JSW Energy recorded a 20% y-o-y growth in Ebitda, reaching Rs 12.2 billion. This growth was supported by the inclusion of Mytrah’s earnings for the first full quarter, contributing Rs 3.7 billion to the Ebitda figure. However, the weaker performance of the company’s previous assets, coupled with higher interest and depreciation costs, resulted in a 34% y-o-y decline in PAT, which amounted to Rs 2.9 billion. JSW Energy aims to achieve a capacity of 9.8 GW by FY2025 estimates, and it appears to be on track to meet this target. Additionally, the company has ambitious plans in pump storage hydro and battery storage (40 GW), as well as capacities in solar module manufacturing (1 GW) and green hydrogen production (3,800 tpa). We maintain our SELL rating on JSW Energy.

JSW Energy reported revenue of 29.3 billion and Ebitda of12.2 billion and PAT of 2.9 billion in Q1FY24. Higher Ebitda was on account of3.7 billion of contribution from the Mytrah acquisition, offset by lower generation at hydro capacities and lower merchant sales that impacted Ebitda by 660 million and910 million, respectively. The consolidated net profit in Q1FY24 was impacted by a higher depreciation charge of 4 billion and higher finance costs of4.8 billion, as the company completed the Mytrah consolidation, as well as the one-time impact on interest cost of `410 million .

Also Read

JSW Energy has installed capacities of 6.6 GW as of June 2023, bolstered by the recent acquisition of 1.7 GW at Mytrah. Incrementally, it has a project pipeline of 3.1 GW, including the thermal project of 700 MW acquired in December 2022 and other renewable projects at various stages of implementation – the company expects to commission them in CY2024. These will entail a total project cost of 216 billion, against which a capex of92 billion has been incurred until June 2023.

JSW Energy is targeting a capacity of 20 GW by FY2030E, comprising primarily renewable energy assets in addition to pump storage hydro plants (40 GW), investment in green hydrogen capacities (3,800 tpa) and a module manufacturing capacity (1 GW).