Torrent Power shares rallied 8 per cent to Rs 1,463.25 apiece on the BSE in Monday’s intraday trade after the company received Letter of Award (LoA) for a Grid-Connected Wind Solar Hybrid Project. The LoA has been received from Torrent Power Limited-Distribution Unit for setting up of 150 MW (RE Power) hybrid project valued at Rs 1,825 crore.
At 10:50 AM, the shares were trading 6.3 per cent higher at Rs 1,440 as against 0.6 per cent gain in the benchmark S&P BSE Sensex.
The renewable energy project will be commissioned within 24 months from the signing of Power Purchase Agreement (PPA), and will supply power at a tariff of Rs 3.65 per kWh.
The contract for supply of power will be 25 years from the commissioning of the project.
“The annual CUF (capacity utilisation factor) will not be less than 50 per cent for any year during the term of the PPA and rated power capacity of wind and solar will be in the ratio of 2:1. To meet the 50 per cent CUF requirement, the company plans to install 245 MW of wind and solar capacity projects against a contracted capacity of 150 MW,” the company said in an exchange filing.
Earlier on March 16, the company had received LoA from Torrent Power Limited-Distribution Unit for setting up of 300 MW (RE Power) Grid-Connected Wind Solar Hybrid Project worth Rs 3,650 crore.
The contract period for this project, too, is 25 years from the commissioning of the project, and shall be commissioned within 24 months from Power Purchase Agreement (PPA).
That apart, the company also received an LoA from Maharashtra State Electricity Distribution Co. Limited for supply of 306 MW Solar power under Mukhya Mantri Saur Krushi Vahini Yojana 2.0 scheme for feeder level solarisation under PM KUSUM Scheme.
Torrent Power is one of the leading power companies in India with an all-round experience in generation, transmission and distribution of power, and a proven track record of implementing large power projects.
During the financial year 2023-24, the stock zoomed 166 per cent as against a 30-per cent surge in the benchmark Sensex index. The stock hit a lifetime high of Rs 1,515 on March 27, 2024.
Torrent Power reported a 46 per cent dip in its consolidated net profit to Rs 374 crore in the December quarter compared to the year-ago period mainly due to lower revenues.
Revenue from operations stood at Rs 6,366 crore compared to Rs 6,443 crore in Q3FY23. Earning before interest, depreciation and tax (Ebitda) for the quarter fell due to a reduction in net gain from trading of LNG and merchant power sales by Rs 478 crore compared to the corresponding quarter of last year.
The board also approved interim dividend for FY24 of Rs 12 per equity share.
First Published: Apr 01 2024 | 11:19 AM IST
