Tata Power hit a four month high of Rs 86.70, up 7% on BSE in intra-day trade, on the back of heavy volumes. The stock touched its highest level since April 25, 2017 on BSE.
At 11:38 AM; it was up 6% at Rs 85.80, as compared to 0.21% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-fold with a combined 24.68 million shares changed hands on BSE and NSE so far.
Tata Power on Tuesday after market hours said that the rating agency CARE Ratings has reaffirmed its ratings assigned to the company’s long-term debt instruments at ‘CARE AA; Stable’
While, CRISIL in August 31, had upgraded its rating on the long-term bank facility and non-convertible debentures (NCDs) of Tata Power Solar Systems Limited (TPSSL) to ‘CRISIL A+/Stable’ from ‘CRISIL A/Stable’ and reaffirmed its rating on the short-term bank facility at ‘CRISIL A1’.
The upgrade reflects CRISIL’s expectation that TPSSL will maintain its steady growth in revenue and profitability, supported by focus on engineering, procurement and construction (EPC) business and the strategic importance of TPSSL to its parent Tata Power’s growth strategy.
“TPSSL’s revenue witnessed growth of 51% in fiscal 2017 and continued to have strong performance for the three months through June 2017, driven by the increased focus on EPC business and increased order inflow from Tata Power Renewable Energy (TPRL). As a result, operating profitability also improved to 6.9% in fiscal 2017, from 4.9% in fiscal 2016. Furthermore, TPSSL’s healthy unexecuted orders of Rs 3,000 crore as on July 31, 2017, provides strong revenue visibility over the next 12-18 months,” CRISIL said in statement.