JSW Group's Energy Company signed a 1,600 MW PPA with WBSEDCL and commissioned Unit-2 of the Utkal Plant - Details inside!
With a PE ratio of 47.8x, the company trades at a premium compared to the industry PE of 28.9x. The company has ROCE of 8.59 per cent and ROE of 8.40 per cent.
JSW Energy Limited is pleased to announce two significant milestones in its journey towards enhancing nation’s energy security. The Company has signed a Power Purchase Agreement with West Bengal State Electricity Distribution Company Limited for a greenfield 1,600 MW (2 x 800 MW) super/ultra super critical thermal power plant. Additionally, for Utkal thermal power plant (2 x 350 MW), the Company has received Commercial Operation Date certificate for Unit 2. This solidifies our commitment of supporting the growing energy demand with reliable and efficient power solutions.
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The 1,600 MW greenfield thermal power project, to be constructed in Salboni, West Bengal, is scheduled for commissioning in 5 years. PPA for the entire 1,600 MW capacity has been signed with WBSEDCL for 25 years. The plant will utilize domestic linkage coal allocated to West Bengal under the SHAKTI B (iv) policy. The commissioning of Unit-2 of Utkal Thermal Power Plant, ahead of the upcoming highdemand season, plays a crucial role in meeting the nation's growing base load demand. The Utkal Thermal Power Plant utilises domestic coal and sells power through the merchant market and bilateral contracts.
Mr. Sharad Mahendra, Joint Managing Director and CEO of JSW Energy “I am pleased to announce the signing of a PPA with WBSEDCL for 1,600 MW thermal plant in Salboni. This is the largest greenfield capacity and the largest PPA signed by JSW Energy. This project is poised to significantly boost local employment opportunities and contribute to the region's economic growth, while ensuring a stable and reliable power supply for years to come. Additionally, we have successfully commissioned Unit-2 of the Utkal Thermal Power Plant, which comes at crucial time as we prepare for the upcoming high-demand season. Both the plants benefit from the strategic advantage of being located near coal blocks, which results in lower operational costs. These milestones not only enhance our operational capacity but also underscore our commitment to energy security and demonstrate our exceptional execution capabilities.”
JSW Energy Ltd and its subsidiaries are primarily engaged in the business of generation of power from its power assets located at Karnataka, Maharashtra, Nandyal and Salboni. It is the holding company for the JSW group's power business. The company also has a JV company engaged in mining activities and an associate engaged in manufacturing of turbines. The company has been maintaining a healthy dividend payout of 20.1 per cent.
In the Quarterly Results of Dec-24, revenue stood at Rs 2,438.88 crore, declining 4.09 per cent YoY and 24.67 per cent QoQ from Rs 2,542.77 crore in Dec-23 and Rs 3,237.66 crore in Sep-24, respectively. Net profit was Rs 167.83 crore, registering a decline of 27.45 per cent YoY and 80.33 per cent QoQ from Rs 231.33 crore in Dec-23 and Rs 853.25 crore in Sep-24. The net profit margin for Dec-24 was 6.88 per cent, compared to 9.10 per cent in Dec-23 and 26.35 per cent in Sep-24.
For the full-year FY24, revenue was Rs 11,485.91 crore, reflecting a growth of 11.17 per cent from Rs 10,331.81 crore in FY23. Net profit increased by 55.47 per cent, reaching Rs 1,894.18 crore compared to Rs 1,252.71 crore in FY23. The net profit margin for FY24 stood at 10.91 per cent, up from 7.80 per cent in FY23.
As of December 2024, the shareholding pattern stands as follows: Promoters hold 69.32 per cent, FIIs hold 14.57 per cent, DIIs hold 10.05 per cent, the public holds 5.92 per cent, and others hold 0.15 per cent.
With a PE ratio of 47.8x, the company trades at a premium compared to the industry PE of 28.9x. The company has ROCE of 8.59 per cent and ROE of 8.40 per cent.
Investors must keep this Large-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.