The shares of this largecap company jumped around 2 percent after signing an MoU to set up 200 fast charging stations for electric commercial vehicles. The stock has delivered more than a 60 percent return to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 1,43,183 crores, the shares of Tata Power Company Ltd started Friday’s trading session on a higher note at Rs. 446 compared to its previous close of Rs. 439.90.
During the trading session, the shares hit a high of Rs. 449.60, gaining around 2 percent and are currently trading at Rs. 445 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that one of its subsidiaries Tata Power Renewable Energy Limited had signed a Memorandum of Understanding (MoU) with Tata Motors Limited to set up 200 fast-charging stations for electric commercial vehicles in all metros cities viz. Mumbai, Delhi, Chennai, Bengaluru, Kolkata.
As part of this initiative, Tata Motors and Tata Power will provide exclusive charging tariffs for Tata Motors electric CV owners, resulting in lower operating costs and increased profitability for its customers.
The planned expansion will provide electric commercial vehicle users across India access to nearly 1,000 strategically located fast chargers.
Financials:
Looking at the company’s financial statements, the revenue jumped around 9 percent from Rs. 15,847 crores during the March quarter to Rs. 17,294 crores in the June quarter. In addition, the net profits surged by around 15 percent from Rs. 1,046 crores to Rs. 1,189 crores during the same period.
Recent Development:
Recently, Tata Power officially commenced the production of solar cells at its newly established manufacturing plant in Tirunelveli, Tamil Nadu, which is recognised as India’s largest single-location facility for solar cell and module manufacturing.
This development is a significant milestone for Tata Power and the Indian renewable energy sector, as it aims to enhance domestic manufacturing capabilities and support the country’s clean energy goals.
The plant will ramp up to a total capacity of 4.3 GW, with the remaining 2 GW expected to be operational within the next 4 to 6 weeks. Tata Power has invested approximately Rs. 4,300 crore to establish this facility.
Additionally, Tata Power currently holds a 20 percent market share in the solar rooftop segment and is looking to expand its presence further, particularly under government initiatives such as the PM Surya Ghar Yojana.
Furthermore, as production stabilizes, Tata Power plans to explore opportunities for broader market distribution, potentially exporting to international markets, including the U.S.
Capital Expenditure Plans:
Tata Power has set a capital expenditure (capex) target of Rs. 20,000 crores for FY25, a substantial increase from Rs. 12,000 crores in FY24. This investment will primarily focus on expanding its renewable energy portfolio and enhancing transmission and distribution capabilities.
Electric Vehicle (EV) Infrastructure:
Tata Power has expanded its network under the brand name of EZ Charge to over 1,00,000 home chargers, more than 5,500 public, semi-public, and fleet charging points, along with more than 1100 bus charging stations across 530 cities and towns.
Renewable Energy Expansion:
The company aims to increase its clean energy capacity from 9 GW to 15 GW over the next five years. This includes a strong emphasis on solar energy, with plans to install 2,800 MW of pumped storage projects by FY29.
Company Profile:
Tata Power Company Ltd is primarily involved in the business of the generation, transmission and distribution of electricity.
Written By Vaibhav Patil
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