Arun Maheswari, joint managing director and chief executive of JSW Infra, emphasized the company’s robust financial position, stating that their net debt/Ebitda is practically zero. He expressed confidence in the firm’s ability to aggressively expand, provided the opportunities are value accretive. Maheswari highlighted the potential to invest ₹5,000-6,000 crore, leveraging their strong earnings before interest, taxes, depreciation, and amortization (Ebitda).
The company is actively exploring the acquisition of a stake in a government-owned port marked for privatization. This strategic move aims to enhance port connectivity and strengthen JSW Infra’s market presence. JSW Group is meticulously evaluating various privatization prospects offered by the government, including the ambitious trans-shipment port project at Galathea Bay in the Great Nicobar Island. Maheshwari reiterated the significant opportunity for private players presented by the fact that the government still owns about 50% of the port capacities in India.
Highlighting the potential opportunities, Maheshwari mentioned that the company is assessing the prospects at Great Nicobar Island. The minister of ports, shipping, and waterways announced that the government has received expressions of interest from 11 entities for the ₹41,000-crore international transhipment port project on the island.
The proposed Andaman and Nicobar port, envisioned to handle 16 million containers annually, is anticipated to attract substantial investments through government and public-private partnerships spanning 30 to 50 years.
The Andaman and Nicobar port’s strategic location near major trade routes positions it as a strong contender to existing transhipment hubs like Singapore, Klang, and Colombo. The project, set for phased development, aims to start with a capacity to manage four million containers, with the initial phase costing ₹18,000 crore and targeting completion by 2028.
JSW Infrastructure Ltd’s proactive approach in evaluating strategic acquisitions and expansion opportunities underscores its commitment to fortifying its market standing and contributing to the development of India’s port infrastructure.
Financial Performance Reflecting Growth
JSW Infra’s solid financial performance further underscores its ambitions, with the company’s net profit for the December quarter doubling year-on-year to a commendable ₹250.66 crore. This significant growth was propelled by increased cargo volumes and elevated tariffs, contributing to a 17.85% rise in revenue, which surged to ₹940.11 crore during the same period.
In light of these developments, JSW Infrastructure’s ambitious expansion plans shed light on the company’s proactive stance in harnessing lucrative opportunities within the evolving port sector, poised to shape the industry’s landscape in the coming years.
