JSW Energy plans to increase its capex over the next six years as it fast-tracks capacity additions, said chairman and managing director Sajjan Jindal at the company’s FY24 annual general meeting on Friday.
The company plans to bump its capex to Rs 1.15 trillion to reach its goal of 20 gigawatt (GW) by 2030 and 40 GWh (gigawatt hour) under Strategy 2.0, Jindal said.
“As we accelerate our ambition, this (capex) is likely to increase going forward. Our plan is to spend approximately Rs 15,000 crore in the current fiscal 2025,” Jindal said. The company had increased its capex from Rs 85,000 crore to Rs 1.12 trillion previously.
Raymond announces vertical demerger of its real estate business into Raymond Realty
Q-commerce sales double in a year for FMCG majors, now comprise 33-36% of total e-comm sales
‘Assessing various dimensions of green hydrogen opportunity’
FMCG deals on the fast track; M&As in sector hit $938 million in H1, highest in 4 years
Significant strides have been made towards the target of becoming a 20 GW generation company well before 2030, he said. “With tailwinds such as healthy underlying power demand, a strong pipeline of under-development capacity and a robust capital structure on the balance sheet, I am confident of accelerating the 2030 targets by a few years,” he said.
The company stands by the goal for a 50% reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050, he said.
“Moving ahead, the company is on track to commission ongoing projects for power generation, battery storage and green hydrogen production. The growth capital secured through the recently completed QIP strategically positions us to accelerate the execution of our returns accretive growth plans,” he said.
The company recently raised Rs 5,000 crore to fund its plans in the renewable space. Additionally, it is also actively scouting for acquisition opportunities in the power sector, he said.
Jindal said JSW Energy will no longer remain just an energy generation company, it is becoming a complete energy solutions company. It has got into new forms of renewable energy such as FDRE (firm and dispatchable renewable energy) and hybrid projects. It will get into equipment manufacturing as part of supply chain de-risking, he said.
With 2.6 GW of projects, which are currently under construction, and which are slated for commissioning during the current fiscal, the company is on track to meet the 10 GW installed capacity target by FY25, which it had first articulated three years ago, Jindal said.
“FY24 was an inflection point for your company. The current total installed capacity stands at around 7.3 GW across thermal, hydro, solar and wind. This has grown by 2.7 GW over the past two years, reflecting a 26% CAGR increase,” he said.
He said by securing an additional renewable project bids of 4 GW through the auction processes, JSW Energy’s current locked in generation capacity has increased to 13.9 GW. The company has also secured energy storage projects of 3.4 GHh which are currently in the developmental stage, he said.
“This was achieved on the back of a strong underlying growth in power demand, a robust bidding environment, the company’s superior execution capabilities and the strength of its balance sheet,” he said.
Jindial said the company is accelerating by aspiring to grow at a 22% CAGR between FY23 and FY30. “While pursuing this rapid growth, the leverage profile of the company will continue to be best-in-class. At all times, it will remain our endeavour to maintain our sustained normalised net debt to Ebitda multiple below 4.0x” he said.
The company recorded its highest Ebitda and the second-highest profit after tax (PAT) in its history, he said.
From: financialexpress
Financial News
