Tata Power Shares Surge as It Secures Rs 1,744 Crore Order
Tata Power Ltd, a prominent member of the Tata Group, Tata Power shares surge over 3% today, The surge followed the announcement of the company securing a smart metering project valued at Rs 1,744 crore in the state of Chhattisgarh. The contract was awarded to Tata Power by Chhattisgarh State Power Distribution Company Limited (CSPDCL). On the Bombay Stock Exchange (BSE), Tata Power’s stock experienced a rise of 3.15%, reaching Rs 228.65. The stock opened higher at Rs 225, in contrast to the previous closing price of Rs 221.65 on the BSE.
Over the course of a year, Tata Power’s stock has witnessed a gain of 6.33%, with a rise of 7.44% in 2023. A total of 8.30 lakh shares of the company were traded, amounting to a turnover of Rs 18.82 crore on the BSE. The market capitalization of Tata Power surged to Rs 72,709 crore.
In terms of technical analysis, the relative strength index (RSI) of the stock stands at 57.9, indicating that the stock is currently neither oversold nor overbought. With a one-year beta of 1, Tata Power demonstrates average volatility during the given period. Furthermore, Tata Power shares are trading above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
Tata Power stated, “Tata Power has been awarded a contract worth Rs 1,744 crore to implement a smart metering project in Chhattisgarh. This letter of award (LOA) has been issued following the tender floated by CSPDCL for three different packages covering various areas under the Chhattisgarh distribution company.”
The project will be executed over a span of 10 years in the Raipur area, encompassing both the city and rural areas of Chhattisgarh. Tata Power will be responsible for installing and maintaining 18.60 lakh meters in the designated area, as mentioned in the company’s statement.
The project includes the design, supply, installation, commissioning, as well as operation and maintenance of smart meters at the consumer level and distribution transformer level. It will be executed under the Revamped Distribution Sector Scheme (RDSS) and is expected to reduce AT&C losses in the designated area while increasing revenue collection for CSPDCL.
Tata Power reported a remarkable 48% increase in its fourth-quarter profit for the financial year 2022-23 (FY23). The net profit rose to Rs 939 crore in the last quarter, compared to Rs 632 crore during the same period the previous year. The company highlighted that this marked the 14th consecutive quarter of profit after tax (PAT) growth and attributed the strong performance to all its business segments.
During Q4 FY23, revenue also witnessed a 6% climb, amounting to Rs 12,755 crore compared to Rs 12,085 crore in Q4 FY22. The increase was driven by higher sales across distribution companies and capacity additions in the renewables sector.
About Tata Power:
Tata Power Limited, headquartered in Mumbai, Maharashtra, India, is an Indian electric utility firm that operates as part of the Tata Group. The company’s primary focus is on the generation, transmission, and distribution of electricity.
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