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JSW Energy to commission about 2.25 GW of renewable capacity in 18 months

At Rs 560 cr, company’s profit zooms 179% in Q1

JSW Energy to commission about 2.25 GW of renewable capacity in 18 months
The firm, which had earmarked Rs 8,000-10,000 crore capex per annum over the next decade, would further increase it after three years.

Industrialist Sajjan Jindal-led JSW Energy intends to commission about 2.25 GW of renewable capacity in the next 18 months and intends to achieve the 10 GW target much ahead of schedule.

The firm, which had earmarked Rs 8,000-10,000 crore capex per annum over the next decade, would further increase it after three years.

“From the current quarter every month this capacity will start getting commissioned and this implies that the total capacity should be up and running in the next 18 months. We had given the guidance of achieving 10 GW of capacity by FY25, and I am confident of achieving it much earlier,” JSW Energy joint MD and CEO Prashant Jain told FE in an interaction.

Under its growth strategy, the company had earlier announced plans to expand capacities from the current 7.3 GW to 10 GW by FY25 and 20 GW by FY30. The entire capacity addition would be driven by renewables, and the planned addition of 2.25 GW of greenfield renewable energy is currently progressing “ahead of schedule”.

“There are various other projects in the pipeline, which will also result in more and more capacity addition. The demand from the power sector is robust; last quarter was good and going forward we expect it to be good. There are opportunities for us to send more power in the merchant market,” Jain said, adding, the firm is also constantly evaluating inorganic growth in the renewable space.

The firm would increase its earmarked Rs 8,000-10,000-crore capex after three years, but depending on the business environment.

Talking about the plans to foray into hydrogen and green ammonia space, Jain said: “I think we will be the first one to start construction in that space. But it is some more time away. We are in discussions”.

JSW Energy posted a 179% rise in consolidated net profit at Rs 560 crore in the first quarter ended June 30, beating analysts’ estimates, primarily led by strong merchant demand. In comparison, it had posted a net profit of Rs 201 crore in the same quarter of last fiscal.

A consensus estimate of Bloomberg analysts was expecting the company to post a net profit of `404 crore.

The company recorded an exceptional income of Rs 120 crore during the quarter, which was a reversal in loss of a loan given to a party earlier, it said in a regulatory update.

JSW Energy’s total revenue during the reporting period rose to Rs 3,115 crore, a 67.47% rise from Rs 1,860 crore recorded during the same year-ago period. While Ebitda rose to Rs 1,111 crore (from 830 crore), Ebitda margins fell to 36% (from 45%).

The Mumbai-based company’s overall generation rose 14% year-on-year on the back of strong merchant demand, better hydrology and capacity increase in renewable energy. Its total thermal generation was up 12% y-o-y, driven by increased merchant market sales.

JSW Energy’s total hydel generation was higher by 13% y-o-y due to better hydrology and uprating at Karcham Wangtoo, while it commenced operations at the 225 MW solar power plant at Vijayanagar with quarter exit Capacity Utilisation Factor (CUF) of 27%.

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