JSW Infrastructure Ltd Management Discussions

Economic overview

Global economy

During 2023, several headwinds, such as volatile commodity prices, inflationary pressures and food and energy crises in Europe, continued to adversely impact the global economy. The war between Russia and Ukraine led to supply chain disruptions, rising costs of living and tightened liquidity conditions. All these factors, coupled with market volatility have dampened consumer sentiment and lowered capital outflows. To tame inflation and achieve price stability, central banks around the world have responded with synchronised rate hikes and tightened monetary policies.

The IMFs World Economic Outlook, April 2023 predicts that global growth will bottom out at 2.8% in 2023 before rising to 3.0% in 2024. Advanced economies are projected to display a growth rate of 1.3%; and global inflation is expected to decline from 8.7% in 2022 to 7.0% in 2023 before further declining to 4.9% in 2024.

The disruptions in global supply chains are gradually subsiding, signalling a gradual recovery from the pandemic-induced shocks. Moreover, it is expected that the monetary policies implemented by central banks will yield positive outcomes, resulting in a decrease in global inflation.

Outlook

Structural improvements can help fight inflation by boosting productivity and removing supply chain bottlenecks. Prudent measures implemented by central banks around the world are expected to lower the cost of essential commodities, thereby offering some relief to the common man. The emerging and developing economies are also powering ahead, with growth rates likely to witness an upsurge this year. Governments and central banks around the world are anticipated to execute targeted, need-based measures to help shape an optimistic outlook for global economic growth, going forward.

Indian economy

The Indian economy has demonstrated remarkable resilience in the face of global headwinds and sustained its position as the one of the fastest-growing major economies in the world. According to the National Statistical Offices (NSO) second advance estimates, the Indian economy has clocked a growth rate of 7.2% in FY23.¹ This expansion can be attributed to upbeat construction activity, aided by higher infrastructure investment by both the Central Government and State Governments.

By 2027, India is expected to become the worlds third-largest economy.

(Source- https://pib.gov.in/PressReleasePage.aspx?PRID=1929325 )

The Government has focused on infrastructure investments to kickstart the post-pandemic economic recovery. Over the course of the first eight months of FY 2022-23, the Government observed a substantial escalation of 63.4% in its capital expenditure (capex), consequently pitching in private investments. This upsurge in governmental outlay has successfully created a conducive environment for crowding in private sector investment.²

The proposed allocation for capital expenditure (capex) in the Union Budget for FY 2023-24 reached H10 lakh crore. This emphasis on driving infrastructure activity acts as a tailwind to drive long-term economic growth. The Government has also identified 100 transport infrastructure projects which will help facilitate end-to-end connectivity for diverse sectors such as ports, steel, coal and fertilisers.

Outlook

Banks, financial institutions and business entities with healthy balance sheets are helping recover the growth momentum which had been impacted by the pandemic. The demographic dividend, the digital revolution, policy measures aimed at transforming India into a global manufacturing hub, a rebound in service sector competitiveness, and the favourable geo-economic positioning that is underway have all improved medium-term prospects.

(Source – The Reserve Bank of India)

Industry overview

Indians port industry

Indian ports manage 90% of Indias international trade volume and 70% of its foreign trade value. The growth of trade operations and the involvement of private entities in port infrastructure are likely to boost port infrastructure development in India. There are 12 major ports in the country now, and as part of the Sagarmala National Perspective Plan, six additional mega ports are expected to be established.

Global economic trends, especially the upsurge in global production and trade, have influenced the maritime transport sector. As a result, the volume of cargo transported via sea and administered by ports is primarily determined by fluctuations in both global and domestic activities. Cargo volume at Indias 12 major ports spiked by 8.8% in FY 2022-23, reaching 783.50 million metric tonnes, up from 720.29 million metric tonnes during FY 2021-22.

Cargo handled at Indian ports (in million metric tonnes)

The amount of international cargo handled at major ports increased by 9.1% from 550.0 million metric tonnes in FY22 to 599.9 million metric tonnes in FY23. In addition, coastal freight managed at major ports increased by 7.8%, reaching 188.51 million metric tonnes in FY23, up from 170.28 million metric tonnes in FY22. ³

Milestones achieved during FY 2022-23

Indias primary seaports demonstrated remarkable performance by efficiently managing a historic aggregate cargo volume of 795 million metric tonnes, reflecting a notable growth rate of 10.4% compared to the preceding year. Moreover, they attained an unprecedented daily output of 17,239 metric tonnes, showcasing a commendable increase of 6% over the previous year. Noteworthy progress was also observed in achieving the best-ever operating ratio of 48.54%. These accomplishments have facilitated trade and economic growth within the country.

(Source- https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1920518 )

Government initiatives

• The Cabinet has granted approval for the establishment of a Container Terminal at Tuna-Tekra, under the Build, Operate and Transfer (BOT) framework, in accordance with the Public-Private Partnership (PPP) model.⁴

• A trilateral Memorandum of Understanding (MoU) has been signed to develop a contemporary Multi Modal Logistics Park (MMLP) under the Bharatmala Pariyojna initiative. These MMLPs will serve as top-tier hubs for efficient goods movement, with seamless connectivity via highways, trains and inland waterways.⁵

India aims at becoming a ‘Global Hub for Green Ship building by 2030.

