Shares of companies in the energy space are poised to buzz when markets open for trading on Monday after the first-ever auction for wind energy saw tariff plunge to a record low of Rs 3.46 per unit. One of the four successful bidders was Inox Wind, listed on the bourses. Stocks that could witness heightened activity include Suzlon Energy, NTPC, Power Grid Corporation and PFC.
On Thursday (February 23), Inox Wind shares ended at Rs 178 apiece, NTPC at Rs 165, PFC at Rs 135, PGC at Rs 199 and Suzlon Energy at Rs 18 (face value of Rs 2 each). Stock markets were closed on Friday on account of Maha Shivratri.
Suzlon Energy is one of the other companies in the wind energy space while NTPC has interests in thermal and solar power. Power Grid Corporation (PGC) is a transmission company, while Power Finance Corporation (PFC) is into funding power projects.
On Friday, bidding for 1 giga watt (GW) wind energy generation saw four firms bagging contracts to produce 250 mega watt (MW) each at Rs 3.46 per kilo watt hour (kWh). The other three successful bidders were Mytrah Energy, Green Infra and Ostro Kutch Wind.
Firms that were in the race but could not win included ReNew Power Ventures, Gamesa Renewables Pvt. Ltd., Hero Future Energies Ltd and RP-Sanjiv Goenka Group's CESC Ltd.
The auction was conducted by state-run Solar Energy Corporation of India (SECI).
Inox Wind has three state-of-the-art manufacturing plants in Gujarat, Himachal Pradesh and Madhya Pradesh with a cumulative manufacturing capacity of 1,600 MW and manufactures components for wind turbine generators.
The plant near Ahmedabad (Gujarat) manufactures blades & tubular towers while hubs & nacelles are manufactured at the company's facility at Una (Himachal Pradesh). The new integrated manufacturing facility at Barwani (Madhya Pradesh) manufactures blades & towers, and will manufacture nacelles & hubs in the future, according to a company update.
The company posted net profit of Rs 107 crore on total sales of Rs 1,160 crore for the third quarter ended December 31, 2016.
NTPC is India's largest power producing company, both in terms of installed capacity and output. The state-run company that generates and sells power in bulk supplies reached 48,143 MW in power generating capacity with the commissioning of the 115 MW Bhadia Solar Power project in West Bengal recently. The public sector company's power generating capacity is almost a fourth of the country's total.
For the quarter ended December 31, 2016, its net profit and revenues stood at Rs 2,468 crore and Rs 19,395 crore, respectively.
Private sector company Suzlon Energy has an installed capacity of 15.5 GW globally. In India, it has about 100 wind farms in nine states with a capacity of 10 GW.
In Q3, the company earned net profit of Rs 304 crore on total turnover of Rs 3,307 crore. It sold 462 MW power during the quarter and 1,019 MW for the nine months ended December 2016.
The order book as of December 31, 2016 stood at 1,231MW valued at Rs. 7,523 crore, including new orders for 557 MW in the third quarter. Suzlon Energy's net debt excluding FCCBs was Rs 6,538 crore.