Mytrah acquisition, merchant sales power JSW Energy’s Q2

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₹1,650 crore ahead of schedule. In Q2 and H1FY24, Mytrah reported an Ebitda of ₹557 crore and ₹931 crore, respectively. JSW had concluded the acquisition of Mytrah Energy’s renewable assets with 1,753 MW installed capacity in the March quarter.

As such, JSW is also running ahead of schedule in its ramp-up plan for increased energy production and reducing operating and maintenance costs. Most of the targets initially set for FY25 will be reached in FY24 by the end of this year, the power producer said in its earnings call. In Q2FY24, higher merchant sales, which are short term in nature, put up a good show helped by better realizations.

Merchant rate for Q2 was ₹8.17 per unit versus ₹5.90 on the exchange, driving an Ebitda of ₹192 crore. “We maintain that peak power deficit pockets will continue and JSW Energy remains a key beneficiary, especially with the upcoming 700 MW merchant commissioning in second half of FY24E," said analysts from Jefferies India in a report. Overall, in Q2, JSW clocked 83% year-on-year growth in its Ebitda (including other income) to ₹2,008 crore, its highest ever quarterly figure.

Meanwhile, JSW’s growth plans have boosted investor sentiment. JSW Energy and JSW Steel will develop 6.2 GW of renewable capacity, along with 1.8 GW of renewable capacity which includes 85,000-90,000 tons of green hydrogen for green steel production. JSW Energy aims to achieve a total power generation capacity of 20 GW by 2030 from an operational capacity of 6.8 GW presently.