Latest news with #JSWInfra
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Business Standard
16-05-2025
- Business
- Business Standard
Jindal family sells stake worth ₹1.2K crore to fund AkzoNobel India buy
The Sajjan Jindal Family Trust has offloaded 2 per cent in JSW Infrastructure Ltd — India's second-largest commercial port operator — in a ₹1,210 crore transaction to multiple institutional investors, including the Singapore government, in a bid to fund the potential acquisition of AkzoNobel India. The trust has offloaded 0.88 per cent stake in JSW Infra to the Government of Singapore for ₹531 crore via block deals on Thursday. According to data from the National Stock Exchange (NSE), Singapore's sovereign arm purchased around 18.4 million shares at ₹288 apiece from the promoter group. The share sale is aimed at complying with India's minimum public shareholding norms by the promoters. It is also for potentially financing JSW Group's planned acquisition of AkzoNobel India from its Dutch promoter, people familiar with the matter said. This acquisition of Akzo Nobel India will mark JSW's latest strategic push into the consumer-facing paints segment, where it is aiming to build scale in a market witnessing heightened competition. The acquisition of AkzoNobel India will give JSW access to a robust nationwide distribution network and the well-recognised Dulux brand, bolstering its presence in a sector recently disrupted by the entry of the Aditya Birla Group. Parth Jindal, scion of the Jindal family, is leading the talks with Akzo Nobel NV and an announcement is expected soon, say bankers. AkzoNobel NV holds a 75 per cent stake in its Indian subsidiary. JSW Infrastructure shares closed at ₹288.25 on the BSE on May 16, valuing the company at about ₹60,533 crore. Akzo Nobel India closed 3.3 per cent up at ₹3,597 a share. The Sajjan Jindal Family Trust held an 80.72 per cent stake in JSW Infrastructure as of March 31, while total promoter shareholding stood at 85.62 per cent. Under the Securities and Exchange Board of India (Sebi) regulations, listed companies must maintain at least 25 per cent public float. JSW Infra, which went public in October 2023, has until September 2026 to bring promoter holdings below the 75 per cent threshold. In a recent filing, JSW Infra said the promoter group, represented by Sajjan Jindal and Sangita Jindal, plans to sell up to 2 per cent of its stake through open market transactions between May 13, 2025, and March 31, 2026.
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Business Standard
16-05-2025
- Business
- Business Standard
Adani Ports, JSW Infra make logistics anchor for cargo growth plans
Adani Ports and JSW Infrastructure, India's leading private port operators, are expanding their logistics services to capture extra cargo while they run integrated transport services. 'With incrementally less availability of lucrative port assets that can drive cargo volumes, port operators have naturally shifted their focus on deriving value in the upstream integration, i.e., the logistics space. The synergies being derived through end-to-end service capability for importing or exporting cargo, along with handling of the domestic cargo, are driving port operators to invest in building hinterland assets,' said Varun Gogia, assistant vice-president & sector head, corporate ratings, Icra. Adani Ports and Special Economic Zone (APSEZ), India's top private port operator, has 12 multimodal logistics parks (MMLPs), 132 rakes, more than 3 million square feet of warehousing space, around 6,000 containers, and 937 trailers and tipper trucks. It has 18,250 hectares of industrial land and is building a bank of over 1,528 acres at various industrial clusters, which are integrated with hinterland logistics (like rail and road). APSEZ's management, in earnings' call for Q4 FY25, said it aims to become an integrated transport utility company. The company has a truck-management platform and a freight-forwarding business. 'These are capitalised businesses. They come with very high return on capital employed (ROCE),' said D Muthukumaran, chief financial officer (CFO) of APSEZ, adding that growth in logistics is likely to be inorganic (business growth from acquisitions). JSW Infrastructure (JSW Infra) acquired a majority stake in Navkar Corporation, a logistics firm, for Rs 1,644 crore in FY25. Lalit Singhvi, whole-time director and CFO of JSW Infra, told 'Business Standard' earlier the company is looking for more inorganic opportunities in logistics and has submitted bids to the National Company Law Tribunal for acquisitions. JSW Infra has two Gati Shakti Cargo Terminals (GCT) and plans to participate in more such opportunities to build a nationwide logistics network of 15-20 GCT centres in five years to have an 'industry-leading ROCE'. The company aims to use 100 acres of undeveloped land in Panvel, Maharashtra, and Morbi, Gujarat, for its logistics plans. It seeks a logistics revenue of Rs 8,000 crore and a 25 per cent ebitda margin by FY30, led by adopting an asset-light model via GCTs, synergies with the JSW Group, opportunities in the logistics sector, and major cleanup in accounts, said analysts at Ellara Capital in a note. (Ebitda stand for earnings before interest, taxes, depreciation, and amortisation) The logistics