Green energy stock engaged in the business of generation, transmission, and trading of power jumped 4 percent in the day’s trade upon signing a power purchase agreement for Renewable Energy projects of 1,325 MW.
Price Action
With a market capitalization of Rs. 1,28,670 Crores, the shares of JSW Energy Limited were trading at Rs. 735.40 per equity share, up 3.25 percent from its previous day’s close price of Rs. 712.25.
What Happened
JSW Energy Limited’s wholly owned subsidiary JSW Neo Energy Limited through its subsidiaries has signed Power Purchase Agreements for wind and solar projects with a cumulative capacity of 1,325 MW comprising of 1,025 MW with Solar Energy Corporation of India Limited and 300 MW with Gujarat Urja Vikas Nigam Limited. The total locked-in capacity of the company stands at 13.6 GW
The Power Purchase Agreement of 1,025 MW of wind energy is the largest single tranche PPA signed by Solar Energy Corporation of India Limited. This project has a blended tariff of Rs. 3.62/KWh for the supply of power for 25 years. The said projects are located in Gujarat and Karnataka and are expected to be commissioned within 24 months. This will take the total locked-in wind capacity to 4.8 GW.
The second Power Purchase Agreement of 300 MW solar grid-connected solar capacity with Gujarat Urja Vikas Nigam Limited was awarded under the Gujarat State Electricity Corporation Limited’s RE Park at Khavda. It is to supply power for 25 years with a tariff of Rs. 2.66/KWh. The said project is located in Gujarat and is expected to be commissioned within 21 months and this will take the total locked-in solar capacity to 3.3 GW.
About the Company
JSW Energy Limited is part of the famous Indian conglomerate group the JSW Group, it is engaged in the business of generation, transmission, and trading of power. The company operates in various Indian states including Karnataka, Tamil Nadu, Maharashtra, Gujarat, and many more.
JSW Energy Limited has a total locked-in generation capacity of 13.6 GW comprising 7.3 GW operational, 2.6 GW under construction across the wind, thermal, and hydro, and RE pipeline of 3.7 GW.
It also has 3.4 GWh of locked-in energy storage capacity through the battery energy storage system and hydro-pumped storage project. It aims to reach 20 GW of generation capacity and 40 GWh of energy storage capacity before 2030, with an ambitious target of achieving Carbon Neutrality by 2050.
Financials & Ratios
Its Revenue from operations grew by 3 percent from Rs. 2,669.97 Crores in Q4FY23 to Rs. 2,755.87 Crores in Q4FY24, accompanied by profits of Rs. 282.03 Crores to Rs. 345.27 Crores.
In terms of Return ratios, it has reported a return on equity(ROE) of 8.4 percent and a return on capital employed (ROCE) of 8.59 percent. It has reported a debt-to-equity ratio of 1.52.
Written by: Bharath K.S
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