Under Rs 50: Reliance Group Company Wins 930 MW Solar and Battery Storage Project from SECI – Reported Rs 2878 Crore Profit Against Rs 238 Crore Loss
The shares of the company have delivered a return of around 100 per cent to its shareholders.
Reliance Power Ltd’s subsidiary, Reliance NU Suntech Private Limited, has secured a Letter of Award (LoA) from Solar Energy Corporation of India (SECI) for a 930 MW solar power project with a 465 MW/1,860 MWh Battery Energy Storage System (BESS). This marks the largest deployment of grid storage batteries at a single site in Asia, excluding China.
The award, won through an e-reverse auction on December 9, 2024, highlights India’s progress in integrating solar power with BESS. The project will ensure a reliable peak power supply of four hours daily, reducing DISCOMs' reliance on costly power exchange rates during peak demand.
Under a 25-year Power Purchase Agreement (PPA) with SECI, Reliance NU Suntech will develop the project on a build-own-operate basis. The generated solar power will be distributed to multiple DISCOMs across the country.
At the start of the trading session, Reliance Power Ltd opened at Rs 46.71 per share, compared to the previous day's closing of Rs 47.23 per share on the BSE. Currently, shares are at Rs 47.34 per share on the BSE. The current market capitalization of Reliance Power Ltd stands at Rs 18,963 crore, and the stock has generated an impressive return of around 100 per cent in the past year.
Financial Performance
According to the Quarterly Results, in the second quarter of FY25, the company reported a revenue of Rs 1760 crore. The operating profit reached Rs 376 crore, resulting in an operating profit margin of 21 per cent. The net profit for the period amounted to Rs 2878 crore.
Reviewing the annual performance it reported a revenue of Rs 7893 crore in FY24, compared to Rs 7514 crore in FY23. The operating profit for FY24 reached Rs 1160 crore while the company reported a loss of Rs 2068 crore.
Investors must keep this Small-Cap company on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.