strategies of APSEZ and JSW Infra are a natural extension of their port businesses, according to experts. The companies seek to earn more from customers by offering 'end-to-end solutions', improved port efficiency, and more cargo volumes. Manish Goel, founder and managing director (MD) of Equentis Wealth Advisory Services, said, 'APSEZ benefits from scale, a pan-India port presence, and early investments in multi-modal connectivity and warehousing, making it one of the few players capable of offering genuine end-to-end solutions. Meanwhile, JSW Infra leverages the group's industrial backbone. With steady captive cargo and access to in-house infrastructure, it enjoys operational certainty and volume visibility—two critical ingredients in logistics.' APSEZ's FY25 logistics revenue grew 38.6 per cent to Rs 2,881 crore, while ebitda increased 18.9 per cent to Rs 642 crore. Margins declined to 22 per cent from 26 per cent in FY24. Expansion will reduce overall ebitda percentage but increase ROCE, the company said. It has guided trucking revenue, which was Rs 428 crore in FY25, to grow at least three-fold in FY26. JSW Infra reported a logistics revenue of Rs 250 crore and ebitda of Rs 41 crore in FY25. It has guided FY26 logistics revenue to grow 50 per cent, driven by rake additions, terminals, and GCT initiatives. The expansion plans of the two companies may have mixed financial implications as logistics is a low-margin business, experts said. According to Vijay Agrawal, MD - investment banking at Equirus Capital, ports give ebitda margins of 60-70 per cent and ROCE of 12-17 per cent. Logistics generates lower ebitda (15-25 per cent) and ROCE (12-15 per cent). 'For example, APSEZ's logistics contribute 12 per cent of revenue but only 4 per cent of ebitda. JSW Infra is better positioned with low leverage and a 54 per cent margin at the group level, though logistics returns are yet to materialise fully.' APSEZ plans a multi-year capital expenditure of Rs 20,000 crore to Rs 20,500 crore in land, new trucks, agriculture silos, trains, MMLPs, and warehouses. JSW Infra has earmarked Rs 9,000 crore for expanding its logistics business between FY25 and FY30. Goel believes that such huge capital outlays by operators is a risk. 'For APSEZ, logistics yields around 18 per cent ebitda margin — lower than core port operations. As capital intensity rises, this margin pressure could dilute overall profitability. The company's net debt-to-Ebitda ratio is also expected to increase, adding to financial strain.' There are challenges like a volatile trade environment, potential delays in land acquisition, regulatory clearances and scarcity of skilled human capital. However, the experts believe the two companies' logistics plans are worth it, as they are long-term investments with strategic methods of expansion. Pratik Mundhada, director at India Ratings & Research, said, most port operators follow an asset-light model for positive impact on ROCE. APSEZ and JSW Infra aim to use logistics for better cargo movement and eliminating middlemen and agents. Agrawal, of Equirus Capital, believes the companies' plans may dilute short-term returns, but are viable for the long term due to India's logistics demand and policy support. "These investments will yield results on an overall basis with increased throughput at the port, operational efficiencies, and top line."
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Business Standard
16-05-2025
- Business
- Business Standard
Adani Ports, JSW Infra bet big on logistics to boost cargo volumes
The top two private port operators in India are betting big on their logistics expansions to capture extra cargo while offering integrated transport services. 'With incrementally less availability of lucrative port assets that can drive cargo volumes, port operators have naturally shifted their focus on deriving value in the upstream integration, i.e. the logistics space. The synergies being derived through end-to-end service capability for importing or exporting cargo, along with handling of the domestic cargo, are driving the port operators to invest in building hinterland assets,' said Varun Gogia, assistant vice-president and sector head, corporate ratings, Icra. Adani Ports and Special Economic Zone (APSEZ), India's top private port operator, operates 12 multimodal logistics parks (MMLPs), 132 rakes, over 3.1 million square feet of warehousing space, more than 6,000 containers, and 937 trailers and tipper trucks. The company has 18,250 hectares of industrial land and is also building a land bank of over 1,528 acres in and around different industrial clusters across India, integrated with hinterland logistics (rail, road, etc.). During the Q4 FY25 earnings call, the company's management expressed its ambition to exhibit custody over cargo rather than just control and become an integrated transport utility company. In logistics, APSEZ has a truck management platform and a freight forwarding business. 