Torrent Power posts Q4 loss of Rs 487 cr versus Rs 459 cr profit a year ago

Integrated power utility arm of Torrent Group, Torrent Power Limited posted a net loss of Rs 487 crore for the fourth quarter ended March 31, 2022. The company had registered a net profit of Rs 459 crore in the fourth quarter ended March 31, 2021 period in the previous financial year.

Torrent Power's revenue from operations grew by 21 per cent to Rs 3,744 crore for Q4 of FY22 as against Rs 3,084 crore in Q4 of FY21.

For the full financial year 2021-22, Torrent Power saw its net profit fall by 65 per cent to Rs 459 crore, down from Rs 1,296 crore in FY21. The company's revenue from operations, however, increased by 17 per cent to Rs 14257 crore in FY'22, as against Rs 12173 crore in FY'21.

The company also informed that its earnings before interest, depreciation, tax and amortization (EBIDTA) for FY22 was higher at Rs 3,826 crore compared to Rs 3,607 crore for FY21. However, total comprehensive income (TCI) for FY22 was lower due to DGEN impairment charge of Rs 928 crore (net of deferred tax reversal) during the year. Adjusted for net DGEN impairment charge of Rs 928 crore, adjusted TCI for FY22 was higher at Rs 1,389 crore compared to Rs 1,300 crore for FY21.

Torrent Power also informed that it was able to significantly reduce transmission and distribution (T&D) losses in the company's licensed & franchisee distribution business, apart from gaining from trading of LNG and reduction in finance costs due to lower debt and reduction in interest rates.

Commenting on the results, Torrent Power chairman Samir Mehta said that during the year, the company continued to focus its growth initiatives in the identified growth engines of Distribution and Renewables.

"In line with this strategy, the company took over the operations as distribution licensee of Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD) with effect from April 1, 2022 post acquisition of 51 per cent equity share capital of the company. Further, during the year the company was able to expand its operational renewable portfolio by 231 MW due to acquisition of renewable projects and an additional 565 MW projects are under development / acquisition," Mehta added.

During the year the company was able to reduce T&D losses in Ahmedabad and Surat to 4.17 per cent and 3.38 per cent, respectively, making it the lowest T&D loss in the country and at par with global benchmarks.