The shares of the leading power generation company gained up to 2 percent after the company’s subsidiary inked a power purchase agreement for solar capacity.
With a market capitalization of Rs 1.23 lakh crore, the shares of JSW Energy Ltd were trading at Rs 705.50 per share, decreasing around 0.26 percent as compared to the previous closing price of Rs 706.85 apiece.
Reason for rise:-
According to the company filing, JSW Renew Energy Thirteen Limited, a step-down subsidiary of JSW Energy Ltd inked a power purchase agreement with NTPC Limited (“NTPC”) for an ISTS/STU-connected solar capacity of 700 MW.
Moreover, the power supply agreement (PPA) is for 25 years and has a rate of ₹2.59 per kWh. The aforementioned project is projected to be operational by June 2026. The current solar pipeline capacity is 3.2 GW, with PPAs signed for 2.0 GW.
JSW Energy has a total generation capacity of 18.2 GW, including 7.7 GW operational and 2.1 GW under construction across wind, thermal, and hydro projects. Additionally, it has a renewable energy pipeline of 8.3 GW, positioning itself for significant growth in clean energy.
The company also holds 16.2 GWh of energy storage capacity through battery energy storage and hydro-pumped storage projects. With a goal to reach 20 GW generation capacity and 40 GWh storage capacity by 2030, JSW Energy is committed to achieving carbon neutrality by 2050.
Financial analysis:-
Analyzing the company’s financial condition, revenue shrunk by 2 percent from Rs 2,928 crore in Q1FY24 to Rs 2,879 crore in Q1FY25, during the same time frame net profit jumped by 84 percent from Rs 290 crore to Rs 534 crore.
Power sector overview:-
The power sector saw exceptional growth, with GDP increasing by 8.2% in FY24 and manufacturing growing by 9.9%, underscoring the sector’s critical role. Power demand rose 7.5% in FY24, with a peak demand of 250 GW in May 2024, while thermal PLF improved to 76.4% in Q1 FY25.
India’s installed capacity reached 446 GW, with 4.2 GW added in Q1 FY25. Renewable energy capacity grew by 4.4 GW, led by 3.7 GW of solar and 800 MW of wind. The government targets 30-35 GW of renewable capacity additions and higher renewable consumption under RPO obligations by 2030.
Capacity Addition:-
JSW Energy added 291 MW of wind capacity in Q1 FY25, boosting total generation by 18% year-on-year to 7.9 billion units. Renewable energy generation surged 44%, with hydro output up 61% due to better hydrology, while thermal generation rose 4%, led by Ratnagiri and Utkal Unit-1.
Future outlook:-
Management remains optimistic about growth in the evolving power sector and aims to reach 10 GW capacity by FY25, with 20 GW before 2030. The company focuses on bespoke solutions for hybrid power and FDRE projects, leveraging rising demand for customized energy offerings.
Company profile:-
JSW Energy Limited generates power using both thermal and renewable sources. Its segments include Thermal, which generates power from coal and other thermal sources (lignite, gas, and oil) through owned facilities and related auxiliary services, and Renewables.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
.
