Power stock engaged in the business of generation, transmission, and trading of power with a major focus on renewable energy in focus upon signing a Power Purchase Agreement with Gujarat Urja Vikas Nigam Limited for a 192 MW Wind-Solar Hybrid Power Project
Price Action
With a market capitalization of Rs. 1,18,079 Crores, the shares of JSW Energy Limited were trading at Rs. 675.60 per equity share, down 2 percent from its previous day’s close price of Rs. 689.20.
What heppened
JSW Energy Limited’s step-down subsidiary JSW Renew Energy Seventeen Limited has signed its first Power Purchase Agreement (“PPA”) with Gujarat Urja Vikas Nigam Limited for an STU-connected 192 MW Wind-Solar Hybrid capacity.
The PPA is signed for the supply of power for a period of 25 years with a tariff of Rs. 3.27/kWh, with the project expected to be commissioned within 24 months and it will be connected to the STU in Gujarat. The company currently has a project pipeline capacity of 8.3 GW with PPA signed for 3.2 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 18.2 GW comprising 7.7 GW operational, 2.1 GW under construction across the wind, thermal, and hydro, and a renewable energy pipeline of 8.3 GW.
JSW Energy Limited currently has a 16.2 GWh of locked-in energy storage capacity through battery energy storage systems and hydro-pumped storage project, and it aims to reach 20 GW generation capacity and 40 GWh of energy storage capacity before 2030.
Financials and Ratios
Its revenue from operations declined by 1.65 percent from Rs. 2,928 Crores in Q1FY24 to Rs. 2,879 Crores in Q1FY25, accompanied by profits of Rs. 290 Crores to Rs. 534 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 8.6 percent. It has reported a debt-to-equity ratio of 1.52.
Written by: Bharath K.S
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