Shares of Torrent Power rose 8 percent to Rs 1,463.25 apiece on the BSE during intraday trade on Monday after the company received a 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 a 150 MW hybrid project (RE Power) worth Rs 1,825 crore.
At 10.50 am, the shares were trading 6.3 per cent higher at Rs 1,440, against a 0.6 per cent gain in the benchmark S&P BSE Sensex.
The renewable energy project will be commissioned within 24 months of signing the Power Purchase Agreement (PPA) and will provide power at the rate of Rs 3.65 per kWh.
The power supply contract runs for 25 years from the commissioning of the project.
“The annual CUF (capacity utilization factor) will not be less than 50 percent for any year during the term of the PPA and the rated energy capacity of wind and solar will be in the ratio of 2:1. To meet the 50 percent As per CUF requirement, the company plans to install 245 MW of wind and solar 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 a 300 MW (RE Power) Grid-Connected Wind Solar Hybrid Project worth Rs 3,650 crore.
The contract period for this project is also 25 years from the commissioning of the project, and will be commissioned within 24 months of the Power Purchase Agreement (PPA).
In addition, the company also received an LoA from Maharashtra State Electricity Distribution Co. Limited for supplying 306 MW of solar energy under Mukhya Mantri Saur Krushi Vahini Yojana 2.0 scheme for feeder level solarization under PM KUSUM scheme.
Torrent Power is one of the leading energy companies in India with an all-round experience in power generation, transmission and distribution, and a proven track record in implementing major energy projects.
During the financial year 2023-2024, the stock rose 166 percent, while the benchmark Sensex index rose 30 percent. The stock hit an all-time high of Rs 1,515 on March 27, 2024.
Torrent Power reported a 46 percent decline in consolidated net profit to Rs 374 crore in the December quarter compared to the same period last year, mainly due to lower revenues.
Revenue from operations stood at Rs 6,366 crore compared to Rs 6,443 crore in Q3FY23. Earnings before interest, depreciation and taxes (Ebitda) for the quarter fell due to a decline in net profit from LNG trading and merchant power sales by Rs 478 crore compared to the corresponding quarter last year.
The board also approved an interim dividend for FY24 of Rs 12 per equity share.
First print: April 1, 2024 | 11:19 am IST