The shares of one of the leading power utility firm gained 1.8 percent to ₹1,169.30 per share after the company received a contract worth ₹2,700 crores for the setting up of 325 MW wind and solar power plants.
At 12:45 p.m., Torrent Power Ltd. shares were trading at ₹1,143 per share, down 0.53 percent from the previous close price on the Bombay Stock Exchange. The Company has a market capitalization of ₹54,937 crore.
The company has received a Letter of Award from NTPC Vidyut Vyapar Nigam Limited to provide 770 MW of power through gas-based power projects.
The power supply is scheduled from March 16, 2024, to June 30, 2024, with the possibility of an extension until July 15, 2024. The agreement includes a minimum guaranteed offtake of 388 MUs, ensuring a minimum revenue of approximately ₹440 crore.
Additionally, the company has been granted a Letter of Award by Railway Energy Management Company Limited (REMC) for the establishment of Grid-Connected renewable energy power projects in Maharashtra.
The project involves setting up 325 MW of wind and solar capacity, providing 100 MW of round-the-clock power with or without storage, at a tariff of ₹4.25 per kWh. The total project cost is estimated to be ₹2,700 crore.
Torrent Power Ltd. is a leading integrated power utility company in India with a presence across the generation, transmission, and distribution of power. Its operations are spread across the states of Gujarat, Maharashtra, Uttar Pradesh, and Karnataka.
Torrent Power Ltd. shares gained 62 percent in the last six months, a multibagger return of 120 percent in a year.
The company experienced a 1.1% year-on-year decrease in revenue, dropping from ₹6,443 crore in Q3 FY 2023 to ₹6,366 crore in Q3 FY 2024. Additionally, there was a 46% decline in net profit, falling from ₹695 crore to ₹374 crore over the same period.
The company’s adjusted EBITDA and PAT for Q3 FY 2023-24 showed an increase of ₹ 49 crore and ₹ 31 crore, respectively, compared to Q3 FY 2022-23. This growth was attributed to a rise in contributions from licensed distribution businesses and renewable businesses, stemming from capacity additions and higher wind Power Load Factor (PLF).
In the year 2023, the company expanded its capacity by an additional 50 MW, bringing the total acquired capacity to 281 MW and the operational capacity to 1,068 MW. This expansion included the acquisition of a 50 MW solar power plant in Kamareddy, Telangana, and complete ownership of Sunshakti Solar Power Projects Private Limited and Wind Two Renergy Private Limited, comprising a 27 MW wind power project commissioned on May 27, 2023.
Written by Omkar Chitnis
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