A day after Torrent Power announced that it had secured a significant contract from Maharashtra State Electricity Distribution Company Ltd (MSEDCL), shares of the company shot up more than 9 per cent to Rs 1,985 on BSE (Bombay Stock Exchange).
The energy player's upcoming InSTS Connected Pumped Hydro Storage Plant has been awarded a letter of intent for the long-term supply of 2,000 MW of energy storage capacity.
Prior contract win from MSEDCL for 1500MW
This action comes after MSEDCL's prior 1,500 MW letter of intent, which was published on September 17, 2024. An additional 500 MW has now been allotted under the same tender, bringing Torrent Power's total storage capacity allocation to 2,000 MW.
MSEDCL will purchase storage capacity from the plant under the terms of the Energy Storage Facility Agreement (ESFA), a 40-year contract that allows for a maximum continuous supply of 5 hours and a scheduled discharge of 8 hours daily. The plant, which will be situated in Maharashtra, will charge using input energy that MSEDCL provides.
Total power generation capacity
With a blend of gas-based, renewable, and coal-based energy, Torrent Power's installed generation capacity was 4.4 GWp as of June 30, 2024. The company is also developing 3.1 GWp of renewable projects.
Company financials
Its net profit in Q1 increased 87.2 per cent year over year to Rs 996.3 crore, and its operating revenue climbed 23.3 per cent year over year to Rs 9,033.7 crore in Q1 FY25.
In the first quarter of the fiscal year, Torrent Power's operating earnings, or earnings before interest, tax, depreciation, and amortisation (EBITDA), increased by almost 57 per cent to Rs 1,857.9 crore. In comparison to 16.2 per cent during the same period in the previous fiscal year, its EBITDA margin increased to 20.6 per cent.
