Tata Power shares rise 2% after solar arm bags order from NTPC

Shares of Tata Power rose nearly 2% on Monday, snapping two sessions losing streak, after its solar arm secured an order worth ₹418 crore from NTPC, the country’s largest power generation company. The Tata group stock fell 1.5% in the past two session as investors booked profit at higher levels after the counter touched fresh 52-week high on December 14, 2023.

Early today, Tata Power shares opened higher at ₹339.20, up 1.8% against the previous closing price of ₹333.20 on the BSE. The stock gained as much as 2.1% to hit an intraday high of ₹340.2, while the market capitalisation rose to ₹1.08 lakh crore. The largecap stock has risen 87% in nine months, from its 52-week low of 182.45 touched on March 28, 2023, to fresh record high of ₹341.30 on December 14, 2023.

The market cap the integrated power company crossed ₹1 lakh crore mark on December 7, becoming the sixth Tata Group company to achieve this market value after Tata Consultancy Services (TCS), Titan Company, Tata Motors, Tata Steel, and Trent.

In a post-market release on December 15, Tata Power said that its subsidiary, Tata Power Solar Systems signed a contract with state-owned NTPC to supply solar PV (photovoltaic) modules for its Nokh Solar Park in Rajasthan. The order value of the project is around ₹418 crore.

“Tata Power Solar Systems Limited (TPSSL), a wholly owned subsidiary of Tata Power Renewable Energy Limited (TPREL), one of the leading renewable energy players in India, is pleased to announce that it has signed a contract to supply 152 MWp DCR Solar PV Modules for NTPC Limited (NTPC’s) Nokh Solar PV Project in Rajasthan,” the company said in the filing.

“This contract highlights TPSSL’s commitment to promoting the growth of renewable energy, thereby furthering the nation's sustainable energy objectives,” it added.

NTPC is developing three 245 MW (total 735 MW) Nokh Solar Park at Pokaran, Jaisalmer, Rajasthan. The entire project will utilise DCR (Domestic Content Requirement) category Bi-Facial Mono-PERC modules. The solar panels, including the solar cells and modules, of these DCR Solar PV modules, are being manufactured in India in adherence to the domestic content requirement policy.

TPSSL’s solar cell and module manufacturing plant in Bengaluru will supply 152 MWp DCR Solar PV modules for this project. TPSSL’s solar EPC portfolio is more than 12.5 GWp of ground-mount utility-scale, over 2 GW of rooftop and distributed ground-mounted systems, and over one lakh solar water pumps.

As of September 30, 2023, Tata Power’s clean energy portfolio achieved the milestone of 5,500 MW, standing at 38% of total installed generation capacity. It also made significant progress in its distribution business by improving its cash flow and reducing AT&C losses in Odisha. Further, it is well-poised to capitalise on the pumped hydro storage projects and has signed a pact with the Maharashtra government for the development of 2,800 MW projects, with a proposed total investment of around ₹13,000 crore.

Early this month, in an analyst meeting at its Bhivpuri Hydro capacity in Maharashtra, the company gave an aggressive target to double its revenue and profit by FY27 at a capital expenditure of ₹60,000 crore in the next four years. Out of which, 45% will be spent on renewables during FY24-27.

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