Tata Power gains 2% on receiving Letter of Intent from REC for Jalpura Khurja project

In Q3FY24, Tata Power reported a consolidated net profit of Rs 1,076.12 crore against Rs 1,052.14 crore in the previous fiscal.

Shares of Tata Power gained nearly 2 percent at open on the NSE after the power transmission and distribution company stated that it has received a Letter of Intent (LoI) from REC Power Development to acquire the Jalpura Khurja Power Transmission project. At 9:20 am, the stock was trading at Rs 382.55.

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In a regulatory filing post market hours on February 16, Tata Power announced receiving an LoI from REC Power Development to acquire Jalpura Khurja Power Transmission for Rs 838 crore.

According to the filing by Tata Power, the Jalpura Khurja Power Transmission project would be developed on a build-own-operate transfer basis, to provide transmission service for 35 years from the scheduled date of commercial operation (SCOD), around 18 months from the date of SPV acquisition.

Also read: Tata Power Q3 net profit remains muted at Rs 1,076.12 crore

In Q3FY24, Tata Power reported a consolidated net profit of Rs 1,076.12 crore against Rs 1,052.14 crore in the previous fiscal. The company said the net profit was on account of better realisation in the core business segments consisting of generation, transmission, distribution and renewables. Consolidated revenue for the same period grew 6.2 percent to Rs 15,294.13 crore while earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 20 percent to Rs 3,060.55 crore from Rs 2,607.61 crore.