Torrent Power drops after dismal Q4 show

Torrent Power lost 2.31% to Rs 131.10 at 14:03 IST on BSE after consolidated net profit declined 94.3% to Rs 22.24 crore on 1.8% growth in net sales to Rs 1874.56 crore in Q4 March 2013 over Q4 March 2012.

The Q4 result was announced after market hours on Wednesday, 29 May 2013.

Meanwhile, the S&P BSE Sensex was down 14.98 points or 0.07% at 20,132.66.

On BSE, 25,000 shares were traded in the counter as against average daily volume of 64,136 shares in the past one quarter.

The stock hit a high of Rs 134 and a low of Rs 130.25 so far during the day. The stock had hit a 52-week low of Rs 129 on 24 May 2013. The stock had hit a 52-week high of Rs 201.95 on 31 May 2012.

The stock had underperformed the market over the past one month till 29 May 2013, sliding 5.53% compared with the Sensex's 3.92% rise. The scrip had also underperformed the market in past one quarter, declining 18.35% as against Sensex's 6.82% gain.

The mid-cap company has equity capital of Rs 472.45 crore. Face value per share is Rs 10.

Torrent Power's consolidated net profit declined 69.1% to Rs 386.70 crore on 3.36% growth in income from operations to Rs 8221.01 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

Torrent Power attributed the decline in profit before tax in FY 2013 to the continuous decline and eventual stoppage in domestic gas supply from KG-D6 basin which has impacted the plant load factor (PLF) at the company's SUGEN Mega Power Plant to 41.21% in FY 2013, from 75.99% in FY 2012. The company also said that reduced power supply from SUGEN Mega Power Plant to the Company's regulated distribution areas at Ahmedabad and Surat necessitated purchase of short term power, resulting into an additional impact to the tune of approximately Rs 600 crore in FY 2013. The company's other operating income was lower to the extent of Rs 219 crore in FY 2013 on account of fall in income from CERs.

Torrent Power is one of the largest private players in the country having integrated operations in the power sector. It has a current generation capacity of 2,091 megawatts (MW).

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