JSW Infrastructure, the second-largest private port operator in India, announced on Friday that its third-quarter profit more than doubled, helped by increased cargo volumes and higher rates. The company's shares increased by 4% as its consolidated net profit increased to Rs 251 crore (about $30 million) in the October-December quarter from Rs 115 crore the previous year.
Due to strong commercial activity and demand throughout the holiday season, port operators such as JSW Infrastructure benefited from increased cargo traffic into and out of the nation during the quarter.
Tariff hikes passed on to customers to cover higher transit costs also made a difference. After a decline in October, global freight prices increased 7% sequentially in November, according to brokerage Jefferies. The operational revenue of JSW Infrastructure increased by 18% to Rs 940 crore during the December quarter.
The company's coal and iron ore terminals at Paradip and Mangalore saw increased capacity utilization, contributing to a 17% increase in cargo volumes handled, reaching 28.10 million tonnes.
Its cargo handling capacity increased to 170 million tonnes per annum (MTPA) with the addition of additional ports and facilities, exceeding half of its 2030 target of 300 MTPA. The brokerage Kotak Securities had previously stated that the JSW Group company's investments in ports and logistics might yield "healthy" profits as it looks to challenge larger rival Adani Ports and Special Economic Zone.
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