Torrent Power Q2 Results: Net profit falls 8.6% YoY to ₹496 crore; revenue up 3%
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Torrent Power Ltd. shares closed 1.09% higher at ₹1,640 after Wednesday’s trading session, compared to the previous close of ₹1,658.10. The company announced its second-quarter results following the close of trading on Wednesday.
In the second quarter, Torrent Power’s revenue from core operations rose by 3.08% year-on-year to ₹7,175.81 crore, up from ₹6,960.92 crore.
The company’s expenses for the second quarter increased by 4.47% to ₹6,611.83 crore, up from ₹6,328.44 crore in the same quarter of the previous financial year. This rise in expenses was partly due to higher costs associated with the purchase of electrical energy, contributing to the overall increase in costs for the July to September period.
Torrent Power’s revenue from power generation activities fell by 6.6% in the second quarter, reaching ₹1,833.55 crore compared to ₹1,963.73 crore in the same period last year. While the primary Transmission and Distribution segment performed well, the Renewable Energy segment saw a year-on-year decline.
Reasons for Lower Profit:
The company attributed the decrease in profit to a lower contribution from thermal generation. This was largely due to a reduction in merchant power sales (including LNG) and a drop in electricity demand, influenced by an extended and heavy monsoon in the current quarter compared to the same period last year.
The company also pointed to a lower contribution from its renewable business due to a reduced Plant Load Factor (PLF), impacted by colder weather and the partial commissioning of solar projects still in their stabilization period.
Additionally, higher finance and depreciation costs from capital expenditures and the commissioning of additional renewable generation capacity contributed to the lower profit, as noted in the company’s statement.
About Torrent Power
Torrent Power is a leading power generation, transmission, and distribution company with a national presence in India. The company has a market valuation of ₹27,183 crore, as per its official statement.
Torrent Power’s total installed generation capacity stands at 4,580 megawatts peak (MWp), which includes 2,730 megawatts (MW) of gas-based capacity, 1,488 MWp of renewable energy capacity, and 362 MW of coal-based capacity. Additionally, the company has 2,979 MWp of renewable energy projects currently in development.
Torrent Power serves customers across several regions, including the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ, and Dholera SIR in Gujarat; the Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD); Bhiwandi, Shil, Mumbra, and Kalwa in Maharashtra; and Agra in Uttar Pradesh.