• The Indian government is dedicated to reducing emissions from the shipping sector in line with its net-zero ambitions. A key objective in this regard is to make all major ports fully self-sustainable on electricity by the year 2030. This entails meeting the ports energy demand through renewable sources. The initiative also encourages green warehousing practices by employing environment-friendly and natural solutions such as maximising natural light, utilising energy-efficient lighting, adopting automated and compact storage systems, installing rooftop solar panels, utilising High Volume Low Speed (HVLS) fans and implementing rainwater harvesting techniques. 6

• The Ministry of Road Transport and Highways (MoRTH) is connecting major and minor ports with national highways to enhance the port logistics ecosystem. The aim is to create an integrated network connecting all major ports, non-major ports, and inland waterway terminals for efficient freight movement. A total of 52 critical infrastructure gap projects identified by the Ministry of Ports, Shipping, and Waterways (MoPSW) will be taken up under the PM Gati Shakti National Master Plan. Currently, 56 projects (including 11 inland waterway projects) are under bidding stage for feasibility assessment by the National Highways Authority of India (NHAI).

Port connectivity projects

Port connectivity and associated hinterland projects of 2,779 kilometres

• A new infrastructure project, the Bengaluru-Chennai Expressway spanning 262 km, is slated for construction. Additionally, a 21 km long, four-lane double decker elevated road will connect Chennai Port to Maduravoyal (NH-4). This development aims to enable continuous access for goods vehicles to Chennai port, ensuring uninterrupted movement around the clock. ⁷

Outlook

Increased investments and cargo traffic contribute to a promising outlook for Indias port sector. Service providers engaged in operation and maintenance (O&M), pilotage, harbour management, and marine asset deployment are reaping the benefits of these investments. The utilisation of domestic waterways has been identified as a cost-effective and eco-friendly mode of freight transportation. In line with this, the Government has set a target to operationalise 23 waterways by 2030.⁸ Under the Sagarmala project, an extensive portfolio of over 574 projects, with an estimated value of Rs. 6 lakh crore ($ 82 billion), is scheduled for implementation between 2015 and 2035.⁹

Addtionally, as part of the Prime Ministers Gati Shakti Master Plan, a substantial expansion is anticipated in the transmission infrastructure. A total of 27,000 circuit kilometres of transmission lines are planned to be added by the year 2024-25, requiring an investment of H 75,000 crore.¹⁰ These ambitious initiatives, combined with the ongoing port connectivity projects, are expected to contribute to a promising outlook for the sector.

Company overview

JSW Infrastructure specialises in the development of port infrastructure and operates ports and terminals throughout India. Being positioned as one of the leading private port companies in India, the Company distinguishes itself through its dedication to environmental, social, and governance (ESG) sustainability principles. Founded in 2006, JSW Infrastructure has been an integral part of the JSW Group, a prominent conglomerate with a total revenue of $ 23 billion.

JSW Infrastructure operates advanced seaports and terminals that are strategically positioned along the eastern, western, and southern coasts of the country. These facilities play a crucial role in nation-building by offering top-notch infrastructure and establishing new industry standards of excellence. Prioritising eco-consciousness, JSW Infrastructure contributes to the advancement of Indias maritime sector, promoting sustainability and ecological responsibility.

Business overview

The Company raised its installed cargo handling capacity considerably, positioning itself as the fastest-growing port-related infrastructure company. Its operations commenced with a single Port Concession at Mormugao, Goa, which the JSW Group acquired in 2002 and began operations in 2004. The Company now operates nine Port Concessions across India as on March 31, 2023. Moreover, under Operations and Maintenance (O&M) agreements, the Company operates two ports in the United Arab Emirates (UAE), contributing to a total cargo handling capacity of 41 MTPA as on March 31, 2023. The Company offers a wide range of maritime-related services, including cargo handling, storage solutions, logistics services and value-added services. The Company develops and operates ports and port terminals through Port Concessions, which typically have long concession periods ranging from 30 to 50 years. As on March 31, 2023, the average balance concession period across the operational ports and terminals is approximately 25 years, with the Jaigarh Port, one of its largest assets, having a balance concession period of 35 years.

With a diversified presence across India, the Companys non-major ports are located in Maharashtra, while its port terminals are situated at major ports in industrial regions such as Goa, Karnataka, Odisha and Tamil Nadu. These locations are strategically chosen for their proximity to anchor customers and easy access to cargo origination and consumption points. This enables the Company to effectively serve the industrial regions of Maharashtra, Goa, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana, as well as the mineral-rich belts of Chhattisgarh, Jharkhand and Odisha. As a result, these assets are port-of-choice for its customers.

JSW Jaigarh Port Limited

Jaigarh Port, the Companys largest port in terms of installed cargo handling capacity as on March 31, 2023, is situated in Ratnagiri district. It has a draft of 17.5 metres, making it one of the deepest draft ports in India. This all-weather port is multifunctional and operates around the clock, catering to diverse cargo categories. The port is well protected by 712-metre breakwater to ensure effective protection. Further, it has obtained ISO 9001:2015 and ISO 14001:2015 certifications from IRCLASS Systems and Solutions

Private Limited, demonstrating its adherence to international quality and environmental management standards.

Jaigarh Port, which caters to a vast hinterland that includes northern Goa, southern and western Maharashtra and northern and central Karnataka, is crucial to facilitating logistics and trade operations. The port is equipped with fully-mechanised, cargo handling system, with modern equipment to ensure quick vessel turnaround and improved cargo handling services for customers. The Company is dedicated to transforming Jaigarh Port into the most preferred facility in Maharashtra by delivering superior services and operational efficiency.

