Torrent Power Q4 PAT at Rs 398 cr versus Rs 274 cr loss a year ago

However, due to Covid-19 and power sector stress, consolidated income rose marginally by three per cent

Torrent Power Limited has posted a consolidated profit after tax (PAT) of Rs 398.10 crore for the quarter ended March 31, 2021, based on its filing with stock exchanges. The company had incurred a net loss of Rs 273.94 crore in Q4 of previous fiscal 2019-20.

However, due to the Covid-19 pandemic and stress in the power sector, the company's consolidated income rose marginally by three per cent to Rs 3,116.54 crore for the quarter, from Rs 3,020.84 crore in Q4 of last year.

On an annual basis, Torrent Power registered a near 10 per cent growth in its consolidated PAT for the full fiscal 2020-21 at Rs 1,295.87 crore, as against Rs 1,178.88 crore in previous fiscal 2019-20. The impact of the pandemic was visible in the nearly 11 per cent dip in its consolidated total income for FY21 at Rs 12,314.47 crore, down from Rs 13,818.22 crore in FY20.

Torrent Power's total comprehensive income (TCI), however, rose by 13 per cent to Rs 1,299.98 crore for FY21. The company attributed factors like higher recovery of carrying cost pertaining to earlier years compared to previous year due to favourable orders from the Appellate Tribunal for Electricity, higher gain from trading of LNG partially compensated by lower contribution from merchant power sales, and decrease in interest cost, both due to lower debt and reduction in interest rates, among others.

Commenting on the results, Torrent Power Ltd chairman Samir Mehta said that despite the impact of Covid-19 pandemic and significant stress in the power sector, the company continued to deliver industry leading returns in the private sector on account of its strategy to pursue risk-adjusted profitable opportunities, strong execution capabilities and focus on operational excellence. "With our strong balance sheet, the Company will continue to pursue profitable growth opportunities across the entire value chain of the Power sector."

During FY21, Torrent Power had emerged as the highest bidder for the acquisition of 51 per cent stake in the power distribution company in the UT of Dadra & Nagar Haveli and Daman & Diu. This acquisition will significantly boost Torrent’s position as the leading power distribution company in the country with a presence in 12 cities across three States and one Union Territory.

The takeover of the operations, however, is currently sub-judice.

   

Further, the company emerged as the winner for 700 Mw of solar capacity, of which LOAs have already been received for 400 Mw.

Meanwhile, Torrent Power had a net debt reduction of Rs 1,093 crore during the year, with borrowings at Rs 7,808 crore as on March 31, a debt equity ratio of 0.73 and net debt to EBITDA ratio of 1.98.