Rs 15,000 crore capex plan; This LIC-backed power company announces capacity increase to meet rising energy demand, also plans to start battery storage manufacturing to enter the electric market

The company aims to increase its capacity to 20 gigawatts (GW) by FY30 from the current 7.2 GW, with a planned capital expenditure of Rs 15,000 crore for the current financial year.

JSW Energy, a prominent player in India's power sector, is on an ambitious trajectory to ramp up its capacity to meet the escalating demand for energy. With a strategic focus on scaling up its capacity to 20 gigawatts (GW) by FY30, from the current 7.2 GW, the company has earmarked a substantial capital expenditure of Rs 15,000 crore for the current financial year.

Chief Executive Officer Sharad Mahendra emphasized the company's confidence in achieving a 10-GW capacity milestone by FY25, underscoring the bullish outlook on future demand.

In pursuit of growth, JSW Energy is not only eyeing organic expansion but also exploring inorganic avenues. Backward integration is a key strategy, with plans to venture into manufacturing for wind and solar power equipment to mitigate risks associated with supply chain disruptions.

Moreover, the company is venturing into the burgeoning battery storage business, a critical component in the transition toward renewable energy and electric mobility. Recently, JSW Energy inked a significant agreement with Solar Energy Corporation of India Limited for a standalone battery energy storage system project, indicating its foray into this promising sector. CEO Mahendra has expressed confidence in commissioning the facility by Q1FY26, showcasing the company's commitment to timely execution. To fuel its expansion plans and capitalize on emerging opportunities in the clean energy space, JSW Energy's board has approved raising funds of up to Rs 10,000 crore in one or more tranches.

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JSW Energy Share Performance:

Today the company’s stocks closed the day at Rs 565 per share representing a decrease of 3.23 per cent today. The current market capitalisation of this company stands at Rs 98,748.92 crore.

Shares of this Large-Cap company have delivered impressive returns of around 47 per cent in the past six months only and a multibagger return of around 115 per cent in just one year.

Financial Performance:

As per the Quarterly Results in Q4 FY24, JSW Energy reported revenues of Rs 2,756 crore, reflecting a growth of 3.22 per cent YoY compared to the same quarter in the previous year, when the revenue stood at Rs 2,670 crore. The company posted an operating profit of Rs 1,169 crore for the quarter, in contrast to an operating profit of Rs 739 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net profit of Rs 345 crore, compared to a net profit of Rs 282 crore in the same period last year.

Investors must keep this large-cap multibagger stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.