Torrent Power declines after weak Q1 results

Torrent Power fell 1.4% to Rs 169.05 at 10:03 IST on BSE after consolidated net profit declined 79.56% to Rs 45.62 crore on 13.28% decline in net sales to Rs 2534.10 crore in Q1 June 2016 over Q1 June 2015.

The result was announced after market hours yesterday, 2 August 2016.

Meanwhile, the S&P BSE Sensex was down 201.29 points, or 0.72%, to 27,780.42.

On BSE, so far 3.12 lakh shares were traded in the counter, compared with an average daily volume of 1.53 lakh shares in the past one quarter. The stock hit a high of Rs 171 and a low of Rs 159 so far during the day. The stock hit a 52-week high of Rs 252.50 on 11 March 2016. The stock hit a 52-week low of Rs 139.65 on 25 August 2015. The stock had underperformed the market over the past one month till 2 August 2016, falling 2.53% compared with 3.08% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 26.59% as against the Sensex's 10% rise.

The mid-cap company has an equity capital of Rs 480.62 crore. Face value per share is Rs 10.

The company's EBDIT (earnings before depreciation, interest and tax) including other income fell 33.45% to Rs 562.78 crore in Q1 June 2016 over Q1 June 2015.

The company said that as per the consistent policy followed by the company, it accounts for the truing-up adjustment claims as and when billed to the consumers. Gujarat Electricity Regulatory Commission (GERC) vide its Tariff Order dated 31 March 2016 has allowed recovery of Regulatory Charge of 45 paise per kilowatt hour (kWh) to address the gap of earlier years for the company's distribution license areas at Ahmedabad and Surat. Against the said GERC Tariff Order, review petitions were filed and GERC vide its order dated 22 April 2016, had restrained the company from recovering the Regulatory Charge of 45 paise/kWh. Subsequently, GERC has issued a common order dated 1 July 2016 revising the Regulatory Charge to 18 paise/kWh and 17 paise/kWh for Ahmedabad and Surat license areas, respectively, with effect from 1 July, 2016. The company has appealed before APTEL against the said GERC order for which hearings are scheduled. In this context, the company has not billed to the consumers and consequently not accounted any Regulatory Charge for the quarter ended on 30 June 2016.

Torrent Power is a private sector player in Gujarat with an experience in generation, transmission and distribution of power, and a proven track record of implementing large power projects.

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