CESC subsidiary accepts LoA to set up a 300 MW solar PV power project

CESC announced on Tuesday that Purvah Green Power, a subsidiary of CESC, has accepted a Letter of Award (LoA) from CESC for setting up a solar PV power project. The company reported that Purvah Green Power was selected for the 300 MW solar power project under a tariff-based competitive bidding system. The company is also selected for an additional 150 MW capacity under a greenshoe option.

Following the announcement, shares of CESC were trading higher by 0.55% at ₹199.95 per share.

CESC stated that the power purchase agreement will remain in force for a period of 25 years from the commencement of the scheduled supply date.

The company declared that the 300 MW power project was conducted on an arm’s length basis and was part of the ordinary course of business.

Recently, CESC reported that Purvah Green Power has incorporated a wholly owned subsidiary called Greenpulse Power. The newly incorporated subsidiary will explore opportunities in the renewable power sector.

At the end of the first quarter of FY25, CESC reported a 5.4% year-on-year (YoY) growth in net profit to ₹388 crore. The company’s gross consolidated revenue for the quarter climbed 12.6% YoY to ₹4,918 crore.

In Q1FY25, the company reported a 6.5% YoY rise in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to ₹1,115 crore.

Among the company’s subsidiaries, Dhariwal Infrastructure contributed most to the company’s net profit at ₹112 crore. Meanwhile, Malegaon DF was the laggard during the quarter as it clocked in losses of ₹42 crore.

During the quarter, the company witnessed strong growth in power demand with the Kolkata distribution business growing 8% YoY. The company has also taken several steps for its 3 GW renewable energy initiative including framework agreements with Inox Wind and Suzlon Energy.

Shares of the company have risen by nearly 46% since the beginning of the year. The stock has gained over 117% in the past year.