Sarda Energy & Minerals hit the roof on approval of provisional tariff for 113 MW project

Sarda Energy & Minerals was locked in an upper-circuit of 5% at Rs 708.40 after the Chhattisgarh State Electricity Regulatory Commission approved provisional tariff for its subsidiary, a 113 MW Hydropower project of Madhya Bharat Power Corporation.

The Chhattisgarh State Electricity Regulatory Commission on Wednesday, 22 September 2021, approved provisional tariff for a 113 MW Hydropower project of Madhya Bharat Power Corporation, a subsidiary of the company, considering 85% of the cost of the project incurred as per audited accounts of the company as of 31 March 2021 with return on equity of 15.5% p.a. as per relevant regulations under the Electricity Act.

"The final tariff will be determined based on the cost incurred up to the date of COD, as may be approved by the Commission, following the due process of law in due course," the press release stated.

Meanwhile, CRISIL revised the ratings on total bank facilities worth Rs 580 crore. Long Term Ratings has been given a "CRISIL BBB+/Positive" rating as compared to its previous "CRISIL BBB/Stable" rating. Short Term Rating was given a "CRISIL A2" rating as against its previous "CRISIL A3+."

Sarda Energy & Minerals' consolidated net profit soared 335.1% to Rs 169.86 crore on a 138.9% jump in net sales to Rs 823.33 crore in Q1 FY22 over Q1 FY21.

Sarda Energy & Minerals is a vertically integrated producer of steel with captive iron ore. The company is manufacturer and exporter of niche grade manganese based ferro alloys.

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