Share price of Tata Power Company Ltd gained as much as 1.78% in morning trades on the BSE on Tuesday following news flow around its subsidiary Tata Power Renewable Energy Ltd crossing 1.4 GW mark in renewable capacity.
Tata Power Renewable Energy Limited (TPREL), a subsidiary of The Tata Power Company Limited, one of the large renewable energy companies in India, has crossed the 1.4 GW capacity of group captive projects in the last seven months, Tata Power said in its release. It also stated that this achievement is the result of signing Power Delivery Agreements (PDA) with various industries across segments.
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Benefiting from strong demand for power in the country, Tata Power’s performance remained strong and renewable portfolio further raised its performance. Tata Power Company Limited Q2FY2024 reported net profit grew by 9% yoy to Rs. 1,017 crore which according to analysts at Sharekhan was led by good performance of the renewable energy (RE) portfolio and decent revenues from Odisha discoms offsetting the decline in coal profits.
Revenue from its Renewables business rose 33% YoY to ₹2146 crore overtaking growth in revenue from Generation and Transmission which were increased by 3% and 5% respectively.
Tata Power had a robust order book and Group captive picked up momentum. The utility-scale order book stood at 3.7 GW value ₹ 15,870 crore with the rooftop solar and group captive order book at ₹ 2,872 crores.
TPREL received 139 MW orders for group captive in Q2FY24 taking the total capacity to 1,445 MW including Tata Steel order of 966 MW hybrid project comprising 379 MW of solar & 587 MW of wind
Analysts at Sharekhan said that Tata Power’s focus on business restructuring and high growth Renewable business and entry into power transmission would play a crucial role for continued earnings growth (management targets for a 4-fold increase in its net profit by FY2027 estimated over FY2022) and improved. winning quality. In addition, management’s business restructuring plans to increase the share of high-growth RE business would drive a sustained improvement in ESG scores.
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Analysts like Rupesh Sankhe at elara Securities India Pvt Ltd said Tata Power aims to: expand Renewable Energy capacity to 15.0GW by FY25 from the current 3.9GW, focus on power distribution, and seize opportunity in solar EPC. We present FY26 estimates and maintain our positive stance on Tata Power
Disclaimer: The opinions and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions
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Updated: 21 Nov 2023, 12:57 IST