jitf infra logistics ltd share price Management discussions

Industry Structure and Developments


Global Economy

The global economic recovery is facing significant headwinds amid new waves of COVID-19 infections, persistent labour market challenges, lingering supply-chain challenges and rising inflationary pressures. Several shocks have hit a world economy already weakened by the pandemic: higher-than-expected inflation worldwide-especially in the United States and major European economies-triggering tighter financial conditions; a worse-than- anticipated slowdown in China, reflecting COVID- 19 outbreaks and lockdowns. The war in Ukraine will further hinder global growth and aggravate inflationary pressures, creating a new negative supply shock for the world economy. After expanding by 5.5 per cent in 2021, the global output is projected to grow by only 4.00 percent in 2022 and 3.5 percent in 2023.

Indian Economy

Just when uncertainties associated with the COVID-19 pandemic were declining, the Russia- Ukraine crisis escalated. Consequently, Indias growth outlook appears to have clouded. Crude oil prices are lingering around US$100 per barrel, and wheat and cereal prices have gone up several times—all of which are critical imports from the two warring nations. India also partly meets its fertilizer needs from the region. For India, which has been battling inflation for a while now, this situation is making matters worse. Higher fuel and fertilizer prices will reduce government revenues and increase subsidy costs. Furthermore, capital outflows and rising import bills will weigh on the current account balance and currency valuation.

Despite the external shocks, we believe that Indias underlying economic fundamentals are strong and despite the short-term turbulence, the impact on the long-term outlook will be marginal. Because of the heightened uncertainties during January—March 2022, due to the surge in Omicron variant and the war, growth projections have been revised down for the entire fiscal year by 45 bps. However, growth will be strong in the next two quarters. Growth-enhancing policies and schemes, increased infrastructure spending, rising exports, rapid digitization, and spill-over effects of geopolitical developments will likely aid in growth.


About us

Your Companys business is to carry out infrastructure businesses through its subsidiaries and step down subsidiaries. The infrastructure businesses include (a) Waste to Energy which is being carried out by various SPVs under JITF Urban Infrastructure Limited; (b) Railway Rolling Stock Manufacturing business being carried out by Jindal Rail Infrastructure Limited and (c) Water and Waste Water EPC business being carried out by JWIL Infra Limited.


The Company has interest in various infrastructure business through its subsidiaries in India and abroad. JITF Infralogistics Limited is the holding company for infrastructure business which is consisting of water infrastructure business, municipal solid waste processing and power generation (infrastructure) business, and rail wagon manufacturing (fabrication) business.

JWIL Infra Limited (JWIL)

The COVID-19 outbreak has been negatively affecting the economy of India. The year 2021-22 has been quite a challenging one for the World, Country, and Indian Economy as well, due to increase in commodity prices across the globe. The Company took swift actions to minimize disruption caused by it and has been able to achieve a turnover of Rs. 789.34 Crores during the year with a growth of about 28 % over previous year. We have also been able to maintain our Profitability with various cost saving initiatives.

The Company is focused on Digitalization of processes along with operational efficiency and has taken various steps to achieve the same such as engaging PWC as consultants for smoothing and improvement of SAP functions etc. Further, the company is the exploring new business line such as Sewage / Wastewater Treatment and new geographical markets such UAE, East Africa etc.

In line of the above, Company has submitted various Bid in the following:

1. Tanzania Project - East Africa - Rs. 650 Crores Approx.

2. Bhandup, Maharashtra (Sewage Treatment Plant) Project - Rs. 1200 Crores approx..

During the year, the company has secured orders worth Rs. 365 Crores in state of Jharkhand to cater the drinking water supply requirement for Rural Population in Godda & Sundarpahari Block.

Existing EPC work to be executed as on year ending March 22 was close to Rs.1600 Crores. As a company JWIL will be doing selective bidding for new projects, based on parameters laid down by the Board in this respect.

