Green energy stock jumps 3% after receiving order worth ₹ 520 Cr from Dalmia Bharat – EQ
In Short : A green energy company’s stock increased by 3% after securing a ₹520 crore order from Dalmia Bharat, a prominent Indian cement manufacturer. The contract likely involves supplying renewable energy solutions to support Dalmia Bharat’s sustainability initiatives. This partnership underscores India’s move towards cleaner energy, driven by corporate commitments to reduce carbon footprints and government incentives for renewable energy adoption.
In Detail : The shares of this smallcap company jumped around 3 percent in Monday’s trading session after receiving an order from Dalmia Bharat worth Rs. 520 crores. In one year, the stock has delivered more than a 500 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 4,241 crores, the shares of Oriana Power Ltd started Monday’s trading session on a higher note at Rs. 2,255 compared to its previous close of Rs. 2,164.25.
During the trading session, the shares hit a high of Rs. 2,272.25, gaining around 3 percent and are currently trading at Rs. 2,233 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that one of its subsidiaries, Truere Surya Private Limited, had been awarded a prestigious contract by Dalmia Cement (Bharat) Limited, a wholly-owned subsidiary of the Dalmia Bharat limited.
This contract is for the development of a solar power plant with a capacity of 128 MW worth Rs. 520 crores under the Open Access Segment and supports Dalmia group’s commitment towards RE 100 by 2030 and carbon negative by 2040.
Additionally, Dalmia Cement (Bharat) Limited, a wholly-owned subsidiary of Dalmia Bharat limited, has entered into a Share Subscription and Shareholders agreement to acquire 26 percent of the equity share capital of Truere Surya Private Limited aggregating to Rs. 44.80 crores, in one or more tranches to source solar power as a captive consumer for a capacity upto 128 MW located in the State of Tamil Nadu.
Financials:
Looking at the company’s financial statements, the revenue zoomed by 398 percent from Rs. 64.05 crores during H1FY24 to Rs. 318.81 crores in H2FY24. In addition, the net profits magnified by 750 percent from Rs. 5.72 crores to Rs. 48.62 crores during the same period.
Recent Development:
The company was been awarded a prestigious order of 52 MW worth Rs. 247.88 crores from Bharat Petroleum Corporation Ltd for executing a solar power project.
This order involves the development of a solar power project under the EPC segment, which includes obtaining CTU approval, constructing transmission lines, and providing operations and maintenance services for 5 years.
Furthermore, Oriana Power had signed an MoU with Splitwaters a US-based company for supplying electrolyzers and all necessary equipment for green hydrogen projects to develop green hydrogen and E-fuel facilities across India.
Under this strategic alliance, Oriana Power will lead the business development and project execution in the Indian market and provide the electrolyzer and all other equipment required for green hydrogen projects, along with EPC (engineering, procurement, and construction) services to clients in India.
Moreover, Oriana Power will also work with Splitwaters’ green hydrogen and e-fuel projects outside India by leveraging its capabilities and market reach to propel the industry forward.
Order Book:
The business pipeline currently exceeds more than 600 MWp solar (consisting of EPC and RESCO IPP) and more than 30 Ton CBG projects that are poised for execution. And are actively pursuing overseas opportunities in the Middle East region.
Management Guidance:
The management anticipates a significant increase in FY25 topline performance, driven by robust demand in the renewable energy sector and a well-maintained order book.
Oriana Power is in the advanced stage of a financing agreement with a major financial institution in India. This collaboration aims to promote residential and SME rooftop solar projects, offering expedited fund disbursement which is expected to enhance customer conversion rates significantly.
Furthermore, the company is setting ambitious goals, with a target to achieve 1 GW capacity by 2026 and OrianaPower is looking to tap into additional revenue streams by integrating agricultural practices with photovoltaic systems.
Company Profile:
Headquartered in New Delhi, Oriana Power Ltd was incorporated in the year 2013. The company is a leading solar energy solution provider in India, specializing in constructing and operating solar projects for industrial and commercial customers.
