Torrent Power drops after poor Q3 results

The company announced Q3 results after market hours on Monday, 28 January 2013.

Meanwhile, the BSE Sensex was down 12.16 points o 0.06% at 20,091.19.

On BSE, 2,467 shares were traded in the counter as against average daily volume of 1.19 lakh shares in the past one quarter.

The stock hit a high of Rs 171.80 and a low of Rs 168 so far during the day. The stock had hit a 52-week low of Rs 146 on 31 August 2012. The stock had hit a 52-week high of Rs 252.70 on 15 February 2012.

The stock had underperformed the market over the past one month till 28 January 2013, sliding 8.27% compared with the Sensex's 3.39% rise. The scrip had, however, outperformed the market in past one quarter, surging 9.66% as against Sensex's 7.94% surge.

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

Torrent Power's consolidated EBDIT (including other income) declined 23.92% at Rs 373.85 crore in Q3 December 