The company is targeting to complete four continuing projects during the year 2022-23. Further, company is also doing long term Operations & Maintenance of past executed eleven projects as on today.

Future Outlook and Challenges

Water has been integral part of our life and its market growth has become synergic with growth of country. World Bank forecasted that India could comfortably achieve 7.5% gross domestic product (GDP) growth every year, but not 8.0% unless it implements effective water management strategies.

The Water and Wastewater Market in India stands above USD 2100 Million in 2021 and is projected to grow with CAGR of greater than 8% during the next 5 Years. This growing and expanding water sector market is gaining widespread attention of all the major players to invest and collaborate with sector-based EPC companies. Municipal Water sector market is expected to dominate this forecast and would cover more than 55% of total market size.

Government Agencies are implementing regulatory and funding mechanisms to open up, Water and Waste water Treatment Market for private investments. It is an opportune time for market participants to achieve significant growth as the industry shifts toward deriving more project value-based outcomes (total cost of ownership) and utilizing government expenditure efficiently.

Robust Governmental initiatives, such as, Amrut, Jal Jeevan Mission, National Mission for Clean Ganga Community Drinking

Water Schemes etc. contribute to the growth of the Indian Water and Wastewater Treatment Market. In Indian Budget for the year 2022-23, Finance Minister has increased last year allocation to 150% in Jal Jeevan mission (JJM) totaling Rs. 60,000 Crores for the current year. Most of the State Governments have enhanced their Budget allocations for various Irrigation water schemes.

Over the past few years, the urban sewage capacity in the country has grown significantly. This growing capacity is likely to drive the demand for the application of innovative water treatment technology in the country. The existing collection and treatment infrastructure and facilities contributes to only 44%, which is inadequate to meet the disposal and treatment of growing Sewage generation. Owing to this with rapid Urbanization and development initiatives by government agencies, municipal water and wastewater treatment technologies are likely to dominate the market during the forecast period.

To fulfill our moto of providing sustainable water management and be part of Indias inclusive Growth, the company is exploring opportunities in Sewerage/ Wastewater Treatment, along with strengthening its presence in Water & Irrigation sector with continuous improvement and growth in Sales and Project Management pursuing on cost competitive engineering.

JITF Urban Infrastructure Limited (JUIL)

JITF Urban Infrastructure Ltd. ("JUIL") is in the business of Municipal Solid Waste (MSW) management which includes setting up and operating Waste to Energy projects and material recovery facilities at different locations in the country. JUIL has created a niche in Indian Waste to Energy (WtE) segment with vast experience of successfully operating WtE Plant for more than 11 years in adherence of the emission norms set by the Pollution Control Board. The initial capacity of the WtE plant located in Delhi was 16 MW which was later enhanced to 23 MW. With the enhanced capacity of 23MW, Okhla WtE plant alone has processed approx. 6,32,879 MT of MSW during FY 2021-22 and converted it into greener energy over 166 million units out of which about 142 million units exported to the grid, compost over 538 tons, and recyclables upto 700 tons. On environment indices, this plant, since its inception, has prevented around 100 acres of land (considering Landfill height of 20 Meters) to get converted into Landfill and generation of around 10 million KL of leachate which would have contaminated the ground water by seepage.

JUIL has 7 WtE projects in various stages amounting to a total capacity of approx. 111 MW. Out of them, two projects are located at Guntur and Visakhapatnam in Andhra Pradesh were commissioned in October, 2021 and February, 2022, respectively. Plant at Guntur has been running on full load (15 MW) since 26th April2022. Another project at Tehkhand, Delhi, is in the advance stage of erection and commissioning is expected to by October2022. JUIL will have the capacity of handling around 9000 MT of MSW per day on successful operation of all plants. The performance of all the plants has been remarkably good with plant stabilization, improved efficiency and high PLF since start of its operations.

