Tata Group stock generation, transmission, distribution of electricity, manufacturing solar roofs, developing EV charging stations, and many more, in focus upon receiving a Letter of Intent from Rec to develop a special purpose transmission project.
Price Action
With a market capitalization of Rs. 1,44,748 Crores, the shares of Tata Power Company Limited were trading at Rs. 453 per equity share, down 1.6 percent from its previous day’s close price of Rs. 460.35
What Happened
Tata Power Company Limited has received a new Letter of Intent from REC Limited’s wholly-owned subsidiary REC Power Development and Consultancy Limited to acquire ERES-XXXIX Power Transmission Limited, a project special purpose vehicle.
The Project SPV ERES-XXXIX would be developed by Tata Power Company Limited on a Build-Own-Operate Transfer basis, to provide transmission service for 35 years from the Scheduled Date of Commercial Operation i.e., 31st December 2027 with Annual Transmission Charges of Rs. 289.72 Crores.
The project involves constructing a 2 x 1500 MVA, 765/ 400 kV GIS substation at Gopalpur with associated bays at Angul and Gopalpur (OPTCL), with ~190 km of 765 kV double circuit transmission line from the existing Angul substation of PGCIL to the proposed 765 kV GIS substation at Gopalpur and ~12 km of 400 kV line from upcoming OPTCL substation at Gopalpur to the proposed 765 kV GIS substation at Gopalpur.
About the Company
Tata Power Company which is a part of the famous Indian conglomerate the Tata Group, is India’s largest vertically integrated power company, primarily involved in the business of generation, transmission, distribution of electricity, manufacturing solar roofs, developing EV charging stations, and many more.
Tata Power Limited offers a comprehensive range of green energy solutions from Rooftop Solar, Home Automation, and Smart Metering to EV Charging, to promote the adoption of
sustainable lifestyles. It also provides services such as effluent treatment plants, statutory NOC approvals, and many more to ensure smooth business operations.
It also offers an end-to-end solution for charging infrastructure development, ensuring the best charging experience, emphasizing lean, customized, and cost-effective design solutions, along with timely execution and comprehensive operation and maintenance (O&M) services for its clients.
Tata Power Solar the wholly owned subsidiary of Tata Power Company Limited, is its renewable energy arm, focused on solar energy solutions including manufacturing solar panels, and solar systems, and providing solar power project services.
As of FY24 Tata Power Solar is India’s 3rd largest Solar Module manufacturer, with a market share of 7 percent and an annual installed capacity of 4.97 GW. It is also India’s 5th largest solar cell manufacturer with a 6 percent market share and an installed capacity of 0.53 GW.
Financials & Ratios
Its Revenue from operations grew by 13.67 percent YoY from Rs. 15,213 Crores in Q1FY24 to Rs. 17,294 Crores in Q1FY25, accompanied by profits of Rs. 1,141 Crores to Rs. 1,189 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 11.3 percent and a return on capital employed (ROCE) of 11.1 percent. It has maintained a high debt-to-equity ratio of 1.66.
Written by: Bharath K.S
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