Value Creation
JSW ENERGY
Strategy and Business Model
Capital Allocation
Strategic Financing Decisions
Organizational Architecture
Strategic Cost Management
Corporate Risk Management
Mergers, Acquisitions & Restructuring
Corporate Governance
Diversification beyond power: JSW's green hydrogen subsidiary signed a MoU with Indian Oil Corporation
Integrated Operations: JSW's hydro power plants in Himachal Pradesh are providing peak power to the grid
Renewables Focus: JSW Energy won a 1.2 GW solar power project in Andhra Pradesh
Disciplined Approach: rejected a proposed acquisition of a thermal power plant due to its profitability and alignment with the company's renewable energy focus. ♻
Balanced Growth: investing ₹5,000 crore in a 500 MW
Debt Optimization: JSW refinanced a portion of its debt in November 2023 at a lower interest rate
Flat Hierarchy: empowered its regional business units to approve renewable energy projects.
Diversified funding mix: issued ₹1,500 crore green bonds in September 2023 ♻
Focus on sustainable finance: Partnered with the World Bank's IFC to secure funding for its green hydrogen initiatives.
Financial Risk Management: entered into currency hedging contracts to mitigate forex fluctuations
Talent Acquisition and development: partnered with IIT Delhi to launch a training program on green hydrogen technologies. ⭐
Performance driven culture: implemented a bonus program based on achieving specific sustainability targets
Operational efficiency: implemented advanced data analytics at its thermal power plants,leading to a 5% reduction in fuel consumption.
Technology Adoption: partnered with a robotics company to automate inspection and maintenance tasks:
Supply chain optimization: negotiated long-term contracts with key solar panel suppliers, securing stable pricing and reducing procurement costs.
Proactive risk identification: conducted a cyber security audit, identifying vulnerabilities and implementing corrective measures
Business continuity planning: tested its backup power generation systems at its headquarters
Cybersecurity focus: launched a cyber awareness campaign for employees
Value- accretive acquisitions: acquired a stake in a leading battery storage company.
Portfolio Optimization: Divested its non-core coal mining assets, streamlining its operations and focusing on cleaner energy sources.
Integration expertise: successfully integrated a recently acquired wind power company
Transparency and disclosure: SW published its first Sustainability Report, showcasing its commitment to ESG principles.
Independent board: appointed an independent director with expertise in renewable energy
Sustainability focus: linked executive compensation to achieving specific sustainability targets
Acquired EonStar Technologies FY2022 ⭐
Increase in EBITDA FY2021: 3161.18 - FY2022: 4146.23✅**
5% Increase in NOPAT - ₹ 1942.84 (cr) : additional revenue from this segment ✅ :
Reduced capital employed due to improved operational efficiency - Higher EVA: ₹158.13 (cr) ✅
3-5% Cost reductions due to improved grid stability ✅
Residual Income : FY 2022 ₹1728.96 (cr) ✅
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Divestment : JSW Barmer Coal Mining Company FY2023 ⭐
Decrease in Residual Income FY2023 ₹ 1464.51(cr) 🚩
10% Increase in Fair Gross Value translating to a gain of ₹1000 (bn) ✅
Return on Capital Employed fell from 11.67% to 7.00% 🚩
Decrease in EBIT FY2022: 3015.18 - FY2023: ₹2787.14 🚩
GreenWind Energy Pvt Ltd FY2023 ⭐
7% increase in JSW's total wind power generation capacity, strengthening its market position and renewable energy portfolio. ✅
Increased Net Income therefore improving ROA by a cost saving of ₹150 million ✅:
Increased CFROI FY2022:15.29% - FY2023: 20.67% ✅
Technology Adoption: Increased supply chain visibility ✅
Drones and AI-powered image analysis for remote inspection - improving CFROI by 1% ✅
Implement AI-powered predictive maintenance systems-
boosting EBITDA by 3% : ₹4146.23 ✅
Improved Stock Price and Total Shareholder Return (TSR)
Increase in PE ratio FY2021: 17.14 - FY2022: 28.07 ✅
Increased PB Ratio FY2021: 0.97 - FY2022: 2.81 ✅
Reduced financial losses from data breaches
Improved regulatory compliance
Improved customer trust and reputation
JSW's Dolvi Steel plant, Maharashtra India ⭐
Backup power systems were activated
Critical production equipment was shut down and secured.
ROE improved by 2% ✅
Minimized Downtime protected Revenue of 7% ✅
Enhanced environmental performance, ESG score improved ✅
Regional unit, Rajasthan (rooftop solar project) ⭐
Decision making resulted in 30% faster project completion
Increased revenue generation by 2.5% ✅
Reduced overhead costs by 25% (shorter project timeline)
New Revenue Streams: increase by 6% ✅
Enhanced Brand reputation ✅
Reduced long term costs ✅
Production capacity
Expansion plans
ROA - FY2021: 3.74%- FY2022: 6.78%
ROE - FY2021: 5.67%- FY2022: 10.01%
Improved market presence
Customer satisfaction improved by 3% ✅
Wind power project in Rajasthan ⭐
Debt to Equity Ratio: Healthy DE ratio, no change ✅
Total Shareholder Return (TSR) decreased by 6%, strategic acquisition not aligning with shareholders benefits ⚠
PB Ratio FY2022: 2.81- FY2023: 2.11 showed consistent earnings and growth potential ✅
ROCE Increased - 8.72% TO 11.67% ✅
EVA gone up showing positive figures of 291.84 ✅
NOPAT increased substantially to 2238.27 ✅
Interest Expense reduced from 895.65 to 776.91 ✅
EVA & CVA have started showing positive figures
Reduced debt burden frees up resources for investments ‼
Green bond issue carried a 0.25% lower interest rate compared to conventional bonds 💥
RETURN ON EQUITY- 5.67% TO 10.01% ✅
RETRN ON ASSETS - 3.62% TO 6.75% ✅
Issuing green bonds aligns with JSW's sustainability goals ✅
Improved EVA in FY2022
Positive TSR FY2022
Hedging contracts locked in favorable exchange rates, protecting $7 million 🔒
Mitigated currency risk, reducing JSW's overall volatility ‼
Strong ESG disclosure leads to better stakeholder understanding and confidence leading to Improved CVA ✅
ESG performance attracted favorable regulatory treatment and access to green financing, potentially contributing to a higher SGR ✅
well-functioning board strengthens investor confidence leading to Higher PB RATIO FY2022 - 2.81 👥
Reduced environmental remediation costs ❎
Higher Economic Value Added (EVA): Linking compensation to sustainability goals aligns corporate performance with stakeholder expectations
Gross Profit Margin was highly impacted and increased potentially ✅
Increased Inventory Turnover Ratio: solar project development involves limited physical inventory ✅
EBITDA growth by 6% ✅
Changes in WC, impacted current ratio ✅
Improved CFFO
ITR &DSO improved, streamlined resource management
Cost Reduction