Quick facts

Location	Jaigarh, Ratnagiri, Maharashtra
Existing capacity	55.0 MTPA
CoD	Operational: 2010
Concession period	50 years (till 2058)
Infrastructure	Berths: 7; Draft: 17.5 metres
Key cargo	Coal, iron ore, limestone, sugar, molasses, fertilisers, bauxite, gypsum, urea, LPG

South West Port Limited

The South West Port, originally acquired by the JSW Group in 2002 is located within the protected Mormugao harbour of the Mormugao Port Trust in Goa. The terminal is capable for year-round, all-weather operations. It is a crucial logistical support hub for JSW Steels facility in Karnataka, playing a vital role in streamlining the Companys operations.

The imported coking coal accounts for the majority of the products handled at the South West Port along with limestone. Further, the port handles steel slabs and coils for JSW Steels Vijayanagar Steel plant. The closest port location and efficient operating capabilities of the South West Port make it a valuable asset in addressing JSW Steels logistical needs and enabling the import and export of essential commodities.

Quick facts

Location	Mormugao, Goa
Existing capacity	8.5 MTPA
CoD	Operational: 2004
Concession period	30 years (till 2029)
Infrastructure	Berths / length: 2 / 450 metres; Draft: 14.5 metres
Key cargo	Coking coal, limestone and steel products

JSW Dharamtar Port, Dolvi, Maharashtra

Dharamtar Port, situated in the Raigad district of Maharashtra, is approximately 23 nautical miles from Mumbai Harbour via the Amba River. This all-weather riverine port serves as a captive facility for handling bulk and break-bulk cargo. It primarily supports a considerable portion of JSW Steels steel manufacturing operations and a smaller portion of JSW Cements cement manufacturing activities at Dolvi in Maharashtra.

One advantage of the Dharamtar Port is its relative insulation from abrupt changes in coastal weather conditions. Being positioned further inland, away from the rivers mouth, it is less susceptible to sudden weather fluctuations. This attribute contributes to the ports ability to maintain consistent operations and facilitate smooth cargo handling activities.

Quick facts

Location	Dharamtar, Raigad, Maharashtra
Existing capacity	34.0 MTPA
CoD	Operational: 2012
Infrastructure	Berths length: 1045 metres; Draft: 3.5 metres
Key cargo	Iron ore Pellets, lumps, fines, coal, coke, limestone, dolomite, finished steel products, clinker, slag.

JSW Paradip Terminal Private Limited

The Paradip Iron Ore Terminal, situated within the Paradip Port in Odisha, occupies a strategic position in close proximity to the iron ore mines in the region. This advantageous positioning grants the terminal easy access to the iron ore-rich belts of Odisha, Chhattisgarh and Jharkhand. The project is Indias most advanced iron ore terminal, fully mechanised and environment-friendly, handling iron ore and pellet cargo. The Company commenced operations at the Paradip Iron Ore Terminal in 2019, leveraging its strategic location to efficiently handle iron ore shipments from the region.

Quick facts

Location	Paradip, Odisha
Existing capacity	10.0 MTPA
CoD	2019
Concession period	30 years (till 2045)
Infrastructure	Berth length: 370 metres; Draft: 16 metres
Key cargo	Iron ore, pellet exports

Ennore Coal Terminal Private Limited

The Company acquired the Ennore Coal Terminal during FY 2020-21 from the Indian conglomerate, Chettinad Group. This terminal is located in Ennore, Tamil Nadu, and was developed on a Build-Operate-Transfer (BOT) basis specifically for the import and handling of coal and coke. The acquisition of the Ennore Coal Terminal has further bolstered the Companys presence in the region and improved its capabilities to manage and service coal and coke imports efficiently.

Quick facts

Location	Ennore, Tamil Nadu
Existing capacity	8.0 MTPA
CoD	2011
Concession period	30 years (till 2038)
Infrastructure	Berth length: 347.5 metres; Draft: 16 metres
Key cargo	Coal and coke

Ennore Bulk Terminal Private Limited

The Ennore Bulk Terminal was acquired by the Company during FY 2020-21 from the Indian conglomerate, Chettinad Group. This terminal is located in Ennore, Tamil Nadu and was developed on a Build-Operate-Transfer (BOT) model with a focus on handling a variety of clean cargo. The acquisition of the Ennore Bulk Terminal further strengthens the organisations presence in the region and enhances its capacity to efficiently manage and handle various types of clean cargo.

Quick facts

Location	Ennore, Tamil Nadu
Existing capacity	2.0 MTPA
CoD	2017
Concession period	30 years (till 2045)
Infrastructure	Berth length: 270 metres; Draft: 14.50 metres
Key cargo	General/ Multi cargo and clean cargo

Mangalore Coal Terminal Private Limited

The New Mangalore Coal Terminal, located within NMPT (New Mangalore Port Authority), is an all-weather terminal located in Panambur, Mangalore, on the west coast of India. It is situated approximately 170 nautical miles south of Mormugao Port and 191 nautical miles north of Cochin Port.

The terminal serves as a vital hub for the power plants located in Karnataka and Tamil Nadu. These power plants are the key customers of the New Mangalore Coal Terminal, relying on it for efficient handling and supply of coal and limestone to meet their energy requirements.

Quick facts

Location	New Mangalore, Karnataka
Existing capacity	6.7 MTPA
CoD	2019
Concession period	30 years (till 2047)
Infrastructure	Berth length: 325 metres; Draft: 14 metres
Key cargo	Coal, gypsum, limestone, fertilisers

Paradip East Quay Coal Terminal Private Limited

The Paradip Coal Exports Terminal, situated within the Paradip Port in Odisha, is a deep draft terminal equipped with mechanised handling capabilities. This enables the terminal to handle larger vessels efficiently. The terminals facilitates the export and coastal movement of domestic coal from the Mahanadi Coal Fields.

