A leading power company in India focuses on generating, transmitting, and trading electricity, with a strong emphasis on renewable energy sources like thermal, hydro, wind, and solar. The stock is in focus after the JV with South Korea’s LG Energy Solution to manufacture EV batteries and renewable energy storage.
Stock Movement:
With a market capitalization of Rs. 1,19,014.29 crore, the shares of JSW Energy Limited were trading at Rs. 680.95 per equity share, down nearly around 0.53 percent from its previous day’s close price of Rs. 684.55.
What Happened
JSW Energy Limited is in discussions with South Korea’s LG Energy Solution to establish a joint venture focused on manufacturing batteries for electric vehicles and renewable energy storage.
The venture could involve an investment exceeding $1.5 billion and plans to set up a plant in India with a 10-gigawatt-hour capacity. JSW Energy is expected to utilize about 70% of the capacity for energy storage and electric vehicles, while LG Energy Solution will take the remaining share.
Future Outlook:
JSW Energy currently operates a total capacity of 7.9 GW, derived from thermal, hydro, and renewable energy plants. The company plans to expand its capacity to 10 GW by 2025. Additionally, JSW Energy has 16.2 GWh of storage capacity, utilizing both battery storage and hydro-pumped storage systems.
The company aims to reach 20 GW of generation capacity and 40 GWh of storage by 2030. As part of its long-term sustainability strategy, JSW Energy is committed to achieving carbon neutrality by 2050.
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Product Portfolio:
The company’s energy mix includes 3,508 MW of thermal, 2,152 MW of wind, 1,391 MW of hydro, and 675 MW of solar power. JSW Energy is also constructing 2.1 GW of new projects and aims to achieve a total generation capacity of 20 GW by 2030. The company is committed to sustainable growth and creating value for its stakeholders.
Recent Quarter Results:
JSW Energy’s revenue decreased slightly by 1.67% from Rs. 2,928 crore in Q1 FY24 to Rs. 2,879 crore in Q1 FY25. However, the company saw a significant increase in net profit, which grew by 84.14% from Rs. 290 crore in Q1 FY24 to Rs. 534 crore in Q1 FY25.
Over the past five years, JSW Energy’s revenue has grown at a CAGR of 4.68%, while its net profit has increased at a CAGR of 20.32%.
Financial Ratios:
Regarding return ratios, the company reported a return on capital employed (ROCE) of 8.59% and a return on equity (ROE) of 8.40%. The debt-to-equity ratio stood at 1.52, and its earnings per share (EPS) was Rs. 11.7.
About the Company
JSW Energy is a prominent private power producer in India and is part of the USD 24 billion JSW Group. Founded in 2000, the company initially started with two 130 MW thermal plants in Karnataka and has since expanded its operations across power generation and transmission sectors. Today, JSW Energy manages a total capacity of 7,726 MW across the country.
Written By – Nikhil Naik
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