JSW Energy Ltd | Stock Performance Analysis | Company Updates

AngelOne · February 27, 2024, 9:35am

Subsidiary of JSW Energy bags order from SJVN for a solar project; know more here

In the past year company’s shares have yielded multibagger returns of 150.84% and in the same time frame BSE Utilities have changed by 119.23%.

About the LOA

JSW Energy Ltd which is in the business of power generation and distribution today reported that the company has set up a wholly new subsidiary JSW Neo Energy Limited (JSW Neo) which has received a Letter of Award (LoA) for inter-state transmission system (ISTS) connected solar capacity of 700 MW from SJVN Limited, against tariff based competitive bid invited for setting up of 1,500 MW ISTS connected Solar Power Projects.

The project is required to supply power of full contracted capacity within 24 months from the effective date of PPA. Currently, JSW Energy has a total locked-in generation capacity of 11.0 GW comprising 7.2 GW operational, 2.6 GW under construction across wind, thermal and hydro and LoAs for 1.2 GW capacity from SECI (Tranche - XVI) and SJVN.

In addition, the company has 3.4 GWh of locked-in energy storage capacity utilising a battery energy storage system (BESS) and hydro-pumped storage project. The company expects to have 9.8 GW of operational generation capacity by CY2024, up from the current operational capacity of 7.2 GW. The company aims to reach 20 GW of generation capacity and 40 GWh of energy storage capacity by 2030. JSW Energy has set an ambitious target for a 50% reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050.

Stock Performance

In the last trading session, the stock closed at Rs 524. Today it opened at Rs 525.50 and currently trading at 522.95, down by 0.20%. The company’s 52-week high stands at Rs 537.90, while its 52-week low stands at Rs 204.80. Currently, the company boasts a market capitalisation of approximately Rs 86,000 crore. In the past year, the company’s shares have yielded multibagger returns of 150.84% and in the same time frame, BSE Utilities have changed by 119.23%.

About the Company

JSW Energy Ltd is amongst India’s leading independent power producers. The company which is a part of the USD 23 billion JSW Group, is leading the energy transition in India by scaling its renewable energy capacity upwards and foraying into energy products and services. The company sells power through a combination of long-term and short-term power purchase arrangements and power exchanges in India to state-owned utilities, and power trading companies.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

AngelOne · May 8, 2024, 11:52am

JSW Energy Approves Raising Rs.10,000 Cr For Its Expansion Plans

JSW Energy’s strategic growth, raised funds, enhanced MoA, and expansion plans signal strong positioning for sustainable growth in clean energy.

The board of JSW Energy has authorized the raising of funds, up to ₹10,000 crore, through the issuance of eligible company securities via private offerings, to be executed in one or multiple installments.

Financial Performance

JSW Energy Ltd reported a substantial 22.5% year-on-year increase in net profit to Rs.345.3 crore for Q4 ending March 31, 2024, up from Rs.282 crore in the previous year. Revenue from operations rose by 3.2% to Rs.2,755.9 crore compared to Rs.2,670 crore in the corresponding period. EBITDA surged by 56.8% to Rs.1,168.5 crore from Rs.745.3 crore, with the EBITDA margin increasing to 42.4% from 27.9%.

Parameters	Q4FY24	Q4FY23	Change
Net Profit ( Rs. crore)	Rs.345.3	Rs.282	+22.5%
Revenue from Operations ( Rs. crore)	Rs.2,755.9	Rs.2670	+3.2%
EBITDA ( Rs. crore)	Rs.1,168.5	Rs.745.3	+56.8%
EBITDA Margin	42.4%	27.9%	1450 bps

Fundraising Approval and Strategy

JSW Energy’s board has approved of a plan to raise funds of up to Rs 10,000 crore, set to be executed in one or multiple installments. The move comes as part of the company’s strategy to capitalize on opportunities in the clean energy sector, especially amid the availability of clean energy companies up for sale in the market. JSW Energy aims to strengthen its position in the industry and meet its goal of achieving a capacity of 20 Gigawatts by 2030.

The fundraising initiative will employ diverse methods such as private offerings, preferential allotments, or qualified institutions placements. These avenues, permitted under current regulations, will be utilized either individually or in combination, as suitable by the company. In a filing made on May 7, JSW Energy revealed its intention to secure approval from its board members during the forthcoming Annual General Meeting to raise funds as required, with an upper limit of Rs 10,000 crore. The company has further expansion plans with the upcoming funds.

Expansion of Main Objects Clause in Memorandum of Association (MoA)

The board approved amending the Main Objects of the MoA to enhance clarity regarding non-conventional/renewable energy businesses, pending Members’ approval. The amendment will cover newer energy sector areas, including subsidiaries’ engagements and ventures into non-conventional energy businesses like energy storage, renewable equipment, batteries, green hydrogen, and battery technology for electric vehicles. This broadens the company’s scope in evolving energy markets.

Conclusion

JSW Energy is strategically pursuing inorganic expansions with investments, venturing into manufacturing for wind and solar power equipment to mitigate supply chain risks. Additionally, plans for battery storage manufacturing signal a strategic entry into the electric vehicle segment. These initiatives showcase JSW Energy’s strong approach, positioning the company for sustainable growth in an evolving energy market landscape.