India's JSW Infrastructure misses Q3 profit view on sluggish cargo volume growth

JSW Infrastructure

28/01/2025 11:29

Jan 28 (Reuters) - JSW Infrastructure  JSWN.NS , India's
second-largest private port operator, missed the third-quarter
profit view on Tuesday, as growth in cargo volumes decelerated
amid a broader slowdown in the world's fifth-largest economy.
    The company, which operates ten ports and terminals along
the country's coastline, reported a consolidated net profit of
3.30 billion rupees ($38.1 million) for the October-December
period. Analysts, on average, expected profit of 3.40 billion
rupees, per data compiled by LSEG. 
    Coal imports dropped in the quarter due to higher domestic
production and a slide in power demand, while weak demand for
iron ore from top consumer China hit exports.
    India's slowing economic growth has also curbed cargo
volumes at port operators including JSW Infra and its bigger
rival Adani Ports  APSE.NS , ElaraCapital analysts said in a
note.
        JSW Infrastructure said lower volumes at its Paradip
iron ore terminal in the state of Odisha capped volume growth at
5% in the reported quarter. The company reported 
    9%
     and 
    16%
     volume growth in the first two quarters of the current
fiscal year and a 
    17%
     increase in the year-ago third quarter.
  
    ElaraCapital had expected 6% volume growth in the reporting
quarter.
    The third-quarter results are not comparable with the
year-ago figures as the company completed the acquisition of
logistics firm Navkar Corporation in October, JSW Infrastructure
said. 
    The company said it gained 1.19 billion rupees in revenue
and 55.1 million rupees in profit in the reporting quarter from
the acquisition. 
    The company's shares ended little changed after the results.

($1 = 86.5430 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Eileen
Soreng)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))