Future Outlook and Challenges

An increasing urbanisation, population growth, and economic expansion are generating a mounting quantity of solid waste in many developing countries. Solid waste management is one of the critical problems in India. Currently, more than 100 million tonnes of solid waste have generated from various sectors in India. Per capita waste generation varies from 0.2 kg to 0.6 kg depending on household and economic size of the Indian population. Inefficient solid waste collection have an impact on public health and aesthetic of towns and cities in India.

Most of the MSW generated in Indian cities and town is being disposed off in unscientific method, thus creating serious problems of environmental degradation, and adverse impacts on all components of the environment and human health. In 2020, MNRE had announced Central Financial Assistance Scheme for Waste to Energy projects providing subsidy of Rs. 5 crores per MW capacity of the project subject to maximum subsidy of Rs. 50 crores per project. Further, many Urban Local Bodies are providing viability gap funding for establishment of WtE projects.

The national and state governments have provided an impetus to improve the solid waste management in urban areas under various schemes and programmes. Several cities in India have taken positive steps towards implementing sustainable waste management practices.

Increased environmental awareness regarding renewable waste management systems among people and rise in CO2 emissions, globally are expected to generate growth opportunities for the waste management market. Ministry of Urban Development, nodal agency for Swachh Bharat Mission also recognized WtE projects as a viable option.

JUIL is currently operating a WtE plant of 23 MW in Delhi and two 15 MW plant in Guntur and Visakhapatnam through SPVs and has 4 more projects under various stages of construction and planning which put together will have a total capacity approx 111 MW. One project at Tehkhand, Delhi is expected to be commissioned during this year. All the commissioned projects will generate a healthy revenue stream for the Company.

Based on above, the management believes in healthy outlook for future growth of JUIL.

Jindal Rail Infrastructure Limited (JRIL)

Railway Industry offers significant long-term growth opportunities. Demand for freight wagons both from Indian Railways and Private Sector clients is increasing driven by robust growth in Railway sector. JRIL will benefit from favorable outlook of wagon industry as growing demand for wagons will increase companys capacity utilization, support its operating profitability, and enhance its competitive positioning.

JRIL has achieved a total turnover of Rs. 257.77 crore during the year. JRIL manufactured 790 wagons comprising of BFNV, BOXNHL, BCFCM, BVCM and Gondola types of wagons. JRIL exported 13 wagons during the year.

The Company has strong pipeline of wagon orders from the Private Sector customers which provides clear revenue visibility for FY 2023 and beyond. JRIL has gained extensive experience in manufacturing almost all major types of freight wagons over last decade and is well positioned to leverage its established position in wagon manufacturing industry and capture significant share of this growing market.

Future Outlook and Challenges

Global demand for transport is growing fast. Given present trends, passenger and freight activity will more than double by year 2050. Such growth is a token of social and economic progress. The transport sector is responsible for more than half of global oil demand and around one-quarter of global Co2 emissions from fuel combustion where rail is among the most energy efficient modes of transport for freight and passengers.

The Indian Government is undertaking several initiatives to upgrade its aging railway infrastructure and enhance its quality of service. The Railway Ministry has announced plans to invest Rs. 5,400,000 crore (US$680 billion) to upgrade the railways by year 2030. Dedicated Freight Corridor Corporation of India (DFCCI) is the agency undertaking development of freight corridors around the country. Indian Railway will convert 10,000 km passenger and freight trunk routes in to High-speed rail corridors of India over 10 years with total investment of Rs.20 lakh crore (equivalent to US$300 billion in 2020) and annual investment of Rs.2 lakh crore (equivalent to US$30 billion in 2020) from year 2017 to 2027. Dedicated freight corridors of 3,300 km length will also be completed thus freeing the dual use high demand trunk routes for running more high-speed passenger trains.

The next 10 years will see a very high level of capital expenditure in the railway sector as capacity growth has to be accelerated, so that by year 2030 it is ahead of demand, as per the Economic Survey.

