A leading power company in India’s energy sector engages in the generation, transmission, and trading of power, with a significant emphasis on renewable energy sources such as thermal, hydro, wind, and solar energy. Recently, it signed a Power Purchase Agreement with Maharashtra State Electricity Distribution Company Limited for a 1,200 MW Wind-Solar Hybrid Power Project.
Stock Movement
With a market capitalization of Rs. 1,18,122.93 crore, the shares of JSW Energy Limited were trading at Rs. 675.85 per equity share, raising nearly around 1 percent from its previous day’s close price of Rs. 676.55.
What Happened
JSW Energy Limited’s step-down subsidiary of JSW Renew Energy Six Limited and JSW Renew Energy Thirty Limited have signed their Power Purchase Agreement (“PPA”) with Maharashtra State Electricity Distribution Company Limited (“MSEDCL”) for an STU-connected of two Wind-Solar Hybrid capacity of 600 MW each, which has a total capacity of 1,200 MW.
The company received Letters of Award for two projects on August 29 and September 10, 2024, establishing agreements for a 25-year period at a tariff of ₹3.60/kWh. These projects are set to be commissioned within 24 months and will connect to the State Transmission Utility (STU) in Maharashtra.
Currently, the company boasts a robust project pipeline of 8.3 GW, with Power Purchase Agreements (PPAs) already signed for 4.4 GW, positioning it strongly in the renewable energy sector.
Future Outlook
JSW Energy Limited aims to significantly expand its operations under its Strategy 2.0 initiative. By 2025, the company targets a generation capacity of 10 GW, with 85% of this capacity secured under long-term Power Purchase Agreements (PPAs).
Looking ahead, JSW plans to achieve 20 GW of generation capacity and 40 GWh of storage by 2030, alongside establishing 1 GW of PV module manufacturing by April 2025.
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About the Company
JSW Energy Limited was established in 1994 and is headquartered in Mumbai. The company stands as a leading power company in India’s energy sector. The company is exceptional in power generation through diverse sources, including thermal, hydro, wind, and solar energy. With strategic plant locations across India, JSW Energy operates major
facilities like the 300 MW Baspa hydroelectric plant in the Himalayas and the 1091 MW Karcham Wangtoo plant on the Satluj River.
The company’s operations span the entire energy value chain, from generation to transmission and trading. JSW Energy’s thermal segment utilizes coal, lignite, gas, and oil for power generation, while its renewables division focuses on clean energy solutions. Its well-positioned plants, including the Barmer facility near lignite mines and the Vijayanagar plant in Karnataka, demonstrate the company’s commitment to efficient power generation and distribution across India.
Financial and Ratios
The company’s revenue has increased from Rs. 10,332 crore in FY24 to Rs. 11,486 crore in FY24, which has grown by 11.17 percent. The net profit of JSW Energy Limited has also grown by 16.55% from Rs. 1480 crore in FY23 to Rs. 1725 crore in FY24. JSW Energy Limited’s revenue and net profit have grown at a CAGR of 18.39% and 140.76%, respectively, over the last three years.
In terms of ratios, the company’s ROCE and ROE should be 8.59% and 8.40%, respectively. The debt-to-equity ratio of the company is to be 1.52, and EPS is to be Rs. 11.7.
Written By: Nikhil Naik
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