Ind-Ra assigns JSW Shipping & Logistics A-plus with stable outlook

MUMBAI : India Ratings and Research (Ind-Ra) has assigned JSW Shipping and Logistics Pvt Ltd (JSLPL) a long-term issuer rating of A-plus with stable outlook.

JSLPL’s two-member board wholly comprises representatives from the JSW Group. Also, JSLPL’s senior management team has been drawn from JSW Group companies.

Ind-Ra expects the JSW Group to monitor JSLPL’s operations and financial position closely (including the treasury functions).

JSLPL started operations in January and FY22 will be the first full year of operations for the firm. The total project cost (the purchase price for 14 mini bulk carriers) is Rs 1,024 crore.

A total of five mini bulk carriers are operational as of now and the rest will be operational by 3Q FY22. The company has availed a disbursement of Rs 334 crore against seven mini bulk carriers.

According to the provisional financials for FY21, JSLPL achieved a revenue of Rs 14.5 crore with an operating margin of 60 per cent.

Overall, Ind-Ra views JSLPL to be operationally integral to the JSW Group, given the critical nature of services provided to JSWL, the flagship company in the group.

Source : mint