Operations at the Paradip Coal Exports Terminal commenced in 2021, enhancing the Companys coal export capabilities and providing the essential infrastructure required for the transportation of coal from the Mahanadi Coal Fields.

Quick facts

Location	Paradip, Odisha
Existing capacity	30.0 MTPA
CoD	Commissioned in FY 2021-22
Concession period	30 years
Infrastructure	Berth length: 686 metres; Draft: 15 metres
Key cargo	Coal

JSW Mangalore Container Terminal Private Limited

The Company entered into a concession agreement with the New Mangalore Port Authority (NMPA) to develop and operate the ports inaugural container terminal project for a period of 30 years. The NMPA, situated in Panambur, Mangalore, Karnataka, is an all-weather lagoon-type port and serves as a crucial catalyst for the economic growth of Karnataka and the southwestern region of India.

NMPA was handling approximately 150,000 TEUs (twenty-foot equivalent units) prior to receiving the concession. With an investment of around H 150 crore, the Company has undertaken Phase 1 of the modernisation of the terminal, increasing its capacity to 239,148 TEUs of containers and 0.64 MTPA of other cargo.

Furthermore, the Company plans to proceed with Phase 2 development of the container terminal, which will result in a cumulative capacity of 358,722 TEUs containers and 0.64 MTPA of other cargo.

The container terminal has a quay length of 350 metres and can accommodate vessels of up to 9,000 TEUs. It is backed up by a container-specific storage space of 15.5 hectares. The terminal became operational in March 2022, resulting in improved container handling and transport at NMPA.

Quick facts

Location	New Mangalore
Existing capacity	239,149 TEU
CoD	March 2022
Concession period	30 years
Infrastructure	Berth length: 350 metres; Draft: 14 metres
Key cargo	Container, bulk cargo

JSW Terminal (Middle East) FZE

The Company has signed an agreement with Fujairah Sea Port Authority (POF) for the operation, maintenance and repair of the complete bulk handling system, including ship loaders and conveying systems, at berth numbers 5 and 6 in Fujairah Sea Port. The initial agreement commenced in the FY 2016-17 for a duration of five years. Subsequently, the agreement has been renewed for another five years, extending until FY 2026-27.

The terminal at Fujairah Sea Port currently has a handling capacity of 24 million metric tonnes per annum (MMTPA). Through its collaboration with the Fujairah Sea Port Authority, the Company has successfully contributed to the effective and reliable management of bulk cargo operations at the port. Consequently, this partnership has not only facilitated the expansion of the terminal, but has also enhanced its regional capabilities.

Upcoming ports and projects

Jatadhar Port, Odisha

JSW Steel, through its wholly owned subsidiary JSW Utkal Steel Limited, is currently obtaining the requisite government licences for the establishment of an integrated steel plant in the Jagatsinghpur district of Odisha. The proposed steel plant will have an annual capacity of up to 13.2 million metric tonnes (MTPA). The Ministry of Environment, Forests, and Climate Change has already granted environmental approval to the project. Along with the steel plant, the Company intends to develop a port along the Jatadhari Muhan river with a capacity of up to 52 MTPA in two phases. In first phase 30 MTPA capacity will be developed to serve cargo handling requirement of slurry pipeline project of JSW Steel. In second phase additional capacity of 22 MTPA will be developed to cater the need of the inbound and outbound cargo requirements of integrated steel plant. Additionally, the excess capacity of the port beyond the requirements of JSW Steel will provide an opportunity to handle third-party cargo in the future.

JSW Utkal Steel is currently in the process of securing the necessary approvals for the port development, which will then be transferred to the Company or its subsidiaries. This strategic project will not only enable the development of the steel plant, but also establish a port infrastructure that supports the efficient handling of cargo for both JSW Steel and potential third-party clients in the future.

Keni, Karnataka

The Company has recently submitted a bid for the development of an all-weather deep water greenfield port in the Keni district of Karnataka. The proposed port will follow a Design, Build, Finance, Operate and Transfer (DBFOT) model. Strategically located between the Mormugao Port to the north and the New Mangalore Port to the south, the port is expected to serve as a major transportation hub.

The concession agreement for the port is expected to have an initial term of 30 years, with the possibility of automatic extension for an additional 30 years upon fulfilling certain conditions. The port is projected to have a minimum installed capacity of 30 million metric tonnes per annum (MTPA) and will feature at least two fully equipped and functional berths. It will be authorised to handle various types of cargo, including dry bulk, break bulk, liquid, and gas cargo.

According to the terms of the concession agreement, the Company will be required to pay a royalty based on a per million metric tonnes (MMT) basis, subject to an annual compounded escalation rate of 2.00%. Additionally, the agreement will guarantee a minimum volume of cargo. In the event the Company is awarded the concession, it aims to complete the construction of the port within 36 months post-award.

This greenfield port is intended to substantially enhance the regions transport infrastructure, facilitate the efficient movement of commodities, and contribute to the areas economic growth.

Other business development initiatives

The Company focused on increasing cargo volumes in newly operationalised projects in FY 2022–23, such as the coal port in Paradip, Odisha, and the container terminal in Mangalore, Karnataka, as well as by investing in marketing initiatives at the existing terminals. In FY 2022–2023, activities at the Paradip Coal Terminal and Mangalore Container Terminal completed their first full year. The Company also concentrated on non-group (third-party) cargo, which has increased two-fold since the last year. These initiatives led to an overall 50% increase in cargo volume, 40% increase in revenue, and 48% increase in EBITDA in the fiscal year 2022–2023.