The National Rail Plan lays down the road map for capacity expansion of the railway network by year 2030 to cater to growth up to year 2050. It envisages the creation of a future ready railway system that is able to not only meet the passenger demand but also increase the modal share of railways in freight to 40-45 per cent from the present level of 26-27 per cent. The National Rail Plan provides a pipeline of projects, which on completion will increase railway capacity to capture 45 per cent of freight traffic.

The government has in the past few years focused on boosting infrastructure and over the next few years, Indian Railways is expected to come out with large contracts to upgrade both passenger wagons and freight wagons. The private sector is also expected to start operating trains soon.

After struggling with COVID-19 effects in the past two years, Indias railway wagon industry is on the verge of a breakthrough and is likely to grow multi-fold in the next few years.

Over last decade, JRIL has gained extensive experience in manufacturing almost all major types of freight wagons in India. The Company is focused on innovation in design and development of new design wagons - BFNV type wagon which was jointly developed by Ministry of Railways Research Designs & Standards Organization (RDSO) and JRIL has been successfully inducted into service over Indian Railway network. Development of more such new design wagons is under discussions with several clients.

Geopolitical conflict in Europe has added risks and uncertainties for global economy. Wagon Industry is witnessing volatility in prices of raw material and facing the prospect macroeconomic instability and supply chain issues. The Management is in discussions with all stakeholders to mitigate emerging challenges and foresees demand for wagons to remain strong in coming years.

The Company is optimistic about medium-to-long term business prospects and intends to maintain a healthy order book in nearterm. Discussions are in advanced stages with several clients for future orders.

The management foresees a healthy business outlook for future growth of the Company.


India was gearing up for a strong economic recovery, several forecasters such as the International Monetary Fund expected growth to exceed 9% this fiscal. This optimism received a jolt this year with wave of Omicron infections and then Russia - Ukraine conflict. These events aggravated the pre-existing challenges such as surging inflation, supply shortages, and shifting geopolitical realities across the world with no definite end in sight. And the subsequent confluence of headwinds such as surging commodity prices and disruption in trade and financial transactions quickly deteriorated economic fundamentals that were trending up a few months back.

However, we believe the risks are not strong enough to deny India an economic rebound given the domestic demand potential. India being primarily a domestic demand-driven economy, it is expected that India will grow by 7.1%-7.6% in FY 22-23 and 6%- 6.7% in FY 23-24. This will ensure that India reigns as the worlds fastest-growing economy over the next few years, driving world growth even as several major economies brace themselves for a slowdown or possibly a recession.

The governments capital spending share is going up while Indias gross tax collection has beaten all expectations. The tax buoyancy and the simplified tax regime with low rates are likely to support further capital spending in the future.

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling Indias overall development. The infrastructure sector has become the biggest focus area for the Government of India. The Gati Shakti National Masterplan continues to be center stage with respect to the efforts augmenting national infrastructure. Given the huge thrust on infrastructure as a sector that has one of the highest multiplier effects on the economy, one can hope that the initiatives taken by the government will revive the infrastructure sector.

The Company is engaged in the Infrastructure Business having operating companies in various verticals comprising of Water, Environment, Solid Waste Management and Rail Infrastructure. We have emerged as a leading operator in the field of water and urban waste management sector based on the strengths and advantages that we enjoy in the market place. JWIL is exploring opportunities in Sewerage/ Wastewater Treatment, along with strengthening its presence in Water & Irrigation sector with continuous improvement and growth in Sales and Project Management pursuing on cost competitive engineering. Railway sector in India offers significant long-term growth opportunities. Over last decade, JRIL has gained extensive experience in manufacturing almost all major types of freight wagons in India. With the diversified business portfolio, it has managed to mitigate the business risk to its optimum low level. JUIL is currently operating a WtE plant of 23MW in Delhi and two 15 MW plant in Guntur and Visakhapatnam through SPVs and has 4 more projects under various stages of construction and planning. One project at Tehkhand, Delhi is expected to be commissioned during this year. All the commissioned project will contribute to the financial health of the company significantly.

