JSW Infra hits new high, freezes at 10% upper circuit on strong Q2 results

The stock hit a new high of Rs 188.75 and was trading at 59 per cent premium over its issue price of Rs 119 on the BSE

Shares of JSW Infrastructure scaled a fresh high of Rs 188.75. The stock was locked in the 10 per cent upper circuit at this level on the BSE on Monday, as of 12:32 PM.

The rally came on the back of heavy volumes after the company reported a strong set of numbers for the quarter ended September 2023 (Q2FY24).

The stock of the country's second-largest port operator today surpassed its previous high of Rs 186.15 touched on October 18. JSW Infra had made its stock market debut on October 3. Today, it was trading 59 per cent higher over its issue price of Rs 119.

 

A combined 20.88 million equity shares, representing nearly 1 per cent of total equity of JSW Infra, changed hands on the NSE and BSE in intra-day trade. There were pending buy orders for a combined 0.8 million shares on the exchanges, data showed.

In Q2FY24, JSW Infra’s profit after tax (PAT) jumped 85 per cent year-on-year (YoY) to Rs 256 crore, on the back of strong operational income. Revenue from operations grew 28 per cent YoY at Rs 848 crore, primarily driven by an increase in volume offtake.

The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) rose 33 per cent YoY at Rs 499 corre, on the back of increased revenue and cost control. Reported Ebitda margin improved 190 bps to 55.8 per cent from 53.9 per cent in a year ago quarter.

During the quarter, the company handled cargo volumes of 23.7 million tonnes, which is higher by 27 per cent over the last year.

The increase in the volume is primarily on the back of increased capacity utilization at the Paradip Coal terminal as well as Paradip Iron Ore terminal and increased offtake at the Dharamtar and Jaigarh ports.

Also, the Mangalore Container terminal handled close to 54,404 TEU, which is 7 per cent higher YoY.

Notably, the increase in the third-party volume was even stronger at 31 per cent and the share of third Party in the overall volume stood at 36 per cent vs 35 per cent a year ago, the company said in press release.

Meanwhile, JSW Infra through its wholly owned subsidiary JSW Terminal Middle East FZE recently signed a share purchase agreement with MPT Commodities (part of the Mercuria Group, Switzerland), to acquire a liquid storage facility of 465,000 cubic meters capacity at the Fujairah port, UAE for a consideration of $187 million.

The company said the acquisition is in line with the strategy of diversifying portfolio and pursuing value-accretive growth.

The acquisition will help the company to foray into the lucrative business of liquid storage at the Fujairah Port, UAE, which is the second-largest bunkering hub in the world after Singapore. The experience can be leveraged to explore similar opportunities in India, JSW Infra said.