Tag: JSW Energy

RBI’s stricter project finance rules may impact tariffs, says JSW Energy

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The stricter project finance rules proposed by the Reserve Bank of India (RBI) could have an impact on tariffs, according to Sharad Mahendra, Joint MD and CEO of JSW Energy.

According to the draft rules issued by the central bank, lenders will need to set aside 5% of the loan as general provisions for both existing and new loans in the under-construction phase.

“When we plan for any capex, we have a very robust mechanism of taking care of these kinds of risks. If this comes, ultimately, it is a cost which is going to impact the tariffs because the minimum desired returns are required for the business to be sustainable,” Mahendra said.

JSW Energy on May 7 reported a 23% year-on-year (YoY) jump in net profit to ₹345 crore for January-March period.

“We have been seeing a change in the demand dynamics and the environment especially in the renewable energy space. During the quarter the demand has been good, demand growth continues to be robust,” he said.

The company expects to add close to three gigawatt capacity during the financial year.

Unit one of Ind-Barath has started contributing to the financials. “Unit 2 will be commissioned in the current quarter. We have decided to be in the merchant market seeing the demand scenario. We expect our margins from this plant will be quite decent.”

Also Read | PSU Bank shares like SBI, Canara, PNB fall amid new RBI norms for infra project financing

The company has taken an enabling provision to raise up to ₹10,000 crore via private placement or preferential allotment or qualified institutional placement (QIP).

The company is also setting up a battery storage unit in Rajasthan, and plans to enter into the Wind Turbine Generator (WTG) space.

Its current market capitalisation is ₹93,898 crore.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Energy Q4 profit rises 22%, board declares dividend of ₹2 and okays ₹10,000-crore fundraise

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

JSW Energy Ltd on Tuesday (May 7) reported a 22.5% year-on-year (YoY) jump in net profit at ₹345.3 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, JSW Energy posted a net profit of ₹282 crore, the company said in a regulatory filing. The company’s revenue from operations increased 3.2% to ₹2,755.9 crore against ₹2,670 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA jumped 56.8% to ₹1,168.5 crore in the fourth quarter of this fiscal over ₹745.3 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 42.4% in the reporting quarter compared to 27.9% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Also Read: IRB Infrastructure Q4 Results | Net profit surges 45%, dividend declared

The board has approved the raising of funds not exceeding ₹10,000 crore in one or more tranches, through the issuance of eligible securities of the company by way of private offerings or on a preferential allotment basis or a qualified institutions placement or any other method or combination thereof as may be permitted under applicable laws.

Further, the board has recommended a dividend of ₹2 per equity share of ₹10 (20%) to the members of the company for declaration at the forthcoming 30th annual general meeting. The dividend recommended as above, if declared, shall be paid within 30 days from the date of the AGM.

The results came after the close of the market hours. Shares of JSW Energy Ltd ended at ₹583.85, down by ₹33.95, or 5.50%, on the BSE.

Also Read: Navin Fluorine declares final dividend of ₹7 per share, posts drop in Q4 profit

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Energy arm bags 700 MW solar project from NTPC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

JSW Energy on Saturday said that its arm, JSW Neo Energy, has received a letter of award from NTPC for setting up a 700 MW solar project. JSW Energy’s total locked-in generation capacity has increased to 13.3 GW of which 3.1 GW is solar power, with the latest project win, the company said in a BSE filing.

JSW Neo Energy Ltd, a wholly-owned subsidiary, has received a Letter of Award (LoA) for setting up a 700 MW ISTS-connected Solar Power Project from NTPC Ltd.

The company’s current installed generation capacity is 7.2 GW and expects to have 9.8 GW of installed capacity by CY24.

JSW Energy aims to reach 20 GW generation capacity and 40 GWh of energy storage capacity before 2030.

JSW Energy has set an ambitious target of achieving Carbon Neutrality by 2050.

Sharad Mahendra, Joint MD and CEO, JSW Energy, in a recent conversation with CNBC-TV18, discussed how the rising peak power demand in India presents a huge growth opportunity for the company.

Mahendra said the company’s vision is to be among the leading green energy producers in the country and providing not only green energy but a comprehensive solution to the end customers.

JSW Energy share price performance and income

JSW Energy share price settled at ₹630.45 on with minor gains on Friday. So far this year, JSW Energy has gained nearly 54% and the one-year return on the stock is more than 143%.

