Torrent Power shares gain 4% on bagging ₹50-crore transmission project in Maharashtra
Upstox
2 min read • Updated: February 28, 2024, 3:27 PM
Summary
The project pertains to the evacuation of renewable energy with a capacity of 1,500 MW from Solapur and the setting up of a transmission line of 44 km from the existing substation of PGCIL to the Solapur substation.
Torrent Power's share price gained nearly 4% on Wednesday, February 28, after receiving a new transmission project worth ₹50 crore in Maharashtra's Solapur. The company will build the project on a build-own-operate transfer (BOOT) basis and operate it for 35 years. The project will be commissioned in 24 months, the company said in a filing to the stock exchanges.
Torrent Power has received a letter of intent (LOI) from PFC Consulting Ltd for the establishment of the inter-state transmission scheme, Transmission System for Evacuation of Power from RE Projects in Solapur (1,500 MW) SEZ in Maharashtra, under Tariff Based Competitive Bidding (TBCB) process, the company informed the stock exchanges.
After the announcement, shares of Torrent Power gained 3.96% to hit an intraday high of ₹1,197 crore on NSE. However, the power sector stock pared early gains, and the shares were trading (-3.6%) lower at ₹1109 apiece at 3:06 pm.
The project pertains to the evacuation of renewable energy with a capacity of 1,500 MW from Solapur and the setting up of a 44 km transmission line from the existing PGCIL substation to the Solapur substation.
PFC Consulting Ltd will transfer the project SPV to Torrent Power in due course of time. The project marks Torrent Power's entry into the development of power transmission under the tariff-based competitive bidding (TBCB) framework.
Torrent Power Ltd reported a decline in its net profit in the December quarter of the current financial year. On a consolidated basis, the company's net profit dropped more than 46% to ₹374.13 crore in Q3FY24 compared to ₹694.9 crore in the year-ago period.
The company's revenue from operations declined to ₹6,366.09 crore in Q3FY24 from ₹6,442.79 crore in the corresponding period of the previous financial year.
A part of the Torrent Group, Torrent Power is among India's largest power sector players with a presence across the entire power value chain – generation, transmission, and distribution. It has an aggregate generation capacity of 4,287 MW, including 2,730 MW of gas-based energy, 362 MW of coal-based energy, and 1,195 MW of renewable energy. In addition, another 977 MW generation capacity of renewable energy generation is under development.