JSW Infrastructure, India’s second-largest private port operator, missed third-quarter profit estimates on Tuesday as cargo volume growth slowed due to lower iron ore exports.

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, compared with the average analyst estimate of 3.40 billion rupees, according to data compiled by LSEG.

A decrease in volumes at its Paradip iron ore terminal in the state of Odisha capped JSW Infra’s volume growth at 5% – lower than the past four quarters and also below brokerage ElaraCapital’s 6% estimate.

Iron ore prices hit exports in the October-December period and the company expects volumes to rebound in the ongoing quarter, Chief Financial Officer Lalit Singhvi said on a post-earnings call.

India’s slowing economic growth has curbed cargo volumes at port operators including JSW Infra and its bigger rival Adani Ports, ElaraCapital analysts said.

JSW Infra’s third-quarter results are not comparable with the year-earlier figures as it completed the acquisition of logistics firm Navkar in October, the company said.

The company said it gained 1.19 billion rupees in revenue and 55.1 million rupees in profit in the reported quarter from the acquisition.
Source: Reuters