Volume growth of 15-17% sustainable over long term: JSW Infra

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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JSW Infrastructure will maintain a compound annual growth rate (CAGR) of 15-17% on volumes over the next five to seven years, says Arun Maheshwari, Joint Managing Director and Chief Executive Officer.

Infrastructure investments require a long-term perspective. Growth in this sector must be viewed over an extended period, as building capacity leads to increases in volume and occasional lumpy growth, he pointed out.

For the current financial year (FY25), the revenue, volume, and earnings before interest, tax, depreciation, and amortisation (EBITDA) are likely to grow around 10-12%, he said.    

The company’s shares were down over 2% despite a good set of earnings for the fourth quarter with a healthy growth in revenues and profit, and a surge in the cargo handled volumes.

JSW Infra’s revenues grew 20% to ₹1,096.4 crore for the January-March period, while profit after tax (PAT) grew nearly 10% to ₹330 crore. 

The earnings before interest, tax, depreciation, and amortisation (EBITDA) margin was at 47.7% versus 44.3% last year.

The cargo handled volumes for the last financial year (FY24) grew 15% over last year to 106 million tonnes per annum (MTPA).

The company aims to more than double the cargo handling capacity to 400 MTPA by FY30 from 170 MTPA now.

Maheshwari said JSW Infra is also pursuing and exploring various project development opportunities, leading to a robust project pipeline.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow