JSW Energy Issues ₹450 Crore Guarantee for Utkal Unit

9 Sep 2024 , 11:36 AM

JSW Energy, led by Sajjan Jindal, issued a corporate guarantee of up to ₹450 Crore on September 6 for its 95% subsidiary, JSW Energy (Utkal) Ltd.

JSW Energy (Utkal) Ltd, previously known as Ind-Barath Energy Utkal Ltd, was granted working capital credit facilities worth ₹450 Crore.

JSW Energy provided a corporate guarantee to support its subsidiary’s working capital credit facilities, confirmed in a stock exchange filing. The guarantee is issued on an arm’s length basis, ensuring no promoter or promoter group involvement in the transaction.

This corporate guarantee represents a contingent liability for JSW Energy, but the company has indicated there will be no immediate financial impact.

JSW Energy emphasized that the guarantee is for its 95% subsidiary, part of its consolidated group, with no current impact on the company’s financials.

At the time of writing on September 9, 2024 at11:30 am, JSW Energy’s shares were trading 3.28% higher at ₹732.80. JSW Energy’s stock has seen a 43% gain over the past six months. JSW Energy’s stock has gained a total of 69% in the last one year.

In the first quarter ending June 30, 2024, JSW Energy reported an 80% year-on-year increase in net profit, reaching ₹521.8 Crore, compared to ₹289.9 Crore in the previous year.

Revenue from operations declined by 1.7% to ₹2,879.5 Crore, down from ₹2,927.9 Crore in the same period last year. The company’s EBITDA grew 16% to ₹1,417.9 Crore, with the EBITDA margin rising to 49.2% from 41.7%.