'These are capitalised businesses. They come with very high return on capital employed (ROCE),' said D. Muthukumaran, CFO, APSEZ, adding that the growth in logistics may come inorganically. Meanwhile, JSW Infrastructure (JSW Infra) is keen to pursue an asset-light, inorganic model for its logistics expansions. In FY25, the company acquired a majority stake in Navkar Corporation, a logistics firm, for Rs 1,644 crore. Lalit Singhvi, whole-time director and CFO at JSW Infra, stated that the company is looking for more inorganic logistics growth opportunities and has submitted bids to the National Company Law Tribunal for certain acquisitions. The company aims to leverage acquisitions of container freight stations and inland container depot businesses. JSW Infra has two Gati Shakti Cargo Terminals (GCT). It is planning to participate in more such opportunities to build a pan-India logistics network, creating 15–20 GCT centres in the next five years to achieve industry-leading ROCE. The company has 100 acres of undeveloped land in Panvel and Morbi. It also aims to leverage the land being given under the Gati Shakti programme. The company is targeting a logistics revenue of Rs 8,000 crore and a 25 per cent Ebitda margin by FY30, led by adopting an asset-light model via GCTs, synergies with the JSW Group, opportunities in the logistics sector, and major cleanup in accounts, analysts at Ellara Capital noted. Industry experts believe that the integration strategy of APSEZ and JSW Infra is a natural extension of their port businesses. The firms are eyeing a higher customer wallet share by offering end-to-end solutions, which tend to increase customer stickiness, improve port efficiency, and eventually boost cargo volumes and revenue diversification in a traditionally fragmented field. Manish Goel, founder and managing director, Equentis Wealth Advisory Services, said, 'APSEZ benefits from scale, a pan-India port presence, and early investments in multimodal connectivity and warehousing, making it one of the few players capable of offering genuine end-to-end solutions. Meanwhile, JSW Infra leverages the group's industrial backbone. With steady captive cargo and access to in-house infrastructure, it enjoys operational certainty and volume visibility—two critical ingredients in logistics.' APSEZ's logistics revenue in FY25 grew by 38.6 per cent to Rs 2,881 crore, while its Ebitda increased by 18.9 per cent to Rs 642 crore. The margins, however, declined to 22 per cent in FY25 from 26 per cent in FY24. The expansion plans are set to reduce APSEZ's overall Ebitda percentage but increase ROCE, being capital-light businesses, the company said. It has guided the trucking revenue, which stood at Rs 428 crore in FY25, to grow by 3–4 times in FY26. Meanwhile, JSW Infra reported a logistics revenue of Rs 250 crore and an Ebitda of Rs 41 crore. For FY26, the company has guided the logistics revenue to grow by 50 per cent year-on-year, driven by rake additions, terminals, and GCT initiatives. However, the strategic logistics expansions by the port operators may have mixed financial implications, as logistics is a low-margin business. According to Vijay Agrawal, managing director – investment banking, Equirus, ports deliver high Ebitda margins (60–70 per cent) and ROCE (12–17 per cent), while logistics generates lower margins (15–25 per cent) with ROCE (12–15 per cent). 'For example, APSEZ's logistics contribute 12 per cent of revenue but only 4 per cent of Ebitda. JSW Infra is better positioned with low leverage and a 54 per cent margin at the group level, though logistics returns are yet to materialise fully.' APSEZ has planned a capex of Rs 20,000–20,500 crore to invest in land, new trucks to enhance last-mile connectivity, agri-silos, trains, MMLPs, and warehouses, while JSW Infra has earmarked Rs 9,000 crore for expanding its logistics business between FY25 and FY30. Goel believes that huge capital outlays by operators pose a clear risk to return metrics. 'For APSEZ, logistics yields around 18 per cent Ebitda margin—lower than core port operations. As capital intensity rises, this margin pressure could dilute overall profitability. The company's net debt-to-Ebitda ratio is also expected to increase, adding to financial strain.' Moreover, challenges like a volatile trade environment amid global uncertainties such as tariffs and geopolitical tensions, difficulties in execution amid potential delays in land acquisition, regulatory clearances, or construction, and scarcity of skilled human capital also persist. However, experts believe that the operators' logistics plans can still be worth it, as these are long-term investments with strategic methods of expansion, such as using asset-light and inorganic models. Pratik Mundhada, director, India Ratings & Research, said, 'Most of the port operators are adopting asset-light model, which would have positive impact on ROCE, even with a lower operating margin in the downstream logistics business. However, incremental operating profit would continue to support the valuation.' With their logistics play, the port operators aim to control the cargo movement with better coordination and direct access to the beneficial cargo owners by eliminating the middlemen and agents, saving costs for the owners. Additionally, Agrawal believes that, despite thinner profitability, these bets are viable long-term plays due to India's logistics demand, policy support, and integration benefits—but they may dilute short-term returns. 'These investments will yield results on an overall basis with increased throughput at the port, operational efficiencies, and top line.'
