what is the business of jsw energy?
India has demonstrated a strong commitment to combating climate change and achieving its goal of net zero carbon emissions by 2070 The nation has underscored its dedication to clean energy with an ambitious target of reaching 500 GW of non-fossil fuel capacity. To meet this target, the government plans to add 50 GW of renewable energy capacity annually over the next five years. Recently, energy security has become the focal point of government initiatives, reflecting a balanced approach towards sustainable development and climate resilience.
JSW Energy is committed to managing its greenhouse gas (GHG) emissions effectively. Through rigorous monitoring and mitigation efforts, the company strives to minimise its carbon footprint across all operations. Adopting innovative technologies and best practices, JSW Energy aims to reduce GHG emissions while ensuring operational efficiency and sustainability. By setting ambitious targets and implementing comprehensive strategies, the company demonstrates its dedication to combating climate change and transitioning towards a low-carbon future.
JSW Energy, are dedicated to confronting the challenges and opportunities posed by climate change head-on. Acknowledging the profound implications climate-related factors can have on their business and financial outcomes, we are committed to embracing the TCFD framework. This framework, encompassing governance, strategy, risk management, and metrics/ targets, provides a structured approach for evaluating and divulging climate-related risks and opportunities in a consistent and comparable manner.
As a leading player in the energy sector, JSW Energy actively contributes to the nation’s economic growth by meeting escalating energy demands. Embracing renewable energy as a catalyst for sustainable development, JSW Energy prioritises operational efficiency and energy optimisation across its value chain. By adhering to industry-leading energy management practices and integrating cutting-edge technologies, the organisation maximises asset utilisation while minimising environmental impact. With diversified investments in Solar, Wind, Hydro, and green hydrogen projects, JSW Energy aligns its energy portfolio with national climate goals, advancing towards deeper decarbonisation. Committed to innovation and sustainability, JSW Energy stands at the forefront of driving positive change in the energy landscape, fostering a greener and more resilient future for all.
“State Safety Award-2023” for high standards of competence and compliance of OHS by Factories & Boilers Inspection, Rajasthan Government.
“Platinum Award” in the Power generation sector for outstanding achievement in Occupational Health and Safety Organised by the Sustainability Development Foundation.
JSW Energy is committed to combating climate change and has implemented an Internal Carbon Pricing (ICP) mechanism as part of its sustainability efforts. This approach is pivotal in reducing greenhouse gas emissions and transitioning towards a low-carbon economy. Adopting the shadow pricing method, JSW Energy has established an ICP range of 10-12 USD per tonne of CO 2 e through extensive analysis of global carbon pricing data.
The incorporation of ICP allows the company to integrate the costs of carbon emissions into decision-making processes, encouraging the adoption of cleaner technologies. Investments in energy-efficient equipment,such as Variable Feed Drives (VFDs), have been initiated based on ROI analysis using shadow pricing. This not only enhances operational efficiency but also reduces emissions.
JSW Energy strives to drive ‘Zero Liquid Discharge’ policy across its plants, internally managing process wastewater through recycling and reuse. This strategy eliminates the need for effluent discharge outside the plant, aligning seamlessly with our sustainability objectives. Wastewater treatment and recycling are integral components of this approach, ensuring water is either reintegrated into the water use cycle or repurposed for horticultural purposes. In FY 2024 alone, JSW Energy, underscoring our steadfast dedication to sustainability and responsible resource management, has successfully recycled and reused an impressive 4,161.33 million litres of water.
Biodiversity Strategic Approach JSW Energy is deeply committed to preserving biodiversity, proactively identifying and mitigating potential risks to prevent any net loss across its operational sites. Central to our sustainability efforts is reducing the environmental footprint of our business activities.
This is also the largest primary equity raise in the Indian power sector in the last decade, and among the top three largest primary equity raise in the Indian power sector. The QIP issue garnered a very strong interest from marquee global long-only investors, domestic mutual funds and insurance companies, reflecting their confidence in India’s power sector outlook and the Company’s unique and distinctive positioning as a leading player in the Indian power sector.
