scorecardresearchJSW Energy rose 6% after Q2 earnings; gained 63% from June mid-lows

JSW Energy rose 6% after Q2 earnings; gained 63% from June mid-lows

Updated: 31 Oct 2022, 12:58 PM IST
TL;DR.

On Friday, JSW Energy reported a 16.04% YoY rise in total revenue at 2,596.3 crore compared to 2,237.4 crore in the same period last year. It posted a 37.30% YoY jump in its consolidated net profit at 465.7 crore for the September ending quarter as against a net profit of 339.2 crore

By switching to renewable energy, the company has set an ambitious target for a 50% reduction in its carbon footprint by 2030 and to achieve Carbon Neutrality by 2050.

By switching to renewable energy, the company has set an ambitious target for a 50% reduction in its carbon footprint by 2030 and to achieve Carbon Neutrality by 2050.

Shares of JSW Energy surged nearly 6.40% in intra-day trade on Monday after the company posted a 37.30% YoY jump in its consolidated net profit at 465.7 crore for the September ending quarter as against a net profit of 339.2 crore in the same quarter of the last fiscal. However, sequentially the net profit was down 16.89%.

During Monday's trade, the stock opened with a gap up of 7.25 at 325.50 and surged further to hit a new intra-day high of 338.50 and touch a two-week high. At 12:30 p.m., the stock was trading at around 336, up by 5.71% on the BSE.

On Friday, JSW Energy reported a 16.04% YoY rise in total revenue at 2,596.3 crore compared to 2,237.4 crore in the same period last year. However, the company's operating profit fell marginally by 4.31% YoY to 889.7 crore from 929.8 crore on the back of a rise in total expenses which surged nearly 30% YoY. Similarly, the EBITDA margin of the company dropped to 37.26% year on year, from 44.54%, falling by almost 728 (bps).

Finance costs during the quarter (July-September) increased by 7 per cent YoY to 204 crore because of additional borrowings due to ongoing growth Capex. The weighted average cost of debt increased by 7 bps QoQ (basis point quarter on quarter) to 7.94 per cent, JSW Energy said.

Long-term sales during the quarter stood at 6,481 million units, lower by 1 per cent YoY as lower thermal generation was partly offset by higher generation at solar operations at Vijayanagar, the company said.

The company also stated that the short-term sales during the quarter came in at 194 million units versus 236 million units in Q2 FY22 due to weak merchant market demand.

The board in its meeting also approved raising long-term funds to 2,500 crore through, inter alia, the issuance of non-convertible debentures by way of a private placement.

On the stock performance side, in the last six months, shares of JSW energy surged from around 246 to 318 levels, logging a nearly 29.26% rise in this period. From the June mid-low of 195, the stock has delivered a return of 63% to date. At current levels, the stock is trading 84% higher than its 52-week low of 182.

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Stock price chart of JSW energy

On October 11, JSW Neo Energy, a wholly-owned subsidiary of JSW Energy, has received a Letter of Intent from the Himachal Pradesh government for the allotment of 126 MW Chhatru Hydro Electric Power Plant.

Prior to this, JSW Neo Energy also entered into an MoU with the government of Maharastra for setting up a 960 MW capacity hydro-pumped storage project.

JSW Neo Energy, a wholly owned subsidiary of JSW Energy, is a vehicle formed as a part of the re-organisation of business to own all the renewable/green and new energy businesses.

JSW Energy's capacity now stands at 9.2 GW (share of renewables at 66 per cent) including 1.75 GW of renewable assets under acquisition from Mytrah and about 2.7 GW of under-construction/in-pipeline wind and hydro projects which are likely to be commissioned in a phased manner, ANI reported.

By switching to renewable energy, the company has set an ambitious target for a 50% reduction in its carbon footprint by 2030 and to achieve Carbon Neutrality by 2050.

JSW Energy has set a target to reach 20 GW of capacity by 2030, with the share of renewable energy increasing to 85%.

An average of 11 analysts polled by MintGenie have a strong 'sell' call on the stock.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 31 Oct 2022, 12:51 PM IST