All India Ports cargo volume has barely increased by 8.6% in comparison to JSW Infrastructures volume. The Companys emphasis on port-based sectors, such as LPG, chemical plants, refineries for edible oils, and bitumen refineries among others, promotes growth and expands prospects in the hinterlands we serve.

Through strategic acquisitions, participation in PPP projects at major ports, and greenfield and brownfield expansions, the Company continued its efforts to increase its capacity. When opportunities arose through the PPP bidding process, the Company carefully assessed them and capitalised on them. The Company strives to equip ports with advanced technology and cutting-edge infrastructure to accommodate larger ships to make operations more affordable and client-friendly. This is in accordance with the governments objective to lower the overall logistic cost as well as time, while enhancing operational efficiency.

As the Company benefits from the success of the Group companies, the group cargo gives it additional growth opportunities. The Company has begun establishing its presence in end-to-end logistics solutions, such as warehousing, logistics via road transportation, coastal movements, transportation through slurry pipelines, and availability of railway wagon, which provide a one-stop solution to its end customers.

Additionally, the Company intends to expand its clientele by increasing the involvement of third-party cargo operations. Third-party freight reached its highest volume in FY 2022–23, and its percentage share of all handled cargo rose to 36%. Among the main products that went into the commercial cargo were sugar, gypsum, molasses, coal, and fertilisers. The Companys third-party cargo base will be further diversified by the establishment of a liquid storage tank farm and liquid berths at Jaigarh Port, which the Company has already started discussing with major clients.

In order to expand its capacity for containers to four lakh TEUs, the Company is also investing in the Phase-II extension project of its container terminal at Mangalore. The handling of third-party goods, solving connectivity problems, and expanding operations to allow huge ships at the port will require further investments.

Bulk and liquid cargo are the primary cargo types handled at the ports. The Companys port services include handling intraport transit, storage, other value-added services, and evacuation for a wide range of clients, including terminal operators, shipping lines and agencies, exporters, importers, and other port users. By doing so, the Company can more effectively compete, diversify its revenue streams, stop revenue leakage, and lower financial risks.

Financial highlights

The consolidated financial statements of the Company incorporate the financial performance of its following subsidiaries:

• JSW Jaigarh Port Limited (JPL)

• South West Port Limited (SWPL)

• JSW Dharamtar Port Private Limited (DPPL)

• JSW Terminal (Middle East) FZE

• Masad Infra Services Private Limited

• Nandgaon Port Private Limited

• JSW Shipyard Private Limited

• JSW Mangalore Container Terminal Private Limited

• Jaigarh Digni Rail Limited

• JSW Salav Port Private Limited

• JSW Paradip Terminal Private Limited (PTPL)

• Paradip East Quay Coal Terminal Private Limited (Paradip EQ)

• Southern Bulk Terminals Private Limited

• Ennore Bulk Terminal Private Limited

• Ennore Coal Terminal Private Limited

• Mangalore Coal Terminal Private Limited

Standalone financials

Standalone total income increased by 40.3%_during the fiscal year to_ H 828_crore. Earnings before interest, tax, depreciation and amortisation

(EBITDA) stood at H 515 crore. Net profit stood at H 53 crore.

Consolidated financials

Consolidated total income increased by 41.7% during the fiscal year to H 3,373 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at H 1,798 crore. Net profit stood at H 750_crore.

Key financial highlights

Metric	FY 2022-23	FY 2021-22	FY 2020-21
Revenue from operations	3,195	2,273	1,604
Revenue Growth (%)	40.55%	41.71%	40.28%
Total Income	3,373	2,379	1,678
Operating EBITDA	1,620	1,109	816
Operating EBITDA Margin (%)	50.71%	48.79%	50.87%
EBITDA	1,798	1,215	891
EBITDA Margin (%)	53.32%	51.07%	53.10%
Profit for the period / year after tax (PAT)	750	330	285
PAT Margin (%)	22.22%	13.87%	16.98%
Net Worth	3,935	3,212	2,831
Net Debt	2,216	3,331	3,609
Net Debt to Operating EBITDA	1.37	3.00	4.42
Net Debt to Equity (Gearing Ratio)	0.54	0.96	1.17
Return on Equity (RoE) (%)	18.33%	9.52%	9.22%
Return on Capital Employed (RoCE) (%)	19.49%	10.88%	8.15%
EPS (H)	4.12	1.82	1.62
Operating Cash Flow	1,797	1,176	990
Installed Capacity (MMT)	158.43	153.43	119.23
Capacity Utilisation (%)	56.88%	38.41%	35.19%
Total cargo volume handled (MMT)	92.83	61.96	45.55
Total Cargo Growth (%)	49.81%	36.03%	33.93%

Subsidiary financial summary

Particulars	JPL at Ratnagiri	SWPL at Goa	DPPL at Dharamtar	PTPL at Paradip	PEQTPL at Paradip	JSW Terminal (Middle East) FZE	Ennore coal at Ennore	Ennore bulk at Ennore	Mangalore Coal at Mangalore	Mangalore Container at Mangalore
Cargo Handled (MMT)	20.24	7.07	24.04	9.52	12.03	11.78	8.70	1.89	4.45	2.17
Total Income (C crore)	1,303.6	355.5	479.7	310.0	247.2	20.7	327.7	57.3	169.0	75.5
EBITDA (C crore)	803.2	163.9	307.5	110.1	86.1	8.4	58.8	4.5	83.2	26.6
Net Profit (C crore)	428.1	58.5	230.2	15.9	(51.6)	8.4	27.2	(30.1)	8.2	2.7

Prioritising sustainability

Adopting sustainable business practices has become an imperative for businesses across the globe. In line with this, the Company considers sustainable growth as its responsibility to serve all stakeholders in a sustainable manner. The Companys business strategy entails a balanced optimisation of financial outcomes, environmental protection and an abiding pledge to serve society through its targeted initiatives in community development.

