Shares of this electricity generation company jumped around 3 percent after entering into a Power Delivery Agreement for a 13.2 MW AC Group Captive Solar Plant with Dr Abhay Firodia Group of Companies. The shares have delivered more than 50 percent returns on a YTD basis.
With a market capitalization of Rs.1,08,018 crores, the shares of Tata Power Company Ltd started Wednesday’s trading session positively at Rs. 332.10 compared to its previous close of Rs. 330.80. The share hit a high of Rs. 340.50, gaining around 3 percent and closed its day at Rs. 337 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing mentioned that their fully owned subsidiary company Tata Power Renewable Energy Limited had entered into a Power Delivery Agreement (PDA) with Dr Abhay Firodia Group of Companies, i.e., Force Motors Limited and Jaya Hind Industries Private Limited, for supplying Green power for 25 years under Group Captive scheme.
Under this agreement, Force Motors Limited, a fully vertically integrated automobile company, will be utilising 6.2 MW AC power and consuming 13.64 Million Units (MUs) of power annually and Jaya Hind Industries Private Limited will be utilising 7.0 MW AC power, i.e., consumption of 15.40 MUs annually.
Furthermore, Tata Power Renewable Energy Limited will oversee the development, management, and maintenance of the group’s captive solar plant facility. From this, Dr Abhay Firodia Group of Companies would benefit from a clean and reliable power supply from the plant and have the chance to actively contribute to environmental sustainability.
Coming onto the company’s financial statements, the revenue increased marginally by around 3 percent from Rs.15,213 crores in the June quarter to Rs. 15,738 during the September quarter. On a contrasting note, during the same timeframe, the net profit declined by 6 percent from Rs.1,141 crores to Rs.1,017.
The company has achieved an order book of 4,391 MW which amounts to Rs. 18,700 crores and they aim to achieve an order book of Rs. 20,000 crores by FY 30. Moreover, the company is expected to invest a CAPEX of Rs. 11,000 crores for the full year and they aim to deliver good returns in the renewable sector and plans to focus on hybrid projects and 24/7 renewable power.
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
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