JSW Energy reported an over 28% rise in its consolidated net profit to ₹231 crore in the December 2023 quarter on the back of higher revenues. During the quarter, the total revenue increased 13% year-on-year to ₹2,661 crore from ₹2,350 crore in Q3 FY23, driven by incremental contributions from the renewable portfolio and strong thermal performance, largely driven by a buoyant merchant market.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Energy CEO outlines vision to become India’s leading green energy producer | Q&A

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Sharad Mahendra, Joint MD and CEO, and Pritesh Vinay, Director-Finance & CFO of JSW Energy, in a conversation with CNBC-TV18, discussed how the rising peak power demand in India presents a huge growth opportunity for the company.

“…peak demand, which was close to about 203 gigawatts in FY22 reached 260 gigawatts in FY24 and is expected to reach to a level of 335 gigawatt by FY30. We see this as a huge opportunity. With a special focus of the country in the renewable space, we are getting ourselves ready,” Mahendra said in a conversation with CNBC-TV18.

He said the company’s vision is to be among the leading green energy producers in the country, and providing not only green energy, but a comprehensive solution to the end customers.

Read the verbatim transcript of the interview.

Q: So in the context of you talking about energy demand soaring, we are also entering a peak season in terms of demand. You also built up a very successful and large war chest of almost ₹5,000 crore after raising funds via the recent qualified institutional placement (QIP)?

Mahendra: Regarding the QIP, which we recently raised, has got a tremendous response. This is the largest fundraise in more than last 10 years in the power sector and the third largest in the history of power sector in the country. Apart from the response, he got, which is in excess 3.2 times the response, the participation from the global majors, has given us a lot of confidence that the market also sees us as organisation that delivers the promises.

As you said that we have already about a year and a half, two years back, we have said that to reach 20 gigawatts of generation capacity by FY30 we are absolutely on track. And if we say that we have divided that into two phases, phase one, we had said that we will be reaching all close to 10 gigawatts by FY25, we are very well on track. We are absolutely confident that the work in progress, which is there, that we will be reaching phase one and phase two reaching 20 gigawatt by FY30. With the kind of order book which we have, and the readiness we have, we are quite confident that we will be accelerating that growth and we will be reaching that number a few years earlier only, which will result into achieving those EBITDA numbers and PAT numbers of FY30 significantly earlier.

Q: Could you be able to give a timeline of when you would be able to reach

Mahendra: Though we have considered all the challenges that exist in executing the project, rather than giving the exact timeline but few years earlier, I can say that we will be achieving that and then we will be revisiting will not be stopping there. So FY30, what we will be reaching we are working on that now.

Q: Market expectations were that the QIP raise that is coming in, majority of that would be going in and finding a valuation benchmark as far as JSW Neo, renewable energy arm is concerned. The structure of the QIP is such that a lot of the money, a lot of the funds is going to repaying debt and a certain portion a little over ₹600 crore is going into JSW Neo. Can you explain the structure to us how will the QIP proceeds be used and FY25 after the debt repayment, what will be the interest cost savings that we will see?

Vinay: If I take a few steps back, in the few earnings conference calls, in the past, people have asked us about different optionality’s of capital raising, if at all, and we maintained one consistent stance all the time that whatever we do at the right time will be what is most value accretive for the business and for the shareholders. That has been our philosophy and the guiding principle I would say. We created an enabling structure two years ago by creating JSW Neo energy and through multiple corporate actions, ensuring that all the green businesses were housed under this one entity. So we created what is called a monetisation vehicle, that if and when an opportunity comes, we would have the ability to do that.

However, looking at it from a relative trade-off point of view another very important criteria that went behind doing a QIP, rather than anything else was that in the last two years, we have done extensive engagement with large institutional investors and a consistent feedback we got is that great business, great management, but very low free float, and the low liquidity is becoming a constraint. So an important criteria was also how do we get high quality blue chip institutional investors in our cap table, and QIP would give an opportunity to do that. So in sum total, we finally decided to, you know, go ahead with QIP. And as Sharad was rightly mentioning, the response was very, very humbling indeed.

Q: How does this change your balance sheet in terms of the debt figure?

Vinay: What will happen is this, that effectively, if you look at the end of December what we had reported, we reported a net debt of ₹26,300 crore. And this translated from a leverage profile point of view or net debt to TTM EBITDA of about 4.6 times, and net debt to equity of about 1.3 times. This is still very, very healthy on a sector-relative basis. So, an already robust capital structure will get further bolstered by having this large liquidity pile and create an additional headroom in the balance sheet to accelerate the growth plans in line with what Sharad was just mentioning, to prepone the 2030 targets by a few years, this liquidity will really help.