Rising awareness about global warming and climate change has led the Company to identify climate change mitigation as one of its key focus areas. To address this concern, the Company has set precise greenhouse gas (GHG) emission reduction targets that are aligned with Indias Nationally Determined Contribution targets. These objectives are intended to minimise emission intensity in accordance with the Paris

Agreement. By concentrating on these objectives, the Company aspires to contribute to global efforts to reduce climate change and promote sustainable practices.

The Company has significantly reduced the intensity of its GHG emissions. We reduced GHG intensity by 10.4% compared to the baseline of FY2020–21. The Companys green initiatives includes obtaining renewable energy, which currently constitutes up about 4.5% of all electrical energy used at Ennore.

Information technology

The Company is dedicated to providing efficient operations through cutting-edge technologies, competitive infrastructure, and increased automation. To acquire real-time information at each of its ports and port terminals, the Company has implemented industry- and trade-specific software solutions.

For its port management system, the Company employs iPortman, while Oracle is utilised for fulfilling its database requirements. Java is used for front-end planning tasks, including vessel planning, yard planning, operations management, marine operations, invoicing and generating online reports, which are subsequently made available to customers. The Company leverages advanced technology to optimise costs and enhance performance, with the aim of maximising efficiency across its operations.

The Company implements the latest technology across various stages of project execution, ranging from bidding and design to project management, operations, collaborations and project closure. By employing technology at each step, the Company aims to streamline processes, enhance collaboration, and deliver quality services to its clients.

Key initiatives undertaken in FY 2022-23

• Real-time data extraction is made possible by the port management system, ensuring smooth operations at ports and terminals.

• A security gate automation system has been created to track and manage vehicle access to the Companys properties.

• Real-time tracking of export cargo loading and unloading through a user-friendly dashboard.

• The state-of-the-art visitor management system and facial attendance system enhance the security and monitoring of the facilities.

Sales and marketing

The Companys sales and marketing strategy is focused on promoting its port services business, gaining deeper insights into customer needs and providing comprehensive port-infrastructure solutions. The Company prioritises securing long-term business understanding and fostering enduring relationships with its clients.

Sales and marketing teams are located at ports and key business centres such as Mumbai, Chennai and Mangalore. To cater to specific customer needs, these teams collaborate with service and cargo experts to create or customise service offerings. Moreover, a team of sales support professionals provides further assistance to the sales teams. The sales teams work with the relevant service or cargo experts and the sales support team to identify potential customers. By leveraging the expertise and support of these specialised teams, the Company aims to establish and nurture mutually beneficial relationships with customers, positioning itself as a trusted provider of end-to-end port-infrastructure solutions.

Human resource

The Company understands the importance of human capital for its success and is dedicated to investing in its people. It aspires to be recognised as a preferred employer by cultivating a culture that encourages individual goal-setting, consistent improvement and health and safety awareness. Recognising the pivotal role of its talent pool in a dynamic operating environment, the Company acknowledges the necessity of credible, transparent and consistent people management practices. To adapt to evolving industry trends, the Company consistently evaluates and updates its people management practices, ensuring their relevance and employee-centric nature.

The Company follows a comprehensive approach to organisational development, focusing on attracting, retaining and developing talent. This includes the induction of young individuals from engineering and management institutes, in-house training programmes and training sessions at plant locations. Continuous investments are made to enhance technical capabilities, and the Company provides its workforce with various learning and development opportunities to acquire new skills and knowledge.

Total employees (As on March 31, 2023)

Read more details about Human Resource on page 66

Corporate Social Responsibility

The Company is making dedicated efforts to empower communities and promote sustainable livelihoods. This objective is effectively pursued through the thought leadership and implementation efforts of the JSW Foundation, which is entrusted with the Corporate Social Responsibility (CSR) mandate for the JSW Group. Over time, the Company has consistently made prudent investments in initiatives aimed at improving living conditions, advancing social development, addressing social inequalities, tackling environmental issues and supporting rural development projects. These initiatives cover various areas such as health and nutrition, education, livelihood and skill development, among others.

To successfully implement these initiatives, the Company divides its interventions into two categories: the Direct Impact Zone (DIZ) and the Indirect Impact Zone (IIZ). The classification is determined by the location of the Companys facilities and the local communities. The DIZ is expected to expand in tandem with the growth of the Companys operations. When identifying areas for social interventions, the Company conducts a comprehensive needs assessment, encompassing both quantitative and qualitative indicators, to ensure the ability to measure the impact of its initiatives.

CSR policy

The Company CSR efforts are not only limited to the communities residing in proximity to its operations, but also extend beyond them. To ensure effective oversight and evaluation of all CSR initiatives, CSR

Committee comprising some of the Board members is responsible for approving and periodically reviewing the progress of the initiatives undertaken.

