Tata Power shares up after company's subsidiary signs PPA agreement with Tata Motors

Tata Power share price: Shares of Tata Power gained as much as 1.35 per cent to Rs 242.60 apiece on the BSE in the early trade on Tuesday (August 22), a day after the company announced that its subsidiary Tata Power Renewable Energy Limited (TPREL), signed a power purchase agreement (PPA) for a 9-megawatt peak (MWp) on-campus solar plant with Tata Motors' Pantnagar plant in Uttarakhand. This solar plant will be the largest on-campus solar facility in the state, the press release added. 

At the time of filing this report, the stock was trading 0.48 per cent higher at Rs 240.50 on the BSE. 

The solar installation includes an effective approach towards Tata Motors' sustainable future goals, with an estimated carbon emission reduction of 25 tonnes of CO2/kWp in Uttarakhand. The project will be commissioned within 6 months from the PPA execution date. The solar installation will utilise both rooftop and ground-mounted units for installation, the release said further.

Commenting on the deal, Ashish Khanna, CEO, of Tata Power Renewable Energy Limited, said, "Tata Power Renewables, with this partnership with Tata Motors, is supporting India's green energy future. The 9 MWp solar power installation resonates with our commitment to fostering the widespread adoption of eco-friendly clean energy solutions across industries".

Tata Power Q1 Results 

Tata Power posted an over 29 per cent rise in consolidated net profit at Rs 1,140.97 crore in the June quarter on the back of higher revenues. The company reported a net profit of Rs 883.54 crore in the year-ago quarter, according to a BSE filing.

Total income rose to Rs 15,484.71 crore in the quarter under review from Rs 14,638.78 crore a year ago.

"We have delivered a 15th consecutive quarter of PAT (Profit After Tax) growth on the back of strong performance across all business clusters. "This is the result of our effective strategies, operational efficiencies, and execution excellence driven by our committed workforce," Praveer Sinha, CEO & MD of Tata Power, said in a statement. CLICK HERE TO READ FULL REPORT