Impressive FY23 growth of this energy company; Should you invest?

Company's assets have increased by 44 percent, and there has been a growth of 72 percent in the value of its assets.

As the demand for energy in India is rising, one such company in the energy sector, JSW Energy Limited declared its results yesterday. JSW Energy focuses on energy generation from solar, wind, hydro, and thermal projects. 

In FY23, the company increased its capacity by 44 per cent from 4559 MW to 6564 MW. The company has under-construction projects of 3115 MW, which are planned to be commissioned by the end of FY24. Currently, the company's renewable operational assets consist of 3447 MW (wind, solar, and hydro) with the rest coming from thermal energy. 

The company significantly increased its assets, such as property, plant, and equipment by 71.83 per cent from Rs 13,422.82 crore to Rs 23,065.01 crore, and their capital work in progress increased by 128.62 per cent from Rs 2090.6 crore to Rs 4779.5 crore. Company borrowing increased from Rs 6876.37 crore to Rs 19,207.90 crore. 

In this financial year, the company has acquired a portfolio of capacity 1753 MW of renewable energy generation from Mytrah Energy Private Limited at an enterprise valuation of approximately Rs 10,150 crores. 

Now, turning to the financial results, in comparison to the same quarter last year, the company's total revenue for the fourth quarter that ended on March 31, 2023, increased from Rs 2654.61 crore to Rs 2805.72 crore on a consolidated basis. In Q4FY23, the company's net profit decreased from Rs 877.44 crore to Rs 282.03 crore in the same quarter the year before. 

The company reported a 24.39 per cent increase in net sales for the year ended March 31, 2023, from Rs 8,736 crore to Rs 10,867 crore on a consolidated basis. When compared to the year ended March 31, 2022, the company's net profit decreased from Rs 1743.48 crore to Rs 1480.12 crore in the previous year. 

In the last trading session, the stock closed at Rs 248.05. Currently, it is trading at Rs 249.40, up by 0.54%. The company has a market cap of around Rs 41,000 crore.