In the present scenario, the management is optimistic that with the strong leadership at the Centre with a vision of Vibrant India, the overall future outlook of the infrastructure sector in India looks bright and Company expects more opportunities to come its way to maintain healthy order book in the coming years and is confident that the financial performance of the Company shall continue to improve.

We believe we are uniquely placed to compete in the market place and deliver a sustainably commendable performance while keeping risks pertaining to market concentration and industry dynamics in check.


Every business carried out by any Company are full of challenges and risk and the success of any business always depend upon the ability of the Company how it faces the challenges and survive in the highly competitive market. Your Company is developing various systems and strategies to face the challenges in the competitive market. The challenges are not from the competitors but also from the domestic and global economic scenario. Your Company is taking all precautions to offset the associated risks.


The Company is moving forward with the new normal by adopting integrated systems within this vulnerable environment with resilience and valour. The safety of our employees is of prime importance and for the same several measures have been taken by the company to combat this virus like thorough sanitization of the complete premises multiple times in a day, installation of sanitization tunnels, setting up of isolation wards, consultation with healthcare professionals, online COVID related sessions etc. The Management understands that many employees are going through an emotional turmoil during this period, therefore, the senior leadership ensures to keep a continuous track on the mental and physical wellbeing of the employees and their families. The company has extended every possible assistance to the employees who have been affected during this adversity.


Risk Management is a process of identifying the risks, analysis of its effect on the business operations of the Company, measures to be taken to mitigate such risks. As a business enterprise the Company is exposed to various risk some of which are identifiable and can be mitigated through defined Internal Control Mechanism. However there are certain risks which cannot be predicated and are unascertainable at a given point of time. These can be mitigated through the experience inherited by the Company and its management over the period. The Company has set up an elaborate system for identifying and mitigating the risk associated with the nature of businesses undertaken by the Company which may threaten the existence of the Company. At senior management level roles and responsibilities of all the employees are well defined to facilitate timely identification and mitigation & management of the risks. We work in an environment where risks to the business and operations are evaluated regularly and suitable necessary steps are initiated by the Management to mitigate and alleviate such risks to the best possible way.


During the Financial Year, Company achieved Gross Revenue of Rs. 276.71 lacs against Rs. 259.57 lacs achieved during the previous year. The net profit for the Financial Year is Rs. 19.14 lacs as compared to Rs. 16.93 lacs in the previous year.


Your Company has put in place strong internal control systems in line with globally accepted practices. The processes adopted by the Company are best in class and commensurate with the size and nature of operations. All major business activities have been well defined and mapped into the ERP system and the controls are continuously reviewed and strengthened as per the business need.

The Company has adopted risk based framework which is intended for proper mitigation of risks. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuous basis.

Our Internal Audit department comprises of in-house Internal Auditors who are professionally qualified. They routinely and regularly carry out the internal audits to review the adequacy and compliance to the laid down procedures to manage key risks.

The Audit Committee of the Board regularly reviews the adequacy & effectiveness of internal audit environment and implementation of internal audit recommendations including those relating to strengthening of Companys risk management policies & systems.

We follow the highest standards of ethics. There is a functional Whistle Blower policy whereby anyone can report any act which is not in line with the policy, our code of conduct and overall ethics. There is a designated authority in place to monitor reported cases and to oversee redressal.

Your Companys philosophy is of zero tolerance towards all applicable legal non-compliances.


The importance of Human Resource has increased with the passing year. We continuously emphasize on strengthening employee-employer relationship by formulating effective strategies and improvising functional processes vital to achieve the Organizational goals. Recruitment and retention of human resources is always a challenge in the growing business organizations. The business as of now involves a limited number of professionals, however, with growing business needs, your Company may be required to hire the additional talent pool of requisite experience and qualifications.


The Statement in this Management Discussion and Analysis report, describing the Companys outlook, projections, estimates, expectations or predictions may be "Forward looking Statements" within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied.