Motilal Oswal's research report on JSW Infrastructure
JSW Infrastructure (JSWINFRA) posted 18% YoY revenue growth to INR10b (in line) in 2QFY25. Cargo volumes rose 16% YoY to 27.5MMT, of which third-party cargo grew 48% YoY to 12.7MMT (46% of the total cargo in 2Q was from third parties). EBITDA margin dipped ~130bp YoY/~100bp QoQ to 52.0% (vs. our estimate of 53.7%). EBITDA grew ~15% YoY to INR5.2b (7% below estimate). APAT grew ~5% YoY to INR2.6b (our estimates of INR3.2b). Higher tax outgo hurt profitability. The cash & bank balance stood at INR29b at the end of 2QFY25. The company generated a CFO of INR6.8b during 1HFY25. During 1HFY25, revenue was INR20.1b (+16% YoY), EBITDA was INR10.4b (+15% YoY), and APAT was INR5.6b (+11% YoY). In 2HFY25, we expect revenue/EBITDA/APAT to grow 11%/14%/3% YoY.
Outlook
This should drive a 21% CAGR in revenue and a 23% CAGR in EBITDA over the same period. We reiterate our BUY rating with a revised TP of INR 350 (premised on 22x Sep’26 EV/EBITDA).
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