COMPANY & DEMAND ANALYSIS OF JSW ENERGY LIMITED.

1. AN ASSIGNMENT ON
SUBMITTED BY
KANISHK KR.SRIVASTAVA
PK BATCH
16181062
COMPANY & DEMAND ANALYSIS

2. 1. Company
information
&
Competitive
advantage

3. Aditya Agarwal Vice President
Chandan Bhattacharya Director
Chhavi Nath Singh SeniorVice President
Girish Deshpande Director -Technical
Gyan Bhadra Kumar SeniorVice President
Nirmal Kumar Jain Director
Pramod Menon Director - Finance
Rakesh Nath Director
Sajjan Jindal Chairman & Managing Director
Sampath Madhavan Secretary
Sanjay Sagar CEO
Sanjay Sagar Joint Managing Director & CEO
Satish Jindal Chief Executive Officer
Shailaja Chandra Director
Sheila Sangwan Director
Tanvi Shete
Additional Non Exe.Non
Ind.Director
Uday Chitale Independent Director
Vijay Paranjape SeniorVice President
Vijay Sinha SeniorVice President
Management team

4.  JSW Energy Ltd, a group company of Jindal South West group, is the first Independent Power Producer in Karnataka, India.
JSW Energy Ltd was incorporated on March 10, 1994 as a joint venture between JSW Steel Ltd and Tractebel S.A., Belgium with the name Jindal Tractebel
Power Company Ltd. In January 18, 2000, the company started commercial operations of Unit-II of 2x130 MW Power Plant at Toranagullu and in August 5,
2000, they started commercial operation of Unit-I of 2x130 MW Power Plant at Toranagullu. In December 2001, Tractebel S A, Belgium sold their share
holdings in the company to ICICI, IDBI and Jindal group companies. Consequent to this, the name of the company was changed from Jindal Tractebel Power
Company Ltd to Jindal Thermal Power Company Ltd on January 17, 2002. In order to have the group identity the company further changed their name to JSW
Energy Ltd on December 7, 2005. In February 10, 2006, the company acquired Raj WestPower Ltd under the share purchase agreement and thus Raj West
Power Ltd became a subsidiary company. In May 5, 2006, they incorporated JSW Energy (Vijayanagar) Ltd as a subsidiary company.
 In April 10, 2009, the company commissioned Unit - I of 2X300MW Power Plant at Toranagullu. In August 31, 2009, they incorporated
JSW Energy (Raigarh) Ltd for setting up a 1,320 MW power plant at Raigarh in Chhattisgarh, based on domestic coal. In September 1,
2009, they commenced commercial operations of Unit - II of 2X300MW Power Plant at Toranagullu. The company is planning to expand
generation capacity to 15,000 MW by 2015. They expect to commission power plants with 570 MW of capacity, comprising 2x135 MW
of Raj WestPower Ltd's 1,080 MW power plant in Rajasthan and 1x300 MW of JSW Energy (Ratnagiri) Ltd's 1,200 MW power plant in
Maharashtra, in fiscal 2010. In addition, the company expects to have additional aggregate generation capacity of 8,250 MW through
their projects under implementation and development.
Company history

5. Shareholding of promoter and promoter groups

6. Listing in stock
indices

7. The company is an established energy company with 860 megawatts, or MW, of operational generating
capacity and 2,790 MW of generating capacity in the construction or implementation phase, 135 MW of
which has been commissioned. In addition, it has power generation projects at an early stage under
development with a proposed combined installed capacity of 7,740 MW. It believes that it is one of the
early entrants in the power trading business. Currently most of its revenue is derived from power
generation. It is the goal and strategy to become a leading full–service integrated power company in the
Indian power sector with presence across the value chain. As part of that strategy and with the aim of
managing sustainable growth and reducing potential constraints on such growth, it has entered into
various joint ventures for the development of transmission lines for its power generation projects, coal
and lignite mining to procure captive fuel supply for certain of its power generation projects and the
manufacture of steam turbines and generators for power plants. It is currently exploring opportunities in
coal mine acquisitions, power distribution business and generation through non–conventional energy
sources.
background

