KP Energy Share Price Surges 5% on 9-MW Wind Power Project Contract

Energy company K.P. Energy shares soared on Tuesday, and are locked in 5% upper circuit at ₹409.85 apiece early trade on April 23. The surge came after K.P. Energy secured an order for development of a 9MW wind power project in Gujarat.

In an exchange filing, the Gujarat-based company said, “We are pleased to inform you that K.P. Energy Limited has received a new order for development of a 9MW wind power project forming part of the wind-solar hybrid power project to be developed in Gujarat. This project is part of the State Transmission Utility (STU) network and falls in under the Captive Power Project section.”

This project is awarded by Bhathwari Technologies Private Limited under captive power project segment and shall be connected to state transmission utility (STU) network. It includes both supply and service for development of the project on turnkey basis. The project is scheduled to be completed in the financial year 2024-25 and involves both supplies and services for turnkey project development.

On the earnings front, there was an increase of almost 61% in the consolidated net profit for the quarter that ended in March (Q4FY24) compared to ₹15.48 crore in Q4FY23. The consolidated net profit for the year ended March 31, 2024, was valued at ₹58.32 crores, and represented an increase of about 33% over the equivalent year ended March 31, 2023. As to the exchange filing, the company saw its highest-ever bottom line in FY 2023–2024.

The company stated in its exchange filing that it generated ₹200.80 crores in revenue from the EPC sector in Q4FY24, an increase of almost 40% from the consolidated revenue of ₹143.47 crores in Q4FY23. The company's revenue from the EPC segment for FY24 was ₹450.69 crores.

K.P. Energy Limited, part of KP Group, was formed in 1994 and provides complete solutions from concept till completion of project life-cycle of Wind Projects. Activities covered are Siting of Wind-farms Lands & Permits acquisition, EPCC (Engineering Procurement Construction & Commissioning) of Wind Project Infrastructure, including power transmission and Operations & Maintenance of entire Balance of Plant of a Utility Scale Wind-farm.

It aims to bring scalability in wind sector by serving OEMs (Original Equipment Manufacturers) of Wind Turbines IPPs (Independent Power Producers) to Captive Users as well as Institutional Investment Programmes. In addition to the Wind Power Project Development business the company proposes to become an Independent Power Producer in Wind Energy.

K.P. Energy's core business activities include the construction of wind farms, the creation of wind power projects and related services, the production of electricity using wind power producing assets, and the operation and maintenance services of wind power projects, mostly in India.