The shares of the leading power generation company jumped after the company secured a prestigious work order for a 400 MW Hybrid project.
Tata Power Company Ltd has a market capitalization of Rs 1.42 lakh crore, the shares were trading at Rs 445.70 per share, increasing around 0.16 percent as compared to the previous closing price of Rs 445.05 apiece.
Reason for rise:-
According to the exchange filing, Tata Power Company Ltd secured a Letter of Award (LoA) from the Maharashtra State Electricity Distribution Company Limited (MSEDCL), a wholly owned entity under the Maharashtra Government, for the development of a 400 MW Wind-Solar Hybrid project in Maharashtra.
Additionally, the LoA contains an original contractual capacity of 200 MW, as well as a greenshoe option for an additional contracted capacity of 200 MW, making this TPREL’s largest renewable energy project in Maharashtra to date.
Furthermore, the project is part of MSEDCL’s larger endeavor to satisfy the state’s Renewable Purchase Obligation (RPO) and address future electricity demand at reasonable rates. The LoA was issued via a competitive bidding procedure using an electronically-based reverse auction platform.
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Moreover, TPREL’s expertise in large-scale renewable projects helped secure the contract, with completion expected within 24 months of the Power Purchase Agreement with MSEDCL. The project will reduce carbon emissions by an estimated 895 million kilograms of CO2 annually.
However, with this order, the company’s total renewable energy capacity now stands at 10.5 GW with 5.7 GW of projects in various stages of implementation. Its operational capacity has reached 4.8 GW, comprising 3.8 GW of solar and 1 GW of wind energy projects.
Financial performance:-
Examining the company’s financial condition, revenue ramped up by 5 percent from Rs 15,213 crore in Q1FY24 to Rs 17,294 crore in Q1FY25, during the same time frame net profit zoomed significantly by 3 percent from Rs 1,141 crore to Rs 1,189 crore.
Company profile:-
Tata Power Company Limited is an India-based integrated power company. The principal business of the Company is the generation, transmission, and distribution of electricity. The Company’s segments include Generation, Renewables, Transmission and Distribution, and Others.
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Written by:- Abhishek Singh
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