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JSW Energy aims for significant growth with strong capex plans targeting 10 GW by FY25-end and a renewable project pipeline expanding to 20 GW by 2030. Despite a 0.7% YoY revenue decline to Rs 3,238 crore and a 14% YoY rise in net generation, the acquisition of KSK Mahanadi is expected to be value accretive. The company maintains a robust balance sheet with net debt at 0.9 times.
The National Stock Exchange (NSE) has expanded its futures and options (F&O) segment by adding 45 new stocks, effective November 29, 2024, increasing the total to 223. This inclusion, following SEBI’s revised criteria, aims to enhance liquidity and market participation, featuring notable stocks like LIC, Jio Financial Services, and Zomato. Analysts anticipate that this move will boost trading volumes and improve price discovery for these stocks.
TPG Inc. is reportedly in advanced negotiations to acquire the Indian wind energy assets of Siemens Gamesa, with a potential valuation exceeding $300 million. The firm has outbid several competitors, including industry players and private equity firms, although discussions are still ongoing and no final decisions have been made. Siemens Gamesa's assets include the operation, maintenance, and manufacturing of wind turbines, attracting interest from other bidders like JSW Energy Ltd. and Inox Wind Ltd.
A joint venture between NTPC Green Energy and ONGC Green Energy has emerged as the highest bidder for Ayana Renewable Power, offering approximately $650 million. This bid surpasses that of JSW Energy for the renewable energy firm, which operates solar and wind plants generating 1,600 megawatts in India, with an additional 2,500 megawatts under construction. Following due diligence, the joint venture plans to acquire a 100% stake in Ayana Renewable Power.
Inox Wind has indicated it may not pursue the acquisition of Siemens Gamesa's Indian wind energy unit, despite evaluating the opportunity. Whole-time director Devansh Jain emphasized a conservative capital allocation strategy, avoiding competitive bidding for high-valued companies. This comes as investor interest shifts towards greenfield renewable assets, slowing the sale of nearly 20 GW of operational and under-construction projects in India.
JSW Energy reported a 2QFY25 EBITDA of INR 16.8 billion, falling short of estimates due to lower merchant spreads and a one-time tariff impact, despite a 14% YoY increase in net generation. Adjusted PAT was 20% above expectations at INR 8.5 billion, driven by higher other income and a lower tax rate. The company maintains a full-year capex guidance of INR 150 billion and a target price of INR 900 per share, reflecting strong operational performance and market position.
JSW Energy reported a slight increase in consolidated net profit to Rs 853 crore for Q2 FY25, up from Rs 850 crore in the same quarter last year. Total revenue rose by 2% year-on-year to Rs 3,459 crore, while the company's net debt stood at Rs 24,875 crore, resulting in a net debt-to-equity ratio of 0.9X as of September 30, 2024.
ONGC has emerged as the leading contender to acquire a majority stake in Ayana Renewable Power, which is backed by the National Investment and Infrastructure Fund (NIIF). This move aligns with ONGC's strategy to prioritize de-carbonization and transition to cleaner energy sources, surpassing rival bidder JSW Neo Energy. While discussions are ongoing, the outcome remains uncertain.
On Thursday, stocks such as HUL, Escorts Kubota, NLC India, Nuvoco Vistas, AU SFB, VIP Industries, Thyrocare, and Dr. Lal PathLabs will be in focus. Additionally, ITC, IndusInd Bank, NTPC, ACC, JSW Energy, and several others are set to announce their quarterly earnings on October 24.
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