Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power Ltd, has signed a power purchase agreement (PPA) for a 9MWp on-campus solar plant with Tata Motors Ltd’s Pantnagar plant in Uttarakhand. Here are the key details:
Solar Plant Details:
- This solar plant will be the largest on-campus solar facility in Uttarakhand.
- The solar installation will utilize both rooftop and ground-mounted units for installation.
- It’s part of Tata Motors’ sustainable future goals, with an estimated carbon emission reduction of 25 tons of CO2/kWp in Uttarakhand.
- The project is expected to be commissioned within 6 months from the PPA execution date.
Previous Partnership:
- TPREL and Tata Motors had previously established a 7 MWp solar project at the Pantnagar manufacturing facility.
- With this new project, Tata Motors Pantnagar plant’s combined solar capacity now stands at 16 MWp.
- The solar plants will generate annually 224 lakh units, meeting nearly 60% of their annualized requirement.
Stock Performance:
- On Tuesday, shares of Tata Power Ltd surged 0.33% to Rs 240.15 per share.
- The stock has given multibagger returns of 300% in just 3 years, outperforming the BSE Sensex Index, which is up by 70%.
Financial Highlights:
- In terms of consolidated quarterly results, Tata Power reported a 2% increase in net sales to Rs 15,003 crore (attributed to higher sales across Distribution Companies and capacity addition in renewables).
- EBITDA increased by 43% to Rs 3,005 crore, and net profit increased by 29% to Rs 1,141 crore in Q1FY24 compared to Q1FY23.
Order Book and Capacity:
- As of June 30, 2023, the company’s order book stands at Rs 17,643 crore, and the total capacity stands at 4,199 MW.
- The Rooftop Solar and Group Captive Order Book is at Rs 2,504 crore.
Investors are advised to keep an eye on this Large-Cap power stock, which is making significant strides in the renewable energy sector and has a strong order book, contributing to its growth.
