Shares of this large-cap company fell around 2 percent in Monday’s trading session despite signing a Power Purchase Agreement (PPA) with an Indian Public Sector Undertaking (PSU), for a 460 MW Firm and Dispatchable Renewable Energy.
With a market capitalization of Rs. 1,43,199 crores, the shares of Tata Power Company Ltd started Monday’s trading session on a higher note at Rs. 458.60 compared to its previous close of Rs. 454.75. During the trading session, the shares hit a low of Rs. 442.35, losing around 2 percent and are currently trading at Rs. 449 apiece.
According to the exchange filing, Tata Power Renewable Energy Limited (TPREL), a subsidiary of the company, had signed a Power Purchase Agreement (PPA) with SJVN Limited (SJVN), a Miniratna company, for a 460 MW Firm and Dispatchable Renewable Energy (FDRE) Project for 25 years at a tariff of Rs. 4.38/kWh.
The plant is anticipated to generate nearly 3,000 million units (MUs) of power and offsets 2,200 Mn. Kgs of CO2 emissions annually and designed to meet the 460 MW FDRE requirement, integrate solar, wind, and battery storage technologies to ensure efficient energy dispatch during peak hours, thereby stabilizing the grid.
In addition, the total renewables capacity of TPREL has reached 9,421 MW (PPA capacity is 7,978 MW) including 4,906 MW projects under various stages of implementation. The company’s operational capacity stands at 4,515 MW, which includes 3,485 MW solar and 1,030 MW wind.
Furthermore, the company’s solar EPC portfolio is more than 12.8 GWp of ground-mount utility-scale, over 2 GW of rooftop and distributed ground-mounted systems and over 1,00,000 solar water pumps.
Coming onto the company’s financial statements, the revenue decreased by 7 percent from Rs. 15,738 crores during the September quarter to Rs. 14,651 crores in the December quarter. On a contrasting note, the net profits increased by 6 percent from Rs. 1,017 crores to Rs. 1,076 crores during the same timeframe. Furthermore, the company is set to announce its Q4FY24 results on 8 May 2024.
Tata Power has set a target to achieve net zero emissions by 2045 and anticipates surpassing 10,000 MW of renewable projects in the upcoming quarter. The company recently inaugurated 72 MW of renewable capacity and currently maintains a project pipeline totalling 4,752 MW.
Additionally, its manufacturing facility has successfully commissioned 3 GW of solar modules, with plans to commence the production of the fourth GW imminently.
According to recent data, the Tata Group company’s order book stood at Rs. 15,885 crores. Significant orders were secured from major Public Sector Undertakings (PSUs) such as SJVN, NTPC, NLC, NHPC, and many more.
Headquartered in Mumbai, Tata Power Company Ltd is a part of Tata Group which is engaged in electricity generation and electric utility. The company has a diversified portfolio across the entire power value chain from renewable and conventional energy generation to distribution and transmission, trading, storage solutions, and solar cell manufacturing.
Written By Vaibhav Patil
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