Tata Power signs pact with Tata Communications to set up solar plant; stock up 1%

Tata Power Company Ltd's subsidiary, Tata Power Renewable Energy Ltd, on Wednesday announced that it has signed a power delivery agreement with Tata Communications Ltd for an 18.75 MW AC group captive solar power plant.

"The project, facilitated through a special purpose vehicle (SPV) — Nivade Windfarm Ltd — has acquired an estimated order value of Rs 105 crore. Located in Aachegaon, Maharashtra, the plant is projected to generate approximately 40 MUs of power while offsetting more than 30,000 tonnes of CO2 emissions annually," it stated in an exchange filing.

"While the decision to 'go green' demonstrates feasibility and immense benefits of sustainable energy practices, it also reflects the broader efforts within the sector to reduce environmental impact and champion a more sustainable and responsible business ecosystem," it added.

Deepesh Nanda, CEO and Managing Director, Tata Power Renewable Energy, said, "Our customised green energy solutions such as Group Captive Solar will not only reduce operating costs but also increase energy efficiency, thus paving the way for a sustainable and future-ready sector."

Tata Power's stock was last seen trading 0.99 per cent higher at Rs 368.60.

The company recorded a 2.28 per cent rise in its third-quarter (Q3 FY24) consolidated net profit on a year-on-year (YoY) basis. The company's profit in December 2023 came at Rs 1,076.12 crore as against Rs 1,052.14 crore in the year-ago period.

Revenue from operations was up 3.69 per cent in Q3 FY24, at Rs 14,651 crore, compared to Rs 14,129.12 crore in the corresponding quarter last fiscal.

Tata Power expenses also rose proportionately to Rs 14,254.11 crore in October-December 2023 quarter from Rs 13,745.89 crore in Q3 FY23.

During the quarter under review, EBITDA for the quarter grew by 15 per cent YoY to Rs 3,250 crore.

Domestic brokerage Nuvama Institutional Equities has cut its rating on Tata Power to 'Reduce' from 'Hold' with a revised target price of Rs 303.

Also read | Hot stocks on February 14: IFCI, Genus Power, Paytm, SJVN and more

Also read | Multibagger Mazagon Dock shares have turned negative in 2024; can they recover?