JSW Energy stock hits new all-time high as subsidiary wins 300 MW wind-solar hybrid project

JSW Energy strengthens energy solutions with a 300 MW project, aiming for 9.8 GW capacity by CY24. Company ventures into green hydrogen and targets carbon neutrality by 2050.

A Ksheerasagar
Published24 Jun 2024, 10:21 AM IST
The company's net generation increased by 27% year-on-year (YoY) to 27.9 billion units (BUs) in FY24, driven by higher renewable energy and thermal power generation.
The company’s net generation increased by 27% year-on-year (YoY) to 27.9 billion units (BUs) in FY24, driven by higher renewable energy and thermal power generation.(Photo: Reuters)

JSW Energy shares hit a new all-time high of 740 apiece by gaining 2.25% in today's early morning trade after the company announced that its wholly owned subsidiary -JSW Neo Energy Limited received a Letter of Award (LoA) for setting up a 300 MW ISTS-connected wind-solar hybrid power project from Solar Energy Corporation of India Limited (SECI) against a tariff-based competitive bid invited for setting up 1,200 MW ISTS-connected wind-solar hybrid power projects (Tranche VIII).

Subsequent to this capacity award, the company's total locked-in capacity increases to 13.6 GW. The company expects to have an installed generation capacity of 9.8 GW by CY24, up from 7.3 GW currently.

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With this hybrid project, the company strengthens its energy solution offerings while moving towards an energy products and services company.

The company said it has a total locked-in generation capacity of 13.6 GW, comprising 7.3 GW operational, 2.6 GW under construction across wind, thermal, and hydro, and a pipeline of 3.7 GW. In addition, the company has 3.4 GWh of locked-in energy storage capacity through a battery energy storage system and hydro-pumped storage project.

Exploring new opportunities for India’s clean energy transition

The company is tapping into a significant clean energy market opportunity in India, positioning itself as a front-runner in the future hydrogen economy. It has signed an offtake agreement with JSW Steel for 3,800 tonnes per year of green hydrogen. Additionally, the company has been allotted 6,500 tonnes per year under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program.

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In the energy storage (hydro-pumped storage and battery energy storage) space, it is targeting 40 GWh / 5 GW of energy storage capacity by 2030, aiming to be a leading player in energy storage solutions.

Further, the company is foraying into green hydrogen and its derivatives, including downstream chemicals like green methanol, ethanol, and sustainable aviation fuel. Additionally, it is developing a value chain to de-risk its supply chain by venturing into solar module and wind turbine generator (WTG) manufacturing.

JSW Energy has set an ambitious target of achieving carbon neutrality by 2050.

In its first-ever equity raise since listing in 2010, the company raised 5,000 crores through a Qualified Institutions Placement (QIP) in April 2024. The proceeds from the QIP are designated for repaying the company’s borrowings, investing in JSW Neo Energy Limited (a wholly-owned subsidiary), and other general corporate purposes.

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Record performance in FY24

The company's net generation increased by 27% year-on-year (YoY) to 27.9 billion units (BUs) in FY24, driven by higher renewable energy and thermal power generation. Total renewable generation rose by 54% YoY to 9.3 BUs, while thermal generation increased by 17% YoY.

Total revenue increased by 10% YoY to 11,941 crore in FY24. The company recorded its highest-ever EBITDA and the second highest-ever profit after tax (PAT) in its history.

EBITDA grew by 53% YoY to 5,837 crore, driven by additions to its renewable energy asset base and strong performance in the thermal business. This resulted in a 17% YoY growth in PAT, reaching 1,723 crore in FY24.

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Liquidity remained robust, with cash and cash equivalents of 4,691 crore as of March 2024. Today, JSW Energy boasts one of the strongest balance sheets in the sector, providing it with the flexibility to pursue value-accretive growth opportunities, the company said in its FY24 annual report.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

 

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₹68,885 Cr

3.15L

48%

₹6.7 T

$240.5 M

$459 M

$3 B

₹588.25 Cr

₹20,000 Cr

7.93 Cr

₹8,943 Cr

10%

20 Yrs

First Published:24 Jun 2024, 10:21 AM IST
HomeMarketsStock MarketsJSW Energy stock hits new all-time high as subsidiary wins 300 MW wind-solar hybrid project

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