JSW Infrastructure surges after Fitch Ratings affirms 'BB+' rating

Fitch Ratings stated that the 'positive' outlook reflects its expectation that JSWIL's leverage (gross debt/EBITDA) will mostly remain below our upgrade sensitivity, despite the company's increased investment plan.

The 'positive' outlook is also supported by the agency's expectation that JSWIL will maintain its third-party cargo mix at the current 40% level over the medium term.

The rating reflects JSWIL's geographically diversified port locations, reasonable tariffs and long-term take-or-pay contracts, which account for about 30% of total revenue.

The rating is moderated by its cargo's high exposure to two commodities, coal and iron ore, as well as customer concentration risk. JSW Steel contributes more than half of JSWIL's cargo volume, but JSWIL's credit assessment is not linked to that of JSW Steel.

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.