The overwhelming response to the QIP issue validates JSW Energy’s positioning in the industry with best-in-class disciplined capital allocation track record, proven execution capabilities to build large scale projects at competitive costs, operational excellence, and a strong pipeline of returns accretive growth projects.
The proceeds from the QIP will enhance an “already strong” capital structure of the Company even further, while also significantly enhancing our financial flexibility, and enabling us to fast-track and accelerate our ambitious growth plans.
The 13-day-long United Nations Climate Change Conference, COP28, turned out to be the largest ever, with all parties agreeing to triple global renewable energy capacity and double the current annual rate of energy efficiency improvements by 2030. These steps are imperative if the temperature rise on the planet is to be restricted to 1.5 degrees Celsius. Twenty countries pledged to launch the ‘Declaration to Triple Nuclear Energy by 2050’. 118 governments committed to tripling renewables and doubling the rate of energy efficiency improvements by 2030. Twenty-two countries committed to triple their nuclear energy capacity by 2050.
Though a complete fossil fuel phase-out was not agreed upon, all parties agreed to phase down and transition away from fossil fuels in a just, orderly, and equitable manner. This made it evident that parties realise the inevitability of the end of the fossil fuel era. This conference has gained popularity as the “beginning of an end” for fossil fuel usage across the globe.
India is the world’s third-largest power producer but has a low per capita consumption rate of almost one- third of the world average, providing huge opportunity for growth. During FY 2024, power demand grew 7.5% to 1,627 BUs, led by a spike in economic activities. In 2023, India’s electricity demand varied with weather conditions. Power consumption remained subdued in
March, April, May, and June due to widespread rainfall, while in August, September, and October demand rose amidst humid weather conditions and growth in industrial activities for the approaching festive season. To ensure uninterrupted power supply, the government extended the mandate of blending a minimum of 6% imported coal with domestic coal until March 2024. The peak power demand in India increased from 136 GW in FY 2014 to 243 GW in September 2023. With continued economic growth momentum, peak demand is expected to rise to 260 GW in FY 2025.
India’s net thermal capacity of 243 GW, as of 31st March, 2024, was comprised mainly of coal. The share of thermal energy has reduced by 2% YoY, though it continues to be the largest source, occupying 55% of the total installed capacity in the country. The growth in thermal capacity was 6 GW during FY 2024, notwithstanding the strong commitment to renewable energy sources to meet growing electricity demand.
Financial
| Market Cap | ₹ 1,12,870.89 Cr. |
| No. of Shares | 174.78 Cr. |
| P/E | 99.65 |
| P/B | 5.29 |
| Div. Yield | 0.31 % |
| DEBT | ₹ 7,004.98 Cr |
| Promoter Holding | 69.32 % |
| ROE | 6.64 % |
Profit & Loss
(All Figures in Cr. Adjusted EPS in Rs.)
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
| Net Sales | 4,313.99 | 2,897.53 | 3,642.74 | 5,739.23 | 5,129.09 |
| Profit Before Tax | 423.87 | 307.74 | 818.08 | 1,029.61 | 1,181.31 |
| Net Profit | 497.81 | 186.18 | 569.82 | 711.02 | 950.22 |
| Adjusted EPS (Rs.) | 3.03 | 1.13 | 3.48 | 4.33 | 5.79 |
- The company has shown a good profit growth of 72.17% for the Past 3 years.
- The company has shown a good revenue growth of 20.97% for the Past 3 years.
- The Company has been maintaining an effective average operating margins of 25.55% in the last 5 years.
- The company has an efficient Cash Conversion Cycle of 66.04 days.
- The company has a good cash flow management; CFO/PAT stands at 1.58.
Shareholding Pattern
Promoter 69.32%
FII 14.92%
DII 9.78%
Public 5.98%
The End.
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