JSW Infrastructure reports 8% profit dip in Q1

19 Jul 2024 , 12:24 PM

JSW Infrastructure reported a decline in consolidated net profit by nearly 8% for the June 2024 quarter, reaching ₹296.55 Crore. This marks a decrease from the ₹322.20 Crore net profit recorded during the same period in the previous financial year. The company’s financial performance was impacted primarily by higher expenses, as detailed in a recent regulatory filing.

At the time of writing on July 19, 2024 at 12:14 pm shares of JSW Infrastructure is  currently trading at ₹315.50 which is a 6.13% dip than the previous close. The stock has gained a total of 100% in the last one year, and 49% since the beginning of the year.

Total income for JSW Infrastructure increased to ₹1,103.69 Crore in the June 2024 quarter, compared to ₹918.24 Crore in the year-ago period. Despite the rise in income, the company’s expenses saw a significant jump, reaching ₹712.05 Crore, up from ₹505.75 Crore during the corresponding quarter of the previous year. This increase in expenses contributed to the overall decline in net profit.

In terms of operational performance, JSW Infrastructure handled 27.8 million tonnes of cargo during the quarter, representing a 9% increase over the same period last year. This growth in cargo volumes is primarily attributed to incremental volumes from newly acquired assets and enhanced capacity utilization at the Paradip Iron Ore and Coal Terminal located in Odisha.

During the June quarter, JSW Infrastructure also acquired a majority stake of 70.37% in Navkar Corporation. This acquisition was made through its wholly-owned subsidiary, JSW Port Logistics Pvt Ltd, at an enterprise value of ₹1,644 Crore. This strategic acquisition is expected to contribute to the company’s future growth and expansion plans.

JSW Infrastructure is a prominent player in the port operations sector, being the second-largest private commercial port operator in India. It is part of the JSW Group, a diversified Indian multinational conglomerate based in Mumbai. The JSW Group is led by Sajjan Jindal and operates across various industries, including steel, energy, infrastructure, cement, automotive, and paints. The group’s operations span across India, the United States, South America, and Africa.

The foundation of the JSW Group dates back to 1982 when Sajjan Jindal acquired a re-rolling mill in Tarapur, Maharashtra, from Piramal Steel. The mill was subsequently renamed Jindal Iron and Steel Company (JISCO). In the same year, the group established its first steel plant in Vasind, near Mumbai, marking the beginning of its expansion into the steel industry.

In 1994, the group established Jindal Vijayanagar Steel Limited (JVSL) in the Bellary–Hospet region of Karnataka. This plant, strategically located in the high-grade iron ore belt, spans 3,700 acres of land. The group’s growth continued with the acquisition of Salem Steel Works in 2004. The following year, in 2005, JISCO and JVSL merged to form JSW Steel, consolidating the group’s position in the steel industry.

JSW Group’s diverse portfolio and strategic acquisitions have contributed to its growth and success over the years. The recent financial performance of JSW Infrastructure, despite the decline in net profit, reflects its continued efforts to expand and enhance its operational capabilities. The acquisition of Navkar Corporation and the increase in cargo volumes are indicative of the company’s strategic growth initiatives and its commitment to maintaining a strong presence in the infrastructure and port operations sector.