JSW Infrastructure is one of the leading private sector infrastructure companies in India, operating since 1999. JSW Infrastructure is the second-largest commercial port operator in India in terms of cargo handling capacity as of Fiscal 2022. The company offers mechanised and multi-cargo handling services. JSW Infrastructure is based in Maharashtra, India and provides construction and port services.
JSW Infrastructure Ltd prioritises environmental sustainability and is strategically situated along both the East and West coasts of India. Their journey began with the acquisition of the Mormugao Port Concession in Goa by the JSW Group in 2002. Since then, they have rapidly expanded, now managing nine Port Concessions across India as of December 31, 2022. Apart from India India, they have a notable international presence with two terminals in the UAE, located at Fujairah and Dibba.
JSW Infrastructure operates in diverse sectors across India, including non-major ports, airports, shipyards, townships, roads, and rail connectivity. Its revenue sources encompass:
- Vessel-related charges: Income from berth hire charges, port dues, pilotage, and towage billed to vessel owners.
- Cargo handling charges: Revenue generated from mechanised and multi-cargo handling services through handling fees.
- Rental income: Earnings from leasing assets like warehouses to third-party logistics providers.
- Other services: Additional revenue streams include container freight station services, bunkering, and ship repair services.
JSW Infrastructure's operating revenues range from ₹1,176.22 crore for the financial year ending on March 31, 2022, which has grown more than 5x times in just 3 years, i.e. FY 19-20.
Within India, JSW’s installed cargo handling capacity experienced remarkable growth, achieving a Compound Annual Growth Rate (CAGR) of 22.35% from 102.50 million metric tons per annum (MTPA) as of March 31, 2020, to an impressive 153.43 MTPA as of March 31, 2022.
India boasts a robust maritime infrastructure, featuring 12 major ports and around 200 non-major or intermediate ports overseen by state authorities. India is prominent in the global ship recycling arena, ranking among the top 5 countries and capturing a substantial 30% share of the global ship recycling market.
Within the framework of public-private partnerships (PPPs), a notable 58 projects valued at approximately ₹40,000 crore are in various stages of implementation. Among these, 33 projects, amounting to approximately ₹27,000 crore, have successfully transitioned to operational status. Concurrently, 25 projects, valued at over ₹13,000 crore, are actively being implemented.
By 2030, JSW Infrastructure aims to double its operational capacity from 153.43 million metric tonnes per annum (MTPA) to 300 MTPA, spanning 9 ports and terminals, as part of its market acquisition strategy.
JSW Infrastructure Limited IPO Details
JSW Infrastructure Limited IPO Date
The IPO of JSW Infrastructure Limited is open for subscription from September 25, 2023 to September 27, 2023.
JSW Infrastructure Limited IPO's Price Band
JSW Infrastructure Limited’s IPO is a fresh issue IPO of up to ₹2800 crore. It is a book-building issue. The price range is set to ₹113 to ₹119 per share.
JSW Infrastructure Limited IPO’s Lot Size
The lot size for JSW Infrastructure Limited’s IPO is 126 shares with a minimum investment of ₹14,994.
JSW Infrastructure Limited IPO’s Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Making advance payments or fully repaying certain outstanding debts by investing in its wholly owned Subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited.
- Funding the capital expenditure needs for the expansion and upgrade projects at Jaigarh Port, including the expansion of the LPG terminal ("LPG Terminal Project"), the establishment of an electric sub-station, and the procurement and installation of a dredger, all through investment in the wholly owned subsidiary, JSW Jaigarh Port Limited.
- Supporting the capital expenditure requirements for the proposed expansion of the Mangalore Container Terminal ("Mangalore Container Project") by investing in the wholly owned subsidiary, JSW Mangalore Container Terminal Private Limited.
- Utilising funds for general corporate purposes.
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Contact Details of JSW Infrastructure Limited
Registered office: JSW Centre, Bandra Kurla Complex Bandra (East), Mumbai 400 051, Maharashtra, India
Contact Person: Gazal Qureshi, (Company Secretary and Compliance Officer)
Phone: +91 22 42861000
E-mail: infra.secretarial@jsw.in
JSW Infrastructure Ltd Company Financials
| Financial year | FY23 (₹ in Crore) | FY22 (₹ in Crore) |
|---|---|---|
| Total Income | 2,399.65 | 2,378.74 |
| Sales Growth (%) | NA | 41.75% |
| EBITDA Margin (%) | 52.87% | 51.08% |
| Profit After Tax (PAT) | 515.55 | 425.98 |
| PAT Margin (%) | 18.64% | 13.89% |
| Total Borrowings | 314.73 | 321.92 |
Know before investing
Strengths
6The company has diversified its operations across various aspects, including cargo types, geographic locations, and assets.
Over the past three fiscal years (FY 2020 to FY 2022), the company has achieved impressive growth with a Compound Annual Growth Rate (CAGR) of 41%, 30% and 29% in revenue, EBITDA, and net profit, respectively.
The strategic placement of the company's ports near its clients has facilitated repeated orders due to well-connected infrastructure.
In the 9-month ended FY 2022, a significant portion of cargo (45.8 MMT) consisted of repeat orders from existing clients, representing 69.4% of the total cargo volume.
The company enjoys stable and predictable revenues owing to long-term concessions, committed long-term cargo agreements, and steady tariffs.
Leveraging the reputation of the JSW Group and a highly qualified and experienced management team provides a competitive advantage.
Risks
6The company's operations depend on concession and license agreements granted by government and quasi-governmental entities, which pose regulatory and operational risks.
A substantial portion (55.8%) of the company's revenue in the 9-month ended FY 2022 came from its top five clients, making it vulnerable to revenue decline if these clients reduce or cease business dealings.
As of December 31, 2022, the company carries a net debt of ₹2,875 crore, making it susceptible to adverse impacts from rising interest rates and increased finance costs.
A significant proportion of the cargo handled includes coking coal, iron ore, and thermal coal; any reduction or elimination of these cargoes could affect profitability.
The company's capacity utilisation rate was at 55.5% in the 9-month ended FY 2022, and its inability to maintain or increase this level could negatively impact its business prospects.
