JSW Energy shares fall 3% in choppy trade; drop 12% in 3 sessions

Shares of JSW Energy, a part of Sajjan Jindal-led O.P. Jindal Group, fell nearly 3% in volatile trade on Wednesday, a day after the company released its earnings report for the fourth quarter and year ended March 31, 2024. The stock has been under stress for the last three sessions, losing nearly 12% during this period.

Early today, JSW Energy shares opened higher at ₹594.85 against the previous closing price of ₹583.85 on the BSE as sentiment was lifted after the company declared a dividend for the financial year 2023-24 and unveiled a plan to raise capital up to ₹10,000 crore.

In the early trade, the stock rose as much as 5.8% to ₹618 levels, but failed to sustain gains and slipped into negative terrain. The JSW Energy share price declined 2.7% to ₹568.15, while the market capitalisation slipped to ₹1 lakh crore marks.  The stock has fallen as much as 8% from the day’s high level of ₹618.

Despite this recent sell-off, JSW Energy shares have seen a strong rally in the last year and touched a 52-week high of ₹651.55 on April 22, 2024, rebounding 171% from its 52-week low of ₹240 hit on May 24, 2023. The counter gained 48% in six months and 39% in the calendar year 2024. In the last one month, the stock corrected over 9% as investors booked profit at higher levels.

JSW Energy released its earnings report post-market hours on May 7, which showed that consolidated net profit rose 29% to ₹351 crore in the March quarter compared to ₹272 crore in the quarter ended on March 31, 2023. The total revenue increased by 3% year-on-year (YoY) to ₹2,879 crore from ₹2,806 crore in Q4 FY23. EBITDA in the quarter grew by a strong 47% YoY to ₹1,292 crore, driven by incremental contribution from renewable portfolio and strong performance by thermal assets.

For the full financial year 2024, profit increased by 17% YoY to ₹1,723 crore, while total revenue was up 10% at ₹11,941 crore. EBITDA for the year grew by 53% YoY to ₹5,837 crore on the back of RE capacity additions and strong thermal performance.

As of March 31, 2024, the consolidated net worth and net debt were ₹20,832 crore and ₹26,636 crore, respectively, resulting in net debt to equity ratio of 1.3x. Liquidity was also steady with cash balances (including unencumbered bank balances, FDs, and liquid mutual funds) at ₹4,691 crores as of March 31, 2024.

The board of the company also approved a dividend payment of ₹2 per share, subject to approval of the shareholders at the forthcoming 30th Annual General Meeting (AGM).

Besides, the board also approved raising of funds up to ₹10,000 crore in one or more tranches. The capital will be raised by way of private offerings or on a preferential allotment basis or a qualified institutions placement or any other method or combination thereof as may be permitted under applicable laws.

The AGM of the company is scheduled on June 28, 2024, where the company will seek shareholders’ nod for dividend payment and raising of funds.

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