In recent years, JSW Infrastructure Ltd has succeeded in raising the share of third-party cargo to 48% in H1FY24 from 25% in FY21. It helped improve capacity utilization to 63% in H1FY25 from 35% in FY21. The management has said that reaching 60% utilization helps achieve its target return on capital employed (ROCE) of 18%.
The company is investing ₹30,000 crore to expand cargo handling capacity to 400 million tonnes per annum (mtpa) by FY30 from 170 mtpa. Its net cash positive status as of September and improving cashflow should help meet funding needs. Promoter holding needs to come down to 75% over the next two years from 85.6%.
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