Key initiatives implemented in FY 2022-23

• Collaboration with Mo School Abhiyan

• Anganwadi model development of local school

• JSW Udaan scholarship for higher education

• Supporting Community Healthcare Centre (CHC)

• Development of an Urban Primary

• Healthcare Centre (PHC)

• Vision Correction Programme

• Youth Skill Development initiative

• Women-led microenterprise development initiative

Read more details about CSR on page 74

Risk management system

The Company has a robust Risk Management Policy in place to ensure sustained business growth and sound corporate governance. This policy applies to all functions of the Company and helps establish a process for identifying and managing key risks in compliance with the provisions of the Companies Act, 2013. Risk Committee of the Board of Directors is responsible for driving the development, implementation and monitoring of the Companys risk management strategy.

Please refer Corporate Governance section for details.

Enterprise risk management

The Company acknowledges that all businesses are susceptible to both internal and external risks, including compliance-related, operational, strategic and so on. A majority of these risks are inherent in the organisational framework of any company and have the potential to disrupt its operations and hinder the achievement of its objectives. The Company assumes the responsibility of recognising and addressing risks and opportunities to ensure value creation for its stakeholders.

Additionally, the Company employs a risk-based approach to manage its operations to effectively address various risks encountered by the organisation. This approach is implemented to ensure the successful realisation of the Companys strategic, operational, reporting and compliance objectives.

Read more details about risk management on page 42

Ethical behaviour

The Company considers ethical behaviour to be an inherent part of its business practices. It strictly adheres to all regulatory laws and corporate governance guidelines, while also adhering to global best practices. Guided by the JSW Groups ethics policies, the Company implements ethical and fair business practices throughout its operations. To ensure this, it regularly communicates its ethical standards and makes its workforce aware of its Code of Conduct.

To facilitate the reporting of any concerns regarding unethical behaviour, fraud, violations of the Code of Conduct or ethics policy, or any other improper activities, including the misuse of accounting policies, misrepresentation of accounts and financial statements, or incidents of actual or suspected leaks of unpublished price-sensitive information, the Company has established a vigil mechanism. This mechanism allows Directors and team members to approach the Ethics Counsellor/Chairman of the Audit Committee of the Board to report such concerns. The Companys vigil mechanism includes policies such as the Whistle-Blower Policy, the Gift and Hospitality Policy, and the Conflict-of-Interest Policy for employees. It ensures that any suspected or actual violations of its Code are promptly reported, thoroughly investigated and appropriate actions taken to resolve them.

Being committed to upholding the highest standards of ethical, moral, and legal conduct in our business operations, the Company encourages its people to come forward and express any genuine concerns they may have about suspected misconduct without fear of punishment or unfair treatment.

The Company has implemented the following measures to raise awareness regarding the Whistleblower Policy and the overall vigilance mechanism:

• Quarterly communication from the Desk of Group HR to make employees aware of the policy

• Display of email address and Toll-Free Phone numbers at prominent places in the offices and plant locations

• Awareness on Whistle-blower policy for new joiners during their induction

Safety initiatives

The Company remains steadfast in its commitment to providing a healthy and safe working environment for its personnel, contractors, customers and visitors, both on its premises and in areas affected by its operations. Its primary objective is to comply with all relevant health and safety legal requirements, while striving to achieve an injury-free workplace, following a ‘zero harm philosophy. To accomplish this, the Company diligently adheres to the highest standards of health and safety management practices across its operations.

Key initiatives in FY 2022-23

• Undertook a Special Drive to enhance workplace safety.

• Delivered over 1600 man-hours of safety training.

• Implemented a Grid Auditing system/Contractor Field Safety Audit.

• Implemented 14 Safety Kaizens proposed by employees.

• Awarded the esteemed H&S ‘Platinum category Occupational Health and Safety Award

Internal control system and audit

A comprehensive framework for internal control and audit, suitable in proportion to the size and characteristics of the business, is an inseparable component of the Companys corporate governance principles. Within JSWIL, internal control systems hold an integral position in its corporate governance framework. The Companys well-established Internal Audit and Assurance Services, comprising proficient finance professionals, engineers and experienced executives with expertise in SAP, diligently conduct thorough audits throughout the year across all functional domains. They subsequently provide their findings to the Management and Audit Committee, focusing on adherence to internal controls, operational efficiency and effectiveness, as well as key process assessment and risk evaluation.

Some significant features of the internal control systems include:

• Adequate documentation of policies, guidelines, authority and approval procedures covering all the important functions of the Company

• Deployment of an ERP system that covers most of the Companys operations and is supported by a defined online authorisation protocol

• Ensuring complete compliance with laws, regulations, standards, internal procedures and systems

• Ensuring the integrity of the accounting systems and the proper and authorised recording and reporting of all transactions

• Preparation and monitoring of annual budgets for all operating and service functions

• Ensuring the reliability of all financial and operational information

• The Audit Committee of the Board of Directors, where

Independent Directors comprise the majority, regularly reviews audit plans, significant audit findings, the adequacy of internal controls and compliance with Accounting Standards

• A comprehensive Information Security Policy and continuous updating of IT systems

The primary objective of the internal control systems and procedures is to effectively identify and mitigate risks, ensure adherence to established procedures and foster a heightened sense of control awareness.

