INFRASTRUCTURE COMPANY SHARES GAIN AS Q1 PROFIT GROWTH MEETS ESTIMATE

, a part of JSW Group, is the second largest commercial port operator in India in terms of cargo handling capacity. The company also operates two port terminals under O&M agreements for cargo handling capability of 41 MTPA in the UAE. Stock price of the company jumped 3% on 23 July after the company announced it's Q1 results which were in line with estimates. The company reported a sales revenue of Rs 1,224 crore (increase of 21% YoY) and net profit of Rs 390 crore (increase of 31% YoY). This growth was supported by a 5% increase in cargo volumes which reached 29.40 million tonnes during the quarter. The Q1 performance of the company was largely in line with estimates and the management maintains it's FY26 volume growth guidance of 10% which is considered achievable. The company is a strong proxy for India’s steel demand and the rising coastal coal movement. In addition to the announced capex pipeline of Rs 40,000 crore, the company is estimated to have enough capacity to incur annual capex of Rs 3,000–4,000 crore while maintaining its net Debt-to-Ebitda ratio below 2.5x In view of the growing import/export cargo volumes, the company is all set to see profitable years, giving a good growth potential for long term investors.