VRL Logistics, Ratna Cements signs MoU to transfer Wind Power

VRL Logistics added 5.55% to Rs 545 after the company signed a Memorandum of Understanding (MoU) with Ratna Cements to transfer the wind power sale on a slump sale basis.

Under the MoU, VRL will transfer the Sale of Power undertaking, with all underlying assets and liabilities as a going concern on a slump sale basis for Rs 48 crore.

Ratna Cements placed a token advance of Rs 2 crore before signing the MoU and has a time of up to 31 July 2022 to complete the transaction with all required approvals, with the remittance of the balance sales consideration.

The Wind Power Undertaking of the company initially had 34 wind turbine generators with a capacity of 42.5 MW. The project comprises 32 wind turbine generators with a 40 MW capacity. These turbines have been installed at Kappatgudda, Karnataka.

The windmill division recorded a revenue of Rs 17.57 crore with 0.99% standalone revenue of the company, with earnings before interest and taxes (EBIT) of Rs 80.83 lakhs.

VRL Logistics is India's largest and leading transportation and logistics company. Its net profit rose 52.2% to Rs 60.49 crore, with a 20.4 % increase in net sales to Rs 678.39 crore in the third quarter (Q3) of FY22 over Q3 FY21.

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