JSW Infrastructure anchored for robust growth on strong balance sheet

MUMBAI : JSW Infrastructure (JSWIL), the second-largest private port operator is on an expansion drive. It plans to add capacity from the existing 170mnt (million tonnes) to reach 400mnt. The implied compound annual growth rate (CAGR) is 16 per cent over FY24-30. The port operator derives significant volume from group companies (JSW Steel contributed 60 per cent of traffic in H1FY24). It aims to improve third-party volumes to 48 per cent in H1FY25. Acquisition of Navkar Corporation, which operates three CFS (Container Freight Stations) and one Inland Container Depot (ICD), and Sical’s CTO (Combined Transport Operator) licence, and a contract to build and operate GCTs (GatiShakti Cargo Terminal) show aggressive intent to create an integrated logistics value chain.

JSWIL has a strong balance sheet, 0.33x net debt to equity and 0.1x net debt to earnings before interest, taxes, depreciation, and amortisation (Ebitda) in FY24, good cash flows, and the possibility of dilution to meet Sebi requirements (promoter holding is currently 85.6 per cent). This leaves it well-placed to meet the targeted capex of ₹30,000 crore over FY24-30.