JSW Energy

[00:00:00] Hello everyone! Welcome to the latest episode of Har Stock Kuch Kehta Hai, presented by Angel One, a podcast where we will know and understand how a company's journey is. We hope you enjoyed our last episode. If you are listening to this podcast for the

[00:00:20] first time, then we would recommend that you do check out our last episodes as well where we talked about Tata, Raymence, Indigo Airlines and Gillet India Limited. My name is Rohan and let's start today's episode. Today we will talk about JSW Energy.

[00:00:47] JSW Energy Limited was incorporated in 1994 as a joint venture between JSW Steel Limited and Traktor Bell SA Belgium, while the company's name was Jindal Traktor Bell Power Company Limited. JSW Energy started its commercial operations in 2000, in Torangullu. In December 2001, Traktor Bell sold its stakes to Jindal Group companies.

[00:01:13] Now Jindal changed its name to JV to recognize it and put Jindal Power Company. The name was further changed to JSW Energy Limited in 2005. In 2008, JSW made a new joint venture with the Toshiba Corporation in Japan so that

[00:01:31] a turbine and generator manufacturing facility can be established in India. In October 2011, JSW's 1200 megawatt power plant was completely operational, which supplies electricity to the state grid. This was the first power project of over 1000 megawatts to be set up in the state of Maharashtra by the private sector.

[00:01:53] In the next few years, the company gradually expanded in other states through acquisitions. In 2015, JSW Energy acquired the Himaachal Pradesh's Bus Power Company and the Mp based Jay Prakash Power Ventures. In 2016, JSW established Jindal Steel and Power Limited's 1000 megawatt thermal plant in Chhattisgarh.

[00:02:16] JSW Energy entered in 2017 electric vehicles, energy storage systems and related businesses. One year later, JSW Solar Limited incorporated it as a subsidiary so that sustainable energy space, energy storage mechanisms and microgrids such as MOC could be searched.

[00:02:36] In 2018, JSW Energy Limited secured a power purchase agreement i.e. PPA of 200 megawatt with Punjab State Power Corporation. In 2020, it acquired Udisha's based 1050 megawatt GMR Kamalanga Energy Limited and 700 megawatt in Bharat Energy Limited. Then next year, JSW commissioned Karcham-Vangtu Hydroelectric Power Plant, which achieved

[00:03:04] highest plant availability factor i.e. PAF. PAF is basically the ratio of actual operating hours of a power plant by total scheduled operating hours during a given period. This achievement, JSW K-Tech efficiency was possible. It installed remote controlled wireless

[00:03:22] access points which enabled centralized management and control over the Wi-Fi network used at the plant. It also completed the firewall high availability i.e. HA setup and configuration of MPLS links through a firewall to increase reliability and IT security. Same year, it

[00:03:42] also approved the reorganization of its thermal and renewable businesses. In 2022, JSW Energy commissioned a 225 megawatt captive solar power plant at Vijayanagar in Karnataka. Every milestone shows the sustainability and innovation commitment to the industry. Now let's look at the journey of JSW Energy.

[00:04:05] Let's see the competition of this industry. JSW Energy has major competitors, NTPC Limited, Adani Power, Reliance Power and Tata Power. NTPC is a giant company of a public sector which has a huge reach on the national level.

[00:04:21] Adani Power and Tata Power are also major competitors in this industry, which operate and renew energy sources in both. These companies have invested a lot in solar and wind projects which shows the shift towards global sustainable energy. These competitors make a challenging

[00:04:41] market landscape for JSW Energy, which encourages JSW Energy to improve its new innovations and operational efficiencies. Now let's get into the industry. According to the reports of March 2024, India has a total thermal installed capacity of 242.9921 gigawatt, out of which 210.96 gigawatt is the coal installed capacity.

[00:05:07] The rest is of lignite, diesel and gas. Private players of the power industry generate around 51% power of India. And states and centre generate 24.3% and 23.6%. India's power sector is undergoing a significant transformation which is redefining the industry

[00:05:26] outlook. Power industry has a lot of scope ahead because sustained economic growth is driving electricity demand in India. Not only that, the government is also focusing on achieving its power for all goal and has also escalated capacity addition in the country.

[00:05:45] Now let's look at the financial performance of JSW Energy. In the last quarter three, JSW Energy's total revenue has increased from 13% year on year from Rs.2,350 crore to Rs.2,661 crore. This was majorly due to high contribution from renewable portfolio and robust thermal performance.

[00:06:07] The company has reported an increase of 28% in net profit. It went from Rs.231 crore in the quarter three financial year 2024 against Rs.180 crore in the same quarter last year. Company's liquidity position was also good with cash balances at Rs.2867 crore of 31 December 2023.

[00:06:29] Consolidated net worth Rs.2976 crore and net debt Rs.26286 crore resulting in a net debt to equity ratio 1.3x. Now let's talk about JSW Energy's CSR initiatives. From the start, JSW Foundation has supported nearby localities of its plants and has also done a lot of efforts to sustain them.

[00:06:56] Company has started many schools for mid-day meal programs. In addition, an educational institution has also established for differently able children and many hospitals have also been incorporated under the name Sanjeevani Hospital. JSW Energy not only fulfills its business but also fulfills its responsibilities towards society.

[00:07:19] So this was the story of JSW Energy. Thank you so much for listening to us. We hope you liked this episode. If yes then please do share it with your friends and family. Through this show, we bring a story behind a new company every week for you.

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