Insurance claims linked to the disruption at the terminal are expected to be resolved by October-end, with operations gradually returning to normal, since the war broke out on February 28.
Eight storage tanks are expected to be operational by late July or early August, and three more are likely to return to service by September or October, the company’s management told analysts on a post-earnings call. It however cautioned that cargo volumes would depend on market conditions and vessel movements even after the tanks are ready.
Also read: JSW Infrastructure plans Rs 16,500-crore capex for FY27 & FY28
Chief financial officer Nagarajan J said the company has factored in only 2-2.5 MT of cargo from Fujairah for FY27 while retaining its broader operating guidance for the year.
“By July-end or the first week of August, we expect to get eight tanks operational,” said Rinkesh Roy, joint managing director and chief executive. “Then it depends on the climate at that point of time, whether prices are low, whether ships are going to come in.”
On the insurance claim, Roy said, “We have already put forward claims… we should expect a resolution by the end of October.”JSW Infrastructure is meanwhile continuing to press ahead with its domestic expansion plans. ET earlier reported on the company’s plan to invest ₹16,500 crore across FY27 and FY28, with ₹13,000 crore earmarked for ports, and ₹3,500 crore for logistics, as part of its long-term capacity expansion strategy.
Roy said the company has received environmental clearance for the proposed Murbe port project in Maharashtra, and construction is expected to start in December or January after signing the concession agreement. The Keni port project in Karnataka could receive the environmental clearance in three to four months, the management said.
Profit drops in June Quarter
For the June quarter, JSW Infrastructure reported a second consecutive drop in consolidated net profit. Net profit fell 8.2% to ₹358 crore from ₹390 crore a year earlier, while revenue from operations rose 18% to ₹1,445 crore. Cargo volumes increased 6% year-on-year to 31 MT from 29.4 MT, led by higher throughput at its domestic ports even as the Fujairah terminal remained affected by the war.