Torrent Power surges 13% After Signing MoU With Gujarat Govt Worth Rs 47,350 Cr

Torrent Power shares jumped over 13 per cent on Thursday’s trading session after the company inked four Memorandums of Understanding (MoUs) with the Gujarat government valued at Rs 47,350 crores.

In the past two months, the stock has outperformed the market by surging 38 per cent. Its previous record high of Rs 1,045.35 was touched on December 7, 2023.

The four MoUs were signed between Torrent Power and Gujarat Energy Development Agency (GEDA) in Gandhinagar under the 10th edition of Vibrant Gujarat Global Summit.

The MoUs entail setting 3,450 MW of solar power projects, 1,045 MW of hybrid power projects, associated infrastructure for 7,000 MW solar project, green hydrogen/green ammonia output facility and capex for distribution network.

The management said Torrent Power intends to make a significant portion of its future investments across key national priorities of renewable generation, pump storage hydro projects, green hydrogen / green ammonia production and power distribution.

Torrent Power is one of the largest companies in the country’s power sector with presence across the entire power value chain – generation, transmission and distribution.

For the first half of fiscal 2024, Torrent Power’s earnings before interest, taxes, depreciation, and amortization (Ebitda) improved to around Rs 2,406 crore from Rs 2,224 crore for the same period last year.

This was on account of strong performance in the franchisee distribution business segment led by lowering of losses, increase in power demand across all distribution areas, contribution from acquired renewable assets and contribution from its 1,200 MW combined cycle gas power plant in Dahej, Gujarat.

In terms of operating performance, plant load factor (PLF) of the company’s lone thermal asset continued to operate at high levels in the first-half of fiscal 2024 as demand for power in the country continued to grow.

Operating performance is likely to continue to improve in the current fiscal with steady recovery in the franchise distribution business, as per CRISL Ratings.

Torrent Power share price opened at Rs 998.95 apiece on BSE. Torrent Power stock price touched an intraday high of Rs 1071.60 and an intraday low of Rs 985.25.