Shares of this leading Indian energy company engaged in multiple facets of the power sector, jumped nearly 7 percent following the signing of a Memorandum of Understanding (MoU) with the Government of Gujarat to develop solar and wind energy projects.
Share Price Variation
In Tuesday’s trading session, Torrent Pharma Limited‘s share price hit an intra-day high of Rs.1,900.7 per share, approaching its 52-week high of Rs.1,906.55 apiece. The stock rose 6.8 percent from its previous close of Rs.1,780.2 per share.
What is the news
Torrent Power signed a Memorandum of Understanding (MoU) on September 16, 2024, with the Government of Gujarat to develop a 5 GW (GigaWatt) solar, wind, or solar-wind hybrid project in Dwarka District, Gujarat.
Torrent Power has committed to invest Rs.64,000 crore for a range of green energy projects, including the specific 5 GW project in Dwarka.
In addition to the MoU for the 5 GW project, Torrent Power has also outlined plans to achieve a 10 GW renewable energy capacity by 2030.
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Business Segment Overview
Torrent Power’s business segments span across multiple energy sectors. The company operates 2,730 MW (MegaWatt) of gas-based and 362 MW of coal-based thermal power plants.
In solar energy, Torrent Power has 368 MWp (Megawatt peak) of operational capacity, with 1,315 MWp under development and 460 MWp in commercial and industrial projects, including 35 MWp already commissioned.
For wind power, Torrent Power has 921 MW operational, with 1,237 MW under development and 100 MW in C&I projects. In transmission, the company manages 355 km of 400 kV and 128 km of 220 kV DC lines, with ongoing projects including 60 km in Khavda and 44 km in Solapur.
Recent Projects
The company in a joint venture with Power Grid Corporation of India Limited (74:26), is working on a transmission project to evacuate power from a 4.5 GW renewable energy project in Khavda, Gujarat. The project, costing Rs.800 crore, has a 35-year asset life.
Torrent Power is also developing the Solapur Transmission project for 1,500 MW of renewable energy, with an expected cost of Rs.470 crore and an annual fixed cost of Rs.50 crore over 35 years.
Additionally, they are exploring the development of a Green Ammonia production facility with a capacity of 1,00,000 KTPA (Kilotonnes per annum). The project requires an investment of Rs.7,200 crore.
Financials
For the quarter ending June 2024, Torrent Power Ltd reported a significant net profit of Rs.996 crore, marking an 87.2 percent increase compared to Rs.532 crore in Q1 FY24. Revenue from operations rose to Rs.9,034 crore, up 23.2 percent from Rs.7,328 crore in the same period.
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Company Profile
Torrent Power is a prominent Indian energy company with a presence across major states. With a generation capacity exceeding 4 GW, it operates a diverse portfolio of coal, gas, solar, and wind power plants and maintains some of the lowest transmission and distribution losses in the country.
Written by – Siddesh S Raskar
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