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Business News/ Markets / Stock Markets/  KPI Green Energy shares rise 7% after company signs 500 MW solar park deal with Uttarakhand government
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KPI Green Energy shares rise 7% after company signs 500 MW solar park deal with Uttarakhand government

The shares have been on a winning run over the last few months, driven by the company's significant order wins. In the current month so far, they are up by nearly 6%, and over the last six months, the shares have delivered an impressive return of 73.97%.

It reported a consolidated net profit of ₹34.75 crore in Q2 as against ₹21.16 crore in Q2 FY23. (Pixabay)Premium
It reported a consolidated net profit of 34.75 crore in Q2 as against 21.16 crore in Q2 FY23. (Pixabay)

KPI Green Energy, one of the leading players in the renewable energy sector, saw its share price rise 7% to reach 885 apiece in Friday's early trade deals on multiple positive developments. The company said on Thursday that it has signed a Memorandum of Understanding with the Government of Uttarakhand along with Advait Infratech Limited for the development of a 500 MW solar park under the Captive Power Producer (‘CPP’) segment.

The company also informed that Sun Drops Energia Private Limited, a wholly owned subsidiary of KPI Green Energy, received a new order for executing the Wind-Solar Hybrid Power Project for 2.10 MW capacity, comprising of 2.10 MW wind and 1 MW solar capacity, from CTX Life Sciences.

KPI Green Energy is a solar power generation company focused on providing solar power, both as an independent power producer ('IPP') under the brand name of 'Solarism' and as a service provider to captive power producer ('CPP') customers.

Also Read: Govt to act against solar power developers flouting local sourcing norms

Amidst India's ambitious goal of achieving 280 GW of solar power by 2030, the renewable energy sector is in a favourable position. KPI Green Energy aims to commission a substantial 1000 MW of solar power for its clients by 2025.

The shares have been on a winning run over the last few months, driven by the company's significant order wins. In the current month so far, they are up by nearly 6%, and over the last six months, the shares have delivered an impressive return of 73.97%. In the last one-year period, they gained 137%.

For Q2 FY24, the company's consolidated total revenue from operations surged to 215.07 crore, an improvement of 35% YoY. It reported a consolidated net profit of 34.75 crore in the quarter as against 21.16 crore in Q2 FY23, which shows an increase of 66%.

As a result of growth in net profit, the company's EPS improved to 9.62 in Q2 FY24 from 5.86 in the same period last year.

The consolidated net profit for the current half year stood at 68.01 crore (H1-FY23-24) as against that of 43.39 crore as in H1-FY22-23, reflecting an increase of 57%.

Also Read: ONGC, NTPC Green tie up for domestic and international renewable energy projects

During H1FY24, the company bagged the single largest order of hybrid CPP of 145.20 MW and also won a 240 MW DC bid from GUVNL under the IPP segment. With these, the total order book on hand at the gross level stands at 541+ MW, bringing the company closer to its ambitious target of 1000 MW by 2025, according to company's earnings report. 

Its consolidated CPP sales in H1FY24 improved by 35% to 330.87 crore from 245.54 crore in H1FY23, while those under the Independent Power Producer (IPP) grew by 99% to 72.38 crore from 36.47 crore in H1FY23.

At 12:00 PM, the stock was trading with a gain of 4.85% at 866.90 apiece. 

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

 

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Published: 03 Nov 2023, 12:45 PM IST
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