8. 2. COMPANY’S FINANCIAL PERFORMANCE

9. 10,000.00 10,500.00 11,000.00 11,500.00 12,000.00 12,500.00 13,000.00
1
11,161.64
12,512.39
SALES TURNOVER
2016 2015

10. 11,161.64
12,512.39
10,000.00
10,500.00
11,000.00
11,500.00
12,000.00
12,500.00
13,000.00
1
NET PROFIT
2015 2016

11. 1
11,161.64
12,512.39
TOTAL ASSETS
2015 2016

12. 10,000.00
10,500.00
11,000.00
11,500.00
12,000.00
12,500.00
13,000.00
1
11,161.64
12,512.39
TOTAL LIABILITIES
2015 2016

13. PERCENTAGE CHANGE IN PROFIT
 PROFIT FORTHEYEAR 2015- 11161.64
 PROFIT FORTHEYEAR 2016- 12512.39
%AGE CHANGE IN PROFIT - 12.1017%

14. JSW Energy
5%
NTPC
46%
Power Grid Corp
24%
NHPC
16%
Tata Power
9%
MARKET SHARE ONTHE BASIS OF NETWORTH

15. CURRENT MARKET CAPITALIZATION(as on 2nd sept ‘16)

16. STOCK PERFORMANCE

17. 3. DEMAND ESTIMATION AND
FORECASTING:
TREND LINE AND REGRESSION

18. TREND LINE AND REGRESSION
S.NO. YEAR YEAR (X) SALES REVENUE(IN CR.) - Y X-Ẋ Y-Ẏ (X-Ẋ)(Y-Ẏ) (X-Ẋ)²
1 2006-07 1 743 -4.5 -3,222 14500.215 20.25
2 2007-08 2 1,574 -3.5 -2,392 8371.125 12.25
3 2008-09 3 1591.04 -2.5 -2,375 5936.65 6.25
4 2009-10 4 2,372.9 -1.5 -1,593 2389.245 2.25
5 2010-11 5 3,869 -0.5 -97 48.325 0.25
6 2011-12 6 5,016 0.5 1,051 525.36 0.25
7 2012-13 7 6,396 1.5 2,431 3646.125 2.25
8 2013-14 8 5,803 2.5 1,837 4592.275 6.25
9 2014-15 9 6,332 3.5 2,366 8281.875 12.25
10 2015-16 10 5,959 4.5 1,994 8971.74 20.25
n=10 55 39,657 0 0.19 57262.935 82.5

19. a= 148.171
b= 694.096
FORECASTED VALUE FOR 2017 Y = a + bX = (148.171)+(694.096 *11) =7783.227
FORECASTED VALUE FOR 2018 Y = a + bX = (148.171)+(694.096*12) = 8477.323
Thus,
So, 1% change in value of (X), sales value increase by 694.096 times.

20. 743
1,574 1591.04
2,372.9
3,869
5,016
6,396
5,803
6,332
5,959
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
trend line
TREND LINE

21. 4. FORECASTING: MOVING AVERAGE -2,3,4 YEARS

22. YEAR TWO YEAR MOVING AVG.- A F A-F (A-F)²
2006-07 743 - -
2007-08 1,574 - -
2008-09 1591.04 1158.69 432.35 186926.5
2009-10 2,372.9 1582.495 790.4 624692.6
2010-11 3,869 1981.955 1887.095 3561128
2011-12 5,016 3120.96 1,895.5 3592769
2012-13 6,396 4442.735 1953.715 3817002
2013-14 5,803 5706.435 96.2 9249.631
2014-15 6,332 6099.53 232.42 54019.06
2015-16 5,959 6067.28 -107.9 11633.78
2016-17 _ 6145.685
11857420
MOVING AVERAGE METHOD(TWO YEAR)

23. YEAR THREE YEAR MOVING AVG.- A F A-F (A-F)²
2006-07 743 - -
2007-08 1,574 - -
2008-09 1591.04 -
2009-10 2,372.9 1302.80667 1,070.1 1145036
2010-11 3,869 1845.95333 2023.09667 4092920
2011-12 5,016 2610.98667 2,405.4 5786110
2012-13 6,396 3752.78 2643.67 6988991
2013-14 5,803 5093.97333 708.6 502165.9
2014-15 6,332 5738.49333 593.456667 352190.8
2015-16 5,959 6177.00333 -217.6 47342.51
2016-17 6031.32667
18914755
MOVING AVERAGE METHOD(THREE YEAR)

