Tata Group Stock Climbs 56 per cent, Trades Near 200DMA; Completes Rs 18 Crore Deal
Stock up 56% in a year as expenses drop and transmission business expands with a Rs 18 crore acquisition.
Tata Power Company Limited has acquired a 100 per cent equity stake in ERES-XXXIX Power Transmission Limited, a special purpose vehicle (SPV). The acquisition process was finalized on November 14, 2024, following a Share Purchase Agreement (SPA).
ERES-XXXIX Power Transmission Limited Overview
ERES-XXXIX was formed on March 27, 2024, to implement a transmission system on a Build-Own-Operate-Transfer (BOOT) basis. The project is located in Gopalpur, Odisha, and includes a 765 KV double circuit line spanning 190 km from Angul to Gopalpur, a GIS substation, and other extensions.
Acquisition Cost and Timeline
Tata Power completed the acquisition with a cash consideration of Rs 18.56 crore. The SPV's scheduled commercial operation date is December 31, 2027.
Key Project Components
The transmission system includes a GIS substation in Gopalpur, AIS bay extensions in Angul, and a 12 km double circuit line connecting OPTCL's Gopalpur GIS substation. The system aims to enhance Odisha's power infrastructure.
Tata Power’s Q2 Performance
Profit Growth Amid Lower Costs
For the July-September 2024 quarter, Tata Power reported a 7.4 per cent rise in net profit, reaching Rs 1,093.08 crore compared to Rs 1,017.41 crore in the same quarter last year. The improvement is attributed to a 4.55 per cent reduction in total expenses, which fell to Rs 14,082.46 crore.
Decline in Fuel Costs
Fuel expenses dropped significantly by 19.64 per cent to Rs 2,871.69 crore, compared to Rs 3,573.62 crore in the corresponding quarter last year.
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Revenue Insights
Revenue from operations declined slightly by 0.25 per cent to Rs 15,697.67 crore. Power generation revenue through hydroelectric and thermal sources dropped by 13.35 per cent, totaling Rs 4,309.24 crore.
Transmission and Distribution Gains
The Transmission and Distribution segment showed a 7.97 per cent revenue growth, generating Rs 10,207.10 crore, up from Rs 9,453.43 crore in the same period last year.