For the entire discussion, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Energy aims to reach 20GW capacity ahead of its 2030 target

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

JSW Energy’s Joint MD and CEO, Sharad Mahendra says the company is actively working to reach its 20 Gigawatt (GW) capacity target ahead of the previously set 2030 timeline..

“To reach 10 GW by FY25 we are very well on track and reaching 20 GW by FY30. I am quite confident that we will be accelerating the growth and we will be reaching that number a few years early,” he said.

Mahendra highlighted the opportunities available in the energy sector and the company’s vision to capitalise on it to be among the leading producers of green energy in the country.

The company recently concluded its ₹5,000 crore Qualified Institutional Placement (QIP) that garnered a very strong interest from marquee global long-only investors, domestic mutual funds and insurance companies.

Pritesh Vinay, Director-Finance and CFO, JSW Energy said one key reason behind the QIP was attracting high-quality blue chip institutional investors.

The company’s net debt is at over ₹26,000 crore at the end of December, Vinay stated.

Also Read | Adani Group to invest ₹2.3 lakh crore in renewable energy, manufacturing capacity

Mahendra said it is looking for opportunities in thermal energy as India intends to add almost 88 GW of thermal capacity by early 2032.

“If the opportunity is there and there is a need, we would like to be a part of this growth story but our significant focus will be on the green energy space,” Mahendra said.

The current market capitalistion of the company is ₹1,07,269.29 crore.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Energy raises ₹5,000 crore by selling shares to investors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

JSW Energy has completed its ₹5,000 crore Qualified Institutions Placement (QIP) that garnered a very strong interest from marquee global long-only investors, domestic mutual funds and insurance companies, the firm said in an exchange filing on April 5.

The fim’s first-ever equity raise since its listing in 2010 witnessed over 3.2 times subscription with few of the largest global asset managers like GQG, Blackrock, Nomura, Wellington, UBS and Abu Dhabi Investment Authority (ADIA) participating in the QIP.

“This is the largest primary equity raise in the Indian power sector in the last decade, and among the top three largest primary equity raise in the history of the Indian power sector,” JSW Energy noted.

In the statement following the completion of QIP, Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said: “the strong institutional investor interest reflects their unwavering confidence in our positioning as a diversified energy transition platform.”

Pritesh Vinay, Director (Finance) and CFO of JSW Energy, also asserted that the QIP saw participation from high-quality institutional investors. “It validates JSW Energy’s positioning of having bestin-class disciplined capital allocation track record, proven execution capability to build large scale projects at competitive costs, operational excellence, and a strong pipeline of returns-accretive growth projects.”

Also Read: JSW Energy arm bags additional 500MW wind capacity for SECI projects

The proceeds from the QIP will lead to a strong capital structure, enhance the company’s financial flexibility, and enable it to accelerate growth plans, Vinay said.

JSW Energy Limited has a presence across the value chains of the power sector, with diversified assets in power generation and transmission. JSW Energy began commercial operations in 2000, with the commissioning of its first 2×130 MW thermal power plants at Vijayanagar, Karnataka.

Since then, the company has enhanced its power generation capacity from 260 MW to 7,189 MW having a portfolio of thermal 3,508 MW, wind 1,615 MW, hydel 1,391 MW and solar 675 MW. The company is presently constructing various power projects to the tune of 2.6 GW.

Also Read: JSW Energy gains on receiving order from Solar Energy Corp for 700 MW project

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Energy’s board approves raising up to ₹5,000 crore via QIP

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The board of JSW Energy Ltd. on Tuesday, April 2, approved raising funds worth up to ₹5,000 crore through a Qualified Institutional Placement (QIP), it said in an exchange filing.

The floor price for the share is set at ₹510 per share, while the indicative issue price stands at ₹485 per share. This fundraising could result in an equity dilution of up to 6.27% of the company’s equity at the indicative issue price.

The company plans to utilise the proceeds from this fundraiser in three key areas: repayment of outstanding borrowings, investment in JSW Neo Energy, and for general corporate purposes.

A QIP is a fundraising method through which a company raises funds by issuing shares to eligible institutional bidders. JSW Energy will raise these funds in one or more tranches, the company said in a statement.

