More Stories

Informist, Tuesday, Jan. 28, 2025

-- JSW Energy: See strong power demand in medium term

-- JSW Energy: On track to reach 10 GW installed capacity by FY25

-- JSW Energy: 7.8 GW power projects under construction

-- JSW Energy: See FY25 capex at INR 100 billion, 33% lower than planned

By Avishek Rakshit & Ashutosh Pati

KOLKATA – Bullish on power demand in the country in the medium term, JSW Energy Ltd. is stepping up the gas on its power generation projects expecting to reach its targeted 10 GW of installed capacity by April from the current 8.1 GW.

In a call with the sector analysts after declaring its financial results for the December quarter, Joint Managing Director, Sharad Mahendra said that JSW Energy's total power generation during Oct-Dec was up by 10% on year to 6.8 billion units on account of capacity additions in wind energy, and incremental generation in its acquired Ind-Barath Energy plant in Odisha and other hydel projects.

Of this, renewable energy generation was up by 18% on year to 1.6 billion units, primarily on account of wind and hydel projects, and thermal power generation increased 8% on year to 5.1 billion units.

However, the current environment of muted power demand due to macro-economic factors led to flat revenue growth to INR 26.4 billion as incremental sales from renewable energy capacity additions were offset by lower short-term realisation at its Ratnagiri and Vijayanagar power projects.

Nevertheless, Mahendra is optimist about power demand bouncing back strongly in the coming months. Usually, power demand, which is extremely seasonal in nature, peaks during the summer, moderates during the monsoon and tapers off during the winters unless demand from manufacturing and core sectors like capital goods continues to remain strong.

Mahendra said that the tepid power demand situation in the country during Oct-Dec is on account of a high base. Total power demand in the country increased by 2.7% on year during Oct-Dec and in the comparative quarter of 2023-24 (Apr-Mar), the growth was 9.9%, he said.

JSW Energy, which is on an expansion spree via acquisitions, is also focussing on organic expansion and currently has 7.8 GW of projects under construction. However, the company is facing difficulties in expansion projects and thus, capital expenditure for the ongoing financial year have been revised downwards by 33% to INR 100 billion from the earlier guidance of INR 150 billion at the beginning of the current fiscal year.

"We have pressed the pedal on inorganic route," Mahendra said.

On Jan. 13, Informist had then exclusively reported that JSW Energy, with its offer of around INR 160 billion, had outbid Adani Power to become the preferred bidder to acquire debt-ridden 3,600 MW KSK Mahanadi Power Co. Ltd. under the Corporate Insolvency Resolution Process.

On Jan. 10, JSW Energy also completed the acquisition of 125 MW wind projects from Hetero Labs and Hetero Drugs Ltd. at an enterprise valuation of 6.3 billion, and on Dec. 27, it signed an agreement with O2 power to acquire 4.7 GW of renewable energy capacity at an enterprise valuation of INR 124.7 billion.

Tuesday, shares of JSW Energy closed 5.7% down at INR 504 on the National Stock Exchange. Although the company declared its financial results after trading hours, the Street had factored in the company's financial performance. During Oct-Dec, the company missed the Street's projection of INR 4.3 billion of profit by reporting a net profit of INR 1.7 billion, down 27% on year. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.