Shares of Tata Power, a subsidiary of Tata Group, saw surge in buying on Thursday, a day after the company bagged ₹1,774 crore smart metering project in Chattisgarh. The share price of Tata Power surged as much as 3.87% to hit an intraday high of ₹230.25 apiece on the BSE.

The scrip opened gap-up at ₹225, higher by 1.5% against the closing price of the previous session at ₹225. During the session, the company’s market capitalisation rose to ₹73,349 crore as more than 14.28 lakh shares were exchanged on the BSE as against the two-week average of 5.37 lakh shares. The scrip closed at ₹229.55, up 3.56%. At present, the share price of Tata Power is trading 9.6% lower than the 52-week high that the company touched on September 7 this year. The share price of the power major is trading 25.8% higher than the 52-week low of ₹182.45, which it touched on March 28 this year. In the past one year, 3-month and one month, the counter has risen 1.21%, 13.93%, and 4.18%, respectively.

According to the company, Tata Power has received a letter of award (LOA) to implement the smart metering project in Chattisgarh State Power Distribution Company Limited (CSPDCL). The LOA has been issued in conclusion to the tender floated by CSPDCL for three packages for different areas under the Chhattisgarh Discom. Tata Power participated in Package 2 and emerged as a winner. The project will be spanned over a period of 10 years. The project will be carried out in the Raipur area (Raipur city and Raipur rural areas) of Chhattisgarh. Tata Power will install and maintain 18.60 lakh meters in the given area.

The project shall include design, supply, installation, and commissioning followed by operation and maintenance of smart meters at the consumer end and at the distribution transformers level. The project will be executed under revamped distribution sector scheme (RDSS) and is expected to improve the AT&C losses (aggregate technical and commercial losses) in the designated area and increase revenue collection for CSPDCL. CSPDCL is a state-owned electricity distribution company responsible for providing electricity to consumers across the state of Chhattisgarh.

"We are pleased to announce that we have won a significant order worth ₹1,744 crore to implement a Smart metering project in Chhattisgarh State Power Distribution Company Limited. It is a testament to our execution expertise in delivering high value and specialized projects which are aimed at transforming the power distribution domain," said Praveer Sinha, CEO & MD, Tata Power.

In FY23, the consolidated revenue of Tata Power surged as much as 32% at ₹56,033 crore as against ₹42,756 crore in the same period last year. The company’s EBITDA (earnings before interest, tax, depreciation and amortization) surged 23% at ₹10,068 crore in FY23 as against ₹8,192 crore in the same period last year. The company’s profit after tax stood at ₹10,068 crore, witnessing a growth of 23% YoY as against ₹3,810 crore in FY22.

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