Tata Power jumps 4%, hits new high as solar arm wins multiple orders

Shares of Tata Power hit a new high at Rs 198.70, up nearly 4 per cent in Tuesday’s intra-day trade in an otherwise range-bound market after Tata Power Solar received EPC orders worth Rs 538 crore from Energy Efficiency Services Limited (EESL) to set-up multiple distributed ground mounted solar projects totalling 100 MW.

Tata Power Solar Systems (Tata Power Solar), one of India’s largest integrated solar company and a wholly-owned subsidiary of Tata Power, has received “Letter of Award” (LoA) to build 100 MW of distributed ground mounted Solar projects for EESL, the company said in a press release. The total order value of the projects is Rs 538 crore. The commissioning date of the projects is set for 12 months, it added.

The EESL project sites are located in Maharashtra. The work secured includes engineering, design, supply, construction, erection, testing, O&M and commissioning of the solar projects.

With this win, the Utility Scale EPC order book of Tata Power Solar now stands at around 4 GW (DC) capacity with an approximate value of Rs 9,264 crore (without GST), thereby strengthening its position as India’s leading Solar EPC player, the company said.

Tata Power Solar has also won an auction conducted by Gujarat for 400 MW of projects to be built at Dholera solar park.

In the April-June quarter (Q1FY22), Tata Power had reported a 74 per cent year-on-year jump in its consolidated profit after tax (PAT) before exceptional items at Rs 268 crore, driven by a consistent performance by all businesses, reduction in finance cost and higher execution of EPC projects.

The company’s board is scheduled to meet on October 28, 2021 to consider financial results for the quarter ended September 2021 (Q2FY22).

Divestment-related measures and infusion from the promoter have aided a debt reduction. Furthermore, the EPC and Renewables businesses are set to gain momentum, led by a healthy project pipeline. Analysts expect Solar EPC to give a leg up in earnings for the next two years.

Tata Power also partnered with Tata Motors, Morris Garages India Limited and Jaguar Land Rover for developing electric vehicle (EV) charging infrastructure for their customers and dealers, including those for e-buses used by multiple state transport utilities.

In past one month, the stock of Tata Power has zoomed 52 per cent, as compared to 3.3 per cent rise in the S&P BSE Sensex.