This fundraising exercise is subject to regulatory or statutory approvals as required. The board has authorised the Finance Committee of the board to take all the necessary decisions in this regard, the company said.

As of the December 2023 quarter, promoters of JSW Energy held a 73.38% stake in the company. JSW Energy is present across power generation, energy storage and energy products and services businesses.

Shares of JSW Energy settled 4.54% higher at ₹542 apiece on the NSE. The stock has risen 32% so far this year and it’s up over 115% in the last 12 months.

In terms of technicals, the relative strength index (RSI) of JSW Energy stands at 56.2, signaling it’s trading neither in the overbought zone nor in the oversold zone.

The counter has a one-year beta of 0.4, indicating very low volatility during the same period. JSW Energy shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Energy arm bags additional 500MW wind capacity for SECI projects

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

JSW Energy on Saturday announced that its wholly-owned subsidiary JSW Neo Energy Ltd has bagged an additional 500 MW of wind energy capacity for wind power projects of Solar Energy Corporation of India Limited (SECI).

With the latest award, the total wind power capacity won by JSW Neo Energy Ltd under the SECI Tranche XVI has increased to 1,000MW, JSW Energy said in an exchange filing on Saturday, March 16.

JSW Neo Energy Ltd bagged a 500MW wind capacity under the SECI Tranche XVI. The company received a letter of award (LoA) for an additional 500MW under the greenshoe option for SECI wind power projects, taking the total capacity to 1,000 MW, the filing stated.

The latest project win will help JSW Energy take its total locked-in generation capacity to 12.5GW, of which 4.6GW will be wind power.

The company at present has an installed generation capacity of 7.2GW, of which 1.6GW is wind. Around 2.6GW of power capacity is under construction across wind, thermal and hydro segments.

Also, the company has received LoAs for 2.7GW capacity from SECI (solar and wind), SJVN and GUVNL.

JSW Neo Energy Ltd on Wednesday (March 14) received a letter of intent (LoI) for the grid-connected solar capacity of 300MW from Gujarat Urja Vikas Nigam Limited. The solar capacity will be set up in Gujarat State Electricity Corporation’s RE Park at Khavda.

JSW Energy targets an installed capacity of 9.8 GW by the end of this year against the current 7.2 GW.

JSW Energy is part of the $23 billion JSW Group which has interests in steel, energy, infrastructure, cement, sports and other sectors.

JSW Energy is targeting a total generation capacity of 20GW by 2030, reducing its carbon footprint by 50% by the same year and becoming Net Zero by 2050.

JSW Energy shares closed 4.57% higher at ₹497.6 apiece on BSE on Friday.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Energy gains on receiving order from Solar Energy Corp for 700 MW project

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

JSW Energy shares gained nearly 2% on Thursday, March 14, after the company announced that its arm JSW Neo Energy has secured a Letter of Award (LoA) from Solar Energy Corporation of India Ltd (SECI) for a solar project of 700 megawatt capacity that will be connected to the interstate transmission system (ISTS).

The LoA has been obtained against a tariff-based competitive bid invited for setting up 1,500 MW ISTS-connected solar power projects, JSW said in a filing to the stock exchanges.

With this contract, the firm’s total locked-in capacity increases to 11.7 GW comprising 1.2 GW of solar capacity.

JSW Energy’s current installed generation capacity stands at 7.2 GW, with expectations to increase to 9.8 GW by CY24.

The company possesses a total locked-in generation capacity of 11.7 GW, which includes 7.2 GW in operation, 2.6 GW under construction in wind, thermal, and hydro sectors, and Letters of Assurance (LoAs) for an additional 1.9 GW capacity from SECI (Solar Tranche XIII and Wind Tranche XVI) and SJVN.

Additionally, JSW Energy has 3.4 GWh of locked-in energy storage capacity through battery energy storage systems and a hydro pumped storage project.

The company aims to achieve a generation capacity of 20 GW and an energy storage capacity of 40 GWh before 2030.

It has set ambitious targets, including a 50% reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050.

Last month, JSW Neo Energy obtained a LoA from SJVN Ltd for a solar capacity project totalling 700 MW, which will be integrated into the interstate transmission system.

Shares of JSW Energy were trading 1.55% higher at ₹468.6 apiece on BSE at 9:44 am.

Also Read: L&T wins largest ever cross-country pipeline EPC project in the Middle East; Shares rise

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow