Shares of Torrent Power rose 8 per cent to Rs 1,463.25 apiece on the BSE in intraday trade on Monday after the company received a letter of award (LoA) for a grid-connected wind-solar hybrid project . LoA received from Torrent Power Limited-Distribution Unit for establishment of 150 MW Hybrid Project (RE Power) valued at Rs 1,825 crore.
At 10:50 am, the stock was trading 6.3 per cent higher at Rs 1,440, against 0.6 per cent rise 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 supply power at a rate of Rs 3.65 per kWh.
The energy supply contract will have a duration of 25 years from the start 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 nominal capacity of wind and solar energy will be in a ratio of 2:1. To comply with the 50 percent percent CUF requirement, the company plans to install 245 MW of wind and solar capacity projects against a contracted capacity of 150 MW,โ the company said in an exchange statement.
Earlier on March 16, the company had received a letter of credit from Torrent Power's Limited Distribution Unit for the creation of a 300 MW grid-connected wind-solar hybrid project (RE Power) worth 3,650 crores.
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).
Apart from that, the company has also received a LoA from Maharashtra State Electricity Distribution Co. Limited for supply of 306 MW of solar power under the Mukhya Mantri Saur Krushi Vahini Yojana 2.0 scheme for feeder level solarization under the PM KUSUM scheme.
Torrent Power is one of India's leading power companies with extensive experience in power generation, transmission and distribution, and a proven track record in implementing large power projects.
During the financial year 2023-24, the stock rose 166 per cent against a 30 per cent rise in the benchmark Sensex index. The stock hit an all-time high of Rs 1,515 on March 27, 2024.
Torrent Power reported a 46 per cent drop in its consolidated net profit to Rs 374 crore in the December quarter compared to the same period a year ago, mainly due to lower revenue.
Revenue from operations stood at Rs 6,366 crore compared to Rs 6,443 crore in Q3FY23. Earnings before interest, depreciation and tax (Ebitda) for the quarter fell due to a reduction in profit net LNG marketing and commercial power sales at Rs 478 crore as compared to the corresponding quarter last year.
The board also approved an interim dividend for FY24 of Rs 12 per share.
First published: April 1, 2024 | 11:19 am IS
