JSW Infra rises after board OKs capacity expansion plan of material subsidiaries

The company has approved a capex of Rs 2,359 crore for capacity expansion at its Jaigarh and Dharamtar Port.

As a part of the company's FY 2030 growth plan to increase capacity to 400 million tonnes per annum (MTPA) from the existing capacity of 170 MTPA, the board of the respective subsidiary companies has approved a total capacity expansion plan of 36 MTPA (21 MTPA at Dharamtar and 15 MTPA at Jaigarh).

The capex plan includes mechanical, civil, and electrical work for the new berths and additional infrastructure, such as railway siding for Jaigarh Port, to boost third-party cargo movement.

The said expansion will increased the overall capacity of Jaigarh Port to 70 MTPA from the current 55 MTPA, and Dharamtar Port to 55 MTPA from the current 34 MTPA.

This expansion primarily aims to cater to the increased cargo volume of the anchor customer on the back of the proposed 5 MTPA steel-making facility at Dolvi, Maharashtra. The expansion at both ports is expected to generate an additional cargo handling volume of approximately 27 MTPA.

The company will invest Rs 1,305 crore in JSW Jaigarh Port and Rs 929 crore in JSW Dharamtar Port. The expansion project will be funded through mix of debt & equity and construction at both ports is anticipated to be completed by March 2027.

Further, the board has approved the investment in Bhoke Railway Siding (Project) on the Konkan Railway route which will further improve the access to the railway for Jaigarh port's cargo, to be undertaken by the material subsidiary i.e. JSW Jaigarh Port. The total cash outflow for this project is estimated to be approximately Rs 125 crore.

JSW Infrastructure a part of JSW Group, is the second largest commercial port operator in India in terms of cargo handling capacity. It develops and operates ports and port terminals pursuant to port concessions.

On consolidated basis, the port operator has reported 8.87% fall in net profit to Rs 292.44 crore in Q1 FY25 as against Rs 320.89 crore recorded in Q1 FY24. Revenue from operations grew by 14.99% year on year (YoY) to Rs 1,009.77 crore in the quarter ended 30 June 2024.