to 60. So there can be a drop but so it'll be in that zip code of 20 to 25 percentages. 42:19 42 minutes, 19 seconds Got it. Got it. That's all from my side. Thank you. 42:23 42 minutes, 23 seconds Thank you. Our next question comes from the line of Achalar with Noama Institutional Equities. Please go ahead. 42:32 42 minutes, 32 seconds Yeah, good evening sir. Uh thank you for the opportunity. Uh uh two questions. Uh one um you know in terms of uh this Fera 42:42 42 minutes, 42 seconds terminal um uh what is the uh nature of insurance arrangement we have uh you know is there 42:49 42 minutes, 49 seconds just the assets are covered or uh are do we also have the uh insurance for the loss of profit as well? 42:58 42 minutes, 58 seconds Assets are adequately covered. Loss of profit insurance is also there but the region is seeing something like this for the first time or maybe after a very 43:07 43 minutes, 7 seconds long time. So we need to take it with a pinch of salt and that's why we have made this provision also in our books to the dune of 69 crores 43:19 43 minutes, 19 seconds right uh the second question I have uh is with respect to forex gain you said 17 crores of forex gain is that part of 43:26 43 minutes, 26 seconds your uh uh revenue and that's why the realizations are higher just the clarification on that okay yes 43:34 43 minutes, 34 seconds got it and if you could split the uh capeex plan uh like you said uh cumulatively you were looking at selling 43:41 43 minutes, 41 seconds six 16,000 crores if you could uh call out what kind of uh spend we were looking at for FI27 and FI28 and uh 43:51 43 minutes, 51 seconds split in terms of ports if you could yes so ael we have guided 15 and a half strength for the next two years F27 and 43:59 43 minutes, 59 seconds F28 the split as 13,000 for ports and three and a half for logistics 44:07 44 minutes, 7 seconds no I meant within that if you could provide the split in terms of year and also port 44:13 44 minutes, 13 seconds so it will be 40% this year and 60% in F28 44:24 44 minutes, 24 seconds uh fine I'll fall back on for followup thank you thank you our next question is from the 44:32 44 minutes, 32 seconds line of Priyanka Biswas with GM Financial please go ahead Just a a quick follow-up question. Uh so 44:41 44 minutes, 41 seconds can you tell me about uh what were the ESOP expense in FY26 and uh if there are any ESOPs uh there 44:50 44 minutes, 50 seconds we should consider in FI27 23 crores was the F26 ESOP expense. 44:57 44 minutes, 57 seconds These are V63 and F25. 45:00 45 minutes For F27, maybe you can take the same number of around 45:08 45 minutes, 8 seconds maybe you can take around 5 crores. Five crores as also one more thing uh that uh 45:15 45 minutes, 15 seconds given you are significantly uh below your uh net debt to editor guidance. So you typically say that your 45:23 45 minutes, 23 seconds threshold levels at 2.5 broadly is what I can recall. Uh so since you the balance sheet has some 45:31 45 minutes, 31 seconds headroom so are you considering actively any acquisitions or if so in which space 45:39 45 minutes, 39 seconds you may be considering if you are not willing to let's get into details at least the space that you may consider 45:47 45 minutes, 47 seconds acquisitions. We will be looking at in the logistics space because there are obviously this capex spend also we have given. So it will be a mix of both the 45:56 45 minutes, 56 seconds field downfield and MA opportunities plus we will continue to bid for all these terminals which are coming up anyway which are not a part of our 400 46:04 46 minutes, 4 seconds million guidance. So there again the spend can be there. 46:14 46 minutes, 14 seconds Thank you ladies and gentlemen. We will take that as our last question for today. I would now like to hand the conference over to the management for closing comments. 46:24 46 minutes, 24 seconds Thank you. Uh hello. Overall uh we have demonstrated a clear scaling through the 46:31 46 minutes, 31 seconds ongoing port expansion projects, steady progress in the logistics segment and a strong turnaround particularly at Napkar. 46:41 46 minutes, 41 seconds We are encouraged by the increasing integration of our ports and logistics businesses, creating a seamless one-stop 46:48 46 minutes, 48 seconds solution for our customers. This transformation strengthens our integrated platform and positions us 46:55 46 minutes, 55 seconds well to deliver strong earnings compounding over the medium to long term. With this, I wish you all the best. Thank you. 47:05 47 minutes, 5 seconds Thank you. On behalf of Motila Los Financial Services Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines. Thanks.