24. YEAR FOUR YEAR MOVING AVG.- A F A-F (A-F)²
2006-07 743 - - -
2007-08 1,574 - - -
2008-09 1591.04 - - -
2009-10 2,372.9 - - -
2010-11 3,869 1570.3225 2298.7275 5284148
2011-12 5,016 2351.7275 2,664.7 7100586
2012-13 6,396 3212.345 3184.105 10138525
2013-14 5,803 4413.6975 1,388.9 1929078
2014-15 6,332 5271.1325 1060.8175 1125334
2015-16 5,959 5886.8575 72.6 5265.316
2016-17 6122.6075
25582936
MOVING AVERAGE METHOD(FOUR YEAR)

25. 2 QUARTER MOVING AVERAGE = ∑ (A-F)² = 11857420
RMSE =1217.447
3 QUARTER MOVING AVERAGE = ∑ (A-F)² = 18914755
RMSE =1911.728
4 QUARTER MOVING AVERAGE = ∑ (A-F)² = 25582936
RMSE = 2064.903
ANALYSIS: Thus 2 Quarter moving average forecast method is marginally better than 4
Quarter moving average method.
So , forecast value of 2017 is between 4928.238 to 7363.132

26. 5. COMPARATIVE ANALYSIS

27. COMPARITIVE ANALYSIS ON THE BASIS OF LAST PRICE,MARKET CAPITAL,SALES TURNOVER,NET
PROFIT ,TOTAL ASSETS.

29. STOCKS RATE AS PER 31ST AUGUST 2016

30. 6. Future strategies &
announcements
 Jsw is said to have reopened talks with the Jaypee group on acquiring three power assets. The two utilities are Bina
Thermal Power in Madhya Pradesh with an installed capacity of 500 MW and the 400 MW Vishnuprayag Hydro Power
in Uttarakhand . The third asset is a 74 per cent stake in Jaypee Power grid, a 74:26 joint venture with Power Grid
Corporation of India Ltd (PGCIL)
 Decides to acquire stressed assets & not to invest in greenfield projects; no plans of equity dilution due to strong
balance sheet.JSW Energy is on a lookout to ramp up its power business as it looks to buyout 4000 MW of stressed
power projects and raise Rs 5000 crore to fund acquisitions.
 Company has recently signed a non binding memorandum of understanding for initiating a due diligence process
for the potential acquisition of a majority stake in Monnet Power Company which is setting up 1,050 Mw coal based
project in Orissa.

31. SINCE JSW ENERGY LIMITED ISAN ENERGY SECTOR COMPANY IT DOESN’T GO FORTHAT RIGROUS MARKETING
PRACTISES OR FOLLOW CERTAIN NEWTECHNOLOGYTHAT IT SHOULD BE INCLUDED INTHIS PRESENTATION
AS SUCH . BUT IT SURELY FOLLOWS ENVIRONMENT FRIENDLY PRACTICESAND SUSTAINABLE RESOURCES
UTILIZATION PROCESSES .
7. TECHNOLOGY AND MARKETING

32. 8. Recommendation
 Company should Focus on innovative products for all segments that has low impact on environment and should be
affordable to customers.
Continuous improvement on Customer Services and Supply chain management system should be done
 The Indian power sector has an investment potential of Rs 15 trillion (US$ 222.36 billion) in the next 4–5 years,
thereby providing immense opportunities in power generation, distribution, transmission, and equipment, according
to Union Minister Mr Piyush Goyal.
 The government’s immediate goal is to generate two trillion units (kilowatt hours) of energy by 2019. This means
doubling the current production capacity to provide 24x7 electricity for residential, industrial, commercial and
agriculture use.
 The Government of India is taking a number of steps and initiatives like 10-year tax exemption for solar energy
projects, etc., in order to achieve India's ambitious renewable energy targets of adding 175 GW of renewable energy,
including addition of 100 GW of solar power, by the year 2022. The cumulative installed capacity of solar power in
India has crossed the 4 Gigawatt mark as of June 30, 2015. The government has also sought to restart the stalled
hydro power projects and increase the wind energy production target to 60 GW by 2022 from the current 20 GW

33. 9. references
 www.thehindu.com/business/jsw-energy
 http://www.moneycontrol.com/financials/jswenergy
 http://www.jsw.in/investors/energy
 http://www.bseindia.com/stock-share-price/jsw-energy-ltd/jswenergy/
 www.google.com

34. THANK YOU