JSW Energy receives LoA for 200 MW wind-solar hybrid power project; stock trades higher

JSW Solar announced on Tuesday that the company’s wholly-owned subsidiary, JSW Neo Energy has received a Letter of Award from the Maharashtra State Electricity Distribution for a 200 megawatt (MW) wind-solar hybrid power project. Following the announcement, shares of the company were trading by 1.54% at ₹726.55 per share. The company reported that it won the order by a tariff-based competitive bid. With the addition of the 200 MW wind-solar hybrid project, the company’s total locked-in generation capacity has grown to 17.2 gigawatts (GW). The locked-in generation capacity also includes a hybrid capacity of 2.9 GW. The company currently has an installed generation capacity of 7.5 GW and expects to increase it to 10 GW by FY25. JSW Energy further added that it has projects of 2.3 GW across wind, thermal, and hydro segments. Additionally, the company has a renewable energy pipeline of 7.3 GW. JSW Energy has 4.2 GW-hour of locked-in energy storage capacity through battery energy storage systems and hydro-pumped storage projects. By 2030, the company is targeting to reach 20 GW of generation capacity and 40 GWh of energy storage capacity. JSW Energy is aiming to achieve carbon neutrality by 2050. Last week, the company informed that JSW Neo Energy had received a Letter of Award for a 250 MW wind power project from Adani Electricity Mumbai. In Q1 FY25, JSW Energy reported an 80% year-on-year rise in net profit to ₹522 crore. Meanwhile, the consolidated revenue grew incrementally by 1% YoY to ₹3,043 crore. The company’s earnings before interest, depreciation, taxes, and amortization (EBITDA) came in higher by 21% YoY to ₹1,581 crore during the quarter. The company credited higher generation for the growth in EBITDA. Shares of the company have risen by nearly 77% since the beginning of the year. The stock has gained over 109% in the past year.

Allcargo Logistics said on Monday that its LCL volume for July 2024 stood at 818,000 cubic metres, similar to its highest-ever monthly volume, which was recorded in August 2022. Following the announcement, the firm's shares soared over 9% on Tuesday. The company said the LCL volume represents an increase of 6% compared to the previous month and 5% compared to July 2023. “Volumes have steadily increased on the back of improved global trade and the company’s growth initiatives. We expect the momentum to remain through the year. On the back of volumes, freight rates are also anticipated to stay high until the end of peak season,” the company said in a release. The firm also witnessed an increase in volume in all major regions, such as the USA, Latin America, Europe, Asia Pacific, and the Middle East. The firm also stated that the improvement in 40-foot container usage is due to increased volume and focus on this type of container. Meanwhile, the firm’s FCL volume for the month of July 2024 was similar to May and represented a growth of 7% over July 2023. FCL volumes were flat overall, with marginal declines in China, Vietnam, and Mexico, while an increase was witnessed in India, Turkey, and the UAE. During the first quarter of fiscal year 2025, revenue from operations rose 17% year-over-year (YoY) to ₹3,813 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 5% to ₹133 crore, while the EBITDA margin fell to 3.5% from 4.2% in the same quarter a year ago. Net profit fell 96% YoY to ₹4.3 crore during the quarter. The firm’s contract logistics business reported revenue growth of 22% year over year, driven by increased wallet share from existing clients. The firm's shares have lost over 18% since the beginning of the year, but the stock has stayed flat in the last year.

Asian markets update at 7 am

The GIFT NIFTY is up 0.2%, indicating another positive start for the NIFTY50 today. Other Asian markets are also trading in the green. Japan's Nikkei 225 is up 1%, while Hong Kong's Hang Seng Index is up 0.4%.

U.S. market update

• Dow Jones: 40,890 (▲0.1%)
• S&P 500: 5,620 (▲0.4%)
• Nasdaq Composite: 17,918 (▲0.5%)

U.S. indices advanced on Wednesday after a summary of Federal Reserve’s July meeting last month reinforced the hope of lower rates in the coming days. The minutes said that several of the 19 Fed officials saw a plausible case for cutting rates by 0.25% at the July meeting or suggested support for the decision. Additionally, the vast majority officials indicated that it would be appropriate to ease the policy at their next meeting in September, if inflation data continued to come in as expected. Currently, traders are pricing in a 100% chance of a rate cut in September as per CME FedWatch tool.

NIFTY50

• August Futures: 24,798 (▲0.3%)
• Open Interest: 4,28,732 (▼0.5%)

The NIFTY50 extended its winning streak for the fifth consecutive day and closed above the previous day's high, indicating further bullishness. The index has also formed a bullish candle on the daily chart and shows no signs of reversing or pausing. On the daily chart, the index is approaching the second bearish gap between 24,850 and 24,950, which was formed on the 2nd of August after the NIFTY50 breached the 25,000 level. Traders may want to monitor the price action around this area, as a close above it will signal further bullishness. However, traders should also be wary of profit-taking scenarios as the index approaches the 25,000 level.