Torrent Power stock up 6% on company bagging order worth ₹1,825 crore
Upstox
2 min read • Updated: April 1, 2024, 2:59 PM
Summary
Torrent Power has bagged a ₹1,825-crore order for a solar-wind hybrid power project. The announcement led to a sharp spike in its share prices at the bourses, with the scrip trading higher by 6% as compared to the previous day’s close.
The shares of Torrent Power surged in the first trading session of fiscal year 2024-25 on April 1, in the backdrop of the company bagging a solar-wind hybrid power project order worth ₹1,825 crore.
The stock edged in the green during the early trading hours, and at 12 noon, it was valued at ₹1,440.05 apiece on the National Stock Exchange (NSE), up 6.03 % as against the last closing price.
On the BSE, Torrent Power was trading at ₹1,445 apiece, higher by 6.07% as against the previous session’s close.
The announcement related to the ₹1,825-crore order was made by Torrent Power on March 28, following the conclusion of trading hours. The stock market was subsequently closed on March 29 on account of Good Friday, and on March 30-31 due to the weekend.
“…the company has received Letter of Award (LOA) from Torrent Power Limited-Distribution Unit for setting up of 150 MW (RE Power) Grid-Connected Wind Solar Hybrid Projects under Greenshoe option,” Torrent Power had stated in its release.
The project will be commissioned within 24 months from the inking of the power purchase agreement (PPA), it said, adding that the contract period will be of 25 years from the date of commissioning of the project.
While the company confirmed that the LOA has been issued, it did not share further details related to the awarding party, and the location where the project will come up.
“The annual Capacity Utilisation Factor (CUF) shall not be less than 50% for any of the year during the term of the PPA and rated power capacity of wind and solar shall be in ratio of 2:1,” Torrent Power said.
To meet the 50% CUF requirement, the company plans to install 245 MW of wind and solar capacity against a contracted capacity of 150 MW, it further added.
In the quarter ended December 2023, Torrent Power had reported a net profit of ₹374 crore, down 46% as compared to the year-ago period. The revenue from operations came in at ₹6,366 crore, marginally lower as compared to ₹6,443 crore in the corresponding quarter of the previous fiscal year.
Year-to-date, the company’s shares have soared by a massive 52.80%, whereas, the growth has been 176.59% over the past one year.