Power Play: JSW Energy’s Q4 Results Generate Buzz with Dividend and Big Fundraising Plans
Updated: May 15, 2025 20:04
Image Source: The Economic Times
JSW Energy Ltd. has posted a healthy set of figures for the fourth quarter of FY25, surpassing profit forecasts, declaring a ₹2 per share dividend, and revealing aggressive growth and fund-raising plans.
Q4 FY25 Financials
Consolidated net profit increased 16% year-on-year to ₹408 crore, outpacing analyst forecasts of ₹295 crore.
Revenues rose 16% to ₹3,189 crore due to increased power generation and capacity expansion.
EBITDA expanded by 3% to ₹1,204.5 crore while EBITDA margin reduced from 42.4% previous year to 37.8% as increased finance charges stemming from ongoing capital expenditure and acquisition activity weigh.
Operational and Strategic Developments
Capacity came in strong for Q4 up by 2.8 GW with additions in new wind of 478 MW and thermal of 2,150 MW capacities.
Net power generation increased 24% to 7.9 billion units, with renewable generation rising 32% and long-term PPA generation rising 28% compared with the previous year.
JSW Energy acquired KSK Mahanadi Power Ltd. in March for ₹16,084 crore; 1,800 MW of this is presently operational and 95% tied up on long- and medium-term PPAs.
The organization surpassed its FY25 operating capacity goal of 10 GW and updated its 2030 goal to 30 GW of generation capacity and 40 GWh of storage.
Dividend Announcement
The Board had recommended a final dividend of ₹2 per equity share for FY25, conditional upon approval by the shareholders at the forthcoming AGM.
This is JSW Energy's trend of regular dividend payment in recent times.
Fundraising Plans
The Board sanctioned raising up to ₹10,000 crore through the issue of eligible securities, such as qualified institutional placement (QIP) or other approved mechanisms, subject to approvals from regulatory bodies.
Fundraising will assist with ongoing growth, acquisition, and the ambitious 2030 goals of the company.
Stock Performance and Analyst View
JSW Energy shares closed 2.6% higher at ₹487.3 on the BSE before the results.
Although there has been a recent fall (down 18% over the past 12 months), there is still optimism with nine out of sixteen monitors tracking the stock having a 'buy' rating and an average 12-month price target of ₹600.