This JSW Group stock, engaged in the business of generation of power, came into focus on Thursday after signing its largest Power Purchase Agreement with West Bengal State Electricity Distribution.
Stock Performance
With a market capitalization of Rs 90,141.16 crore, JSW Energy Ltd climbed over 1 percent to an intraday high of Rs 523.45 per share compared to its previous closing price of Rs 515.50 per share. The shares retraced and were trading at Rs 515.75, a slight increase compared to the previous close.
What Happened
JSW Energy signed its largest Power Purchase Agreement (PPA) with West Bengal State Electricity Distribution Company Limited for a greenfield 1,600 MW (2 x 800 MW) super/ultra super critical thermal power plant. This also happens to be the largest greenfield capacity power project by the company.
Further, the company has also obtained the Commercial Operation Date (CoD) certificate for Unit 2 of the Utkal thermal power plant (2 × 350 MW), marking its readiness for full-scale commercial operations.
Management Commentary
Commenting on this milestone, CEO Mr. Sharad Mahendra, said “This project is poised to significantly boost local employment opportunities and contribute to the region’s economic growth, while ensuring a stable and reliable power supply for years to come….Both the plants benefit from the strategic advantage of being located near coal blocks, which results in lower operational costs. ”
Company Overview
JSW Energy Limited specializes in thermal and renewable energy generation. Its thermal segment produces electricity from coal, lignite, gas, and oil, while its renewables segment generates power through hydro, wind, and solar energy. The company owns multiple power plants, including Karcham, Barmer, Wangtoo, Vijayanagar, Ratnagiri and Baspa. The company has a locked-in generation capacity of 28.3 GW.
Financial Performance
Looking at the latest financial performance, the company has reported a 4 percent decrease in revenue from Rs 2,543 crore to Rs 2,439 crore in Q3 FY25. This was accompanied by a 32 percent decrease in net profits from Rs 232 crore to Rs 157 crore during the same period.
Written by Shwetha Sairam
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