Internal control systems and their adequacy

The Company has established and implemented robust safeguards, internal control mechanisms and risk management processes that are proportionate to the nature of its business, as well as the scale and intricacy of its operations. Suitable internal control policies and procedures have been put in place to offer reasonable assurance regarding the following aspects:

• Effectiveness and efficiency of our operations

• Reliability of financial reporting

• Compliance with applicable laws and regulations

Adherence to these policies and procedures is seamlessly integrated into the management review process. Additionally, we regularly perform comprehensive evaluations to ensure their ongoing relevance and comprehensiveness. Any deviations from the prescribed processes are systematically identified and addressed by identifying their root causes.

The Company consistently evaluates the efficacy of its internal controls across various functions and locations through comprehensive internal audit exercises that employ a blend of contemporary and conventional audit tools. The Audit Committee reviews the internal audit programme to ensure comprehensive coverage of the pertinent areas. Proactive measures are taken to ensure compliance with forthcoming regulations by deploying cross-functional teams.

TheCompanyleveragesadvancedtechnologiestominimiseerrorsand lapses, detect significant trends through data analysis and monitor essential compliance requirements. It has established Standard Operating Procedures and policies to provide guidance for the operations of each function. Business heads bear the responsibility of ensuring compliance with these policies and procedures. Vigorous and continuous internal monitoring mechanisms are in place to promptly identify risks and issues. The management, statutory auditors and internal auditors have conducted thorough due diligence on the Companys control environment through rigorous testing.

Internal audit

The Company engages in the internal audit services of the JSW Group, which reports to the Audit Committee, which consists of primarily of Independent Directors who possess expertise in their respective domains. It has effectively incorporated the COSO framework into its audit procedures to enhance the integrity of its financial reporting, aligned with ethical business practices, efficient controls and sound governance.

The Company adopts a comprehensive approach to delegation of authority throughout its team, thereby establishing robust checks and balances within the system to address any potential loopholes. The internal audit team enjoys unrestricted access to all organisational information, a capability largely facilitated by the implementation of an Enterprise Resource Planning (ERP) system across the entire organisation.

Significant audit observations and the corresponding corrective actions are reported to the Audit Committee. The Audit Committee convenes meetings to review the reports presented by the Internal Auditor. Furthermore, the Audit Committee conducts regular independent sessions with the statutory auditor and the Management to discuss the adequacy and effectiveness of internal financial controls.

Statutory compliance

The Company has established comprehensive systems and processes to ensure full compliance with all relevant laws. The Company Secretary assumes the responsibility of implementing these systems and processes to monitor compliance and ensure their effective operation. At each meeting, the Chief Executive Officer and Managing Director present a certificate of compliance with the applicable laws to the Board. Additionally, the Company Secretary affirms compliance with the Company law and other laws that are applicable to the Company.

Audit plan and execution

The Group Internal Audit Team formulates a risk-based audit plan, determining the frequency of audits based on the risk ratings assigned to different areas or functions. After consulting with the statutory auditors, the plan is approved by the Audit Committee and implemented by the Group Internal Team. Regular reviews of the plan encompass areas that have gained significance in alignment with emerging industry trends and the organisations growth plans. Moreover, the Audit Committee incorporates additional areas into the audit plan based on feedback from internal customers and external events.

Cautionary statement

The statements in this section include descriptions of the Companys objectives, projections, expectations and estimations, which may be considered ‘forward-looking statements as defined by relevant securities laws and regulations. These forward-looking statements are based on certain assumptions and expectations regarding future events. However, the Company cannot guarantee the accuracy of these assumptions and expectations, nor can it ensure their realisation. Actual results may significantly differ from those expressed or implied in the statement, primarily due to the influence of external factors beyond the Companys control. The Company disclaims any responsibility to publicly amend, modify, or revise any forward-looking statements based on subsequent developments, information, or events.

Notice is hereby given that the Seventeenth Annual General Meeting of JSW Infrastructure Limited (CIN: U45200MH2006PLC161268) will be held on Wednesday, 6th September, 2023 at 11.30 a.m at JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051 to transact the following businesses:

ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited Standalone Financial Statements of the Company for the financial year ended 31st March, 2023, together with the Reports of the Board of Directors and the Auditors thereon and the Audited Consolidated Financial Statements of the Company for the financial year ended 31st March, 2023, together with the Report of the Auditors thereon, and, in this regard, to consider and if thought fit, to pass the following resolution as an Ordinary Resolution:

"RESOLVED THAT the Audited Standalone Financial Statements of the Company for the financial year ended 31st March, 2023, together with the Reports of the Board of Directors and Auditors thereon and the Audited Consolidated Financial Statements of the Company for the financial year ended 31st March, 2023, together with the Report of the Auditors thereon, as circulated to the Members be and are hereby received, considered and adopted".

2. To appoint Mr. Kantilal Narandas Patel (DIN: 00019414), who retires by rotation as a Director and being eligible, offers himself for re-appointment, and in this regard, to consider and if thought fit, to pass the following resolution as an Ordinary Resolution:

"RESOLVED THAT in accordance with the provisions of Section

152 and other applicable provisions of the Companies Act, 2013 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), Mr. Kantilal Narandas Patel (DIN: 00019414), who retires by rotation as a Director at this Annual General Meeting, and being eligible, offers himself for re-appointment, be and is hereby re-appointed as a Director of the Company whose period of office shall be liable to determination by retirement of Directors by rotation".

Registered Office: JSW Centre,	By order of the Board of Directors
Bandra Kurla Complex,	For JSW Infrastructure Limited.
Bandra East, Mumbai - 400 051
CIN: U45200MH2006PLC161268	Sd/-
	Gazal Qureshi
Place: Mumbai	Company Secretary
Dated : 1st August, 2023	(M No: A16843)