JSW Energy spikes & falls

about 6 months ago
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JSW Energy seems to be having quite the volatile session today. From its close of Rs.250.50, it opened with a big gap upwards at Rs.257.50, just 50 paise short of its 52-week high of Rs.258. Profit booking has pushed the stock to Rs.250 currently.

Over the weekend it announced its earnings for Q1FY22 wherein it reported a 6% (YoY) decline in consolidated net profit at Rs.201 crore.

The company said that if one adjusts the one-time finance charges, the net profit actually came in at Rs.261 crore, up 22%. Total income came at Rs.1860 crore, down 1.5% and this fall, the company has attributed it to impact of job work at the standalone entity, partly offset by increase in long-term sales and other income.

Its finance cost rose 21% at Rs.290 crore and this was mainly on account of the one-time expenses of Rs 92 crore during the quarter towards prepayment charges and write-off of unamortised other borrowing cost relating to repayment of rupee denominated loans of JSW Hydro Energy. The company said that the loans have been replaced with a dollar denominated green bond issued in the quarter.

The company is expanding its capacity from current 4.6 GW to 10 GW by 2024-25 and 20 GW by 2029-30, with the entire capacity addition being via renewables. About 2.5 GW of renewable energy capacity is under construction in full swing.

The company plans to spin-off its thermal power plants into a separate legal entity with plans to sell it in the long run.

The company currently has 4,559 MW of generation capacity. Of this, 3,158 MW is thermal power, 1,391 MW is hydropower and 10 MW is solar power.

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