Share price of one of the leading power distributors in India moved up by 12.4 percent and hit a new all-time high at Rs. 1,287.5 on Monday, after the announcement of receiving a Letter of Award.
With a market cap of Rs. 59,757.5 crores, at 10:38 a.m. the shares of Torrent Power Limited were trading in the green at Rs. 1,248.15 on NSE, up by 9.05 percent, compared to its previous closing price of Rs. 1,144.6.
The company has delivered about 73.8 percent in the last six months compared to nearly 134.7 percent of multibagger returns in the last one year. So far in 2024, it has given around 32.3 percent of positive returns.
According to the recent filings on the stock exchanges, Torrent Power has emerged as a successful bidder and has received a Letter of Award (LOA) from Maharashtra State Electricity Distribution Co. Limited (MSEDCL) on March 7th.
The LoA received by the company is for the supply of 306 MW Solar power under the Mukhya Mantri Saur Krushi Vahini Yojana 2.0 scheme for implementing feeder-level solarisation under the PM-KUSUM Scheme.
The Projects will be installed at 48 different locations in the Nasik District, and the contract period shall be 25 years from the commissioning of the project.
At an estimated cost of Rs. 1,540 crore, the project is expected to be commissioned within 18 months from the LoA, and the tariff for the project is Rs. 3.10 per kWh for the period of 25 years.
MSEB Solar Agro Power Limited (MSAPL) has formed SPV namely MSKVY Ninth Solar SPV Limited (Project SPV), to enable the development of the project.
As per the terms of the PM-KUSUM Scheme, Torrent will acquire 100% of the equity shares of Project SPV and receive Central Finance Assistance (CFA) for eligible capacity from the Central Government.
In terms of financials, the revenue from operations of Torrent Power fell by 8.5 percent QoQ from Rs. 6,961 crore in Q2 FY23-24 to Rs. 6,366 crore in Q3 FY23-24, accompanied by a decrease in net profit of 31.12 percent from Rs. 543 crore in Q2 FY23-24 to Rs. 374 crore in Q3 FY23-24.
Torrent Power is one of the leading power distributors in India and in its licensed areas in Gujarat has the distinction of having the lowest AT&C losses and best reliability indices in the country.
The company is a Rs. 25,694 crore integrated power utility of the Rs. 37,600
crore Torrent Group and is one of the biggest companies in the Indian power sector, with a presence across the entire power value chain including generation, transmission and distribution.
Written by Shivani Singh
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