Business Upturn
02-05-2025
- Business
- Business Upturn
JSW Infrastructure shares up 2% after Q4 profit jumps 57% YoY to Rs 516 crore
Shares of JSW Infrastructure Ltd rose 2.01% to ₹299 in Thursday's session after the company reported strong fourth-quarter earnings for FY25. The stock opened higher and hit an intraday high of ₹302.85 on the BSE, compared to the previous close of ₹293.10. The surge came after the company announced a 57% year-on-year rise in net profit to ₹516 crore for Q4FY25. Revenue from operations increased by 17.06% to ₹1,372 crore, while EBITDA rose 7% to ₹730 crore. Cargo volumes during the quarter also improved by 5% YoY to 31.2 million tonnes. For the full year FY25, JSW Infra posted a net profit of ₹1,521 crore, up 31% from the previous year, on revenue of ₹4,829 crore (+20% YoY). Annual cargo volumes increased 9% to 117 million tonnes, with third-party cargo share climbing to 49%. The company has proposed a final dividend of ₹0.80 per share, subject to shareholder approval. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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Business Standard
30-04-2025
- Business
- Business Standard
JSW Infra Q4 results: Profit jumps 54% despite moderate cargo volume growth
Sajjan Jindal-led JSW Infrastructure (JSW Infra) posted an annual increase of 54.4 per cent in its profit (attributable to the owners of the company) for Q4FY25, despite a moderate growth of 5 per cent in the cargo volume handled by the company. The company's profit stood at Rs 509.4 crore, beating the Bloomberg analysts' poll estimate of Rs 364.2 crore. Meanwhile, the cargo volumes handled by the company stood at 31.2 million tonnes. The company's revenue from operations for the quarter also grew by 17.04 per cent year-on-year (YoY) on the back of higher volumes and consolidation of Navkar Corp's business. It stood at Rs 1,283.2 crore, topping the estimate of Rs 1,267.1 crore. The total expenses during the quarter increased by only about 1 per cent YoY, to Rs 790.6 crore. The earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased by 7 per cent YoY, to Rs 730 crore, with a margin of 53.2 per cent. The volume increase in the quarter was driven by the robust performance at the coal terminals in Mangalore, Ennore, and Paradip, along with contributions from interim operations at the Tuticorin Terminal and the Jawaharlal Nehru Port Authority (JNPA) Liquid Terminal. 'However, this growth was partially offset by reduced cargo volumes at the iron ore terminal in Paradip,' said Lalit Singhvi, whole-time director and chief financial officer at JSW Infra, during the firm's earnings call on Wednesday (April 30). Rinkesh Roy, joint managing director and chief executive officer, speaking on the slowdown in iron ore cargo, said, 'This will be a slightly volatile market (hence), will not be able to exactly predict the nature of this, because primarily a large part of this movement is for the export market. So, we will be watching the trend.' In Q4FY25, the share of third-party volume in the total cargo handled by the company increased by 11 per cent YoY to 50 per cent. The third-party cargo handled by the company stood at 15.5 million tonnes. During the quarter under review, the company completed the acquisition of the slurry pipeline business in Odisha and signed a long-term take-or-pay agreement with JSW Steel. In FY25, the company's revenue grew by almost 19 per cent YoY to Rs 4,476.14 crore, while the profit increased 30.03 per cent YoY to Rs 1,503.1 crore. The company handled a cargo of 117 million tonnes in FY25, up 9 per cent YoY, achieving its annual guidance of 116–117 million tonnes. The increase in volume was primarily amid incremental volumes from the acquired assets (Fujairah Liquid Terminal in the UAE and PNP Port) and increased capacity utilisation across the coal terminals at Paradip, Ennore, and Mangalore. In FY26, the company has planned a capex of Rs 4,000 crore for ports and Rs 1,500 crore for the logistics business. In FY26, it is aiming for a 10 per cent growth in port volumes and a 50 per cent growth in logistics revenue. Roy stated that the company is confident of achieving the guidance despite global uncertainties and challenges. The company aims to expand its total capacity to 400 million tonnes per annum by FY30 or earlier, with a capex plan of Rs 30,000 crore for ports and Rs 9,000 crore for the logistics business (FY25–FY30). It aims to achieve the capacity via privatisation bids, leveraging the balance sheet for other inorganic growth opportunities, and value-accretive acquisition of port-related logistics infrastructure. The company, through its wholly owned subsidiary JSW Port Logistics, had acquired a 70.37 per cent stake in Navkar Corporation for Rs 1,012 crore in June 2024. It is targeting a top line of Rs 8,000 crore, Ebitda of Rs 2,000 crore, and an Ebitda margin of 25 per cent for its logistics arm by FY30. JSW Infra's net debt to Ebitda ratio stands at 0.65x, while its cash and bank balance is Rs 3,188 crore as of March 31, 2025. Its gross debt stands at around Rs 4,659 crore. Sequentially, the company's revenue increased by 8.6 per cent, while profit grew by 54.5 per cent. Additionally, the company's board of directors recommended a dividend of Rs 0.8 per equity share of Rs 2 per share. Its share listed on the BSE closed at Rs 293.10 on Wednesday.
