JSW Energy to invest Rs. 6500 cr in manufacturing EV

JSW Energy is planning to invest about Rs. 6,500 crore in manufacturing of electric passenger cars. The company is already in discussion with leading global OEMs and engineering service providers on product and technology partnerships for electric vehicles.

The company reported robust growth in its December quarter net profits to Rs. 146 crore, compared to Rs. 47 crore in the year earlier period due to better realisations from both merchant and PPA customers.

According to management, The company plans to invest about Rs. 6,500 crore in the electric vehicle space to focus on manufacturing of passenger cars. There will be a significant development in this space in the fourth quarter. The rise in profits were reported on 20% growth in revenues and EBITDA to Rs. 2,492 crore and Rs. 809 crore respectively.

The fuel cost for the quarter increased by 24% to Rs. 1,447 crore, as rupee depreciation further aggravated by increase in imported coal prices. Finance costs declined to Rs. 295 crore from Rs. 341 crore in the corresponding quarter of the previous year due to proactive repayment of borrowings.

The consolidated net worth and consolidated net debt as on December 31, 2018, stood at Rs. 11,904 crore and Rs. 10,686 crore respectively resulting in a net debt to equity ratio of 0.90x.

On Thursday, the JSW stock opened at Rs. 68.60 per share and touched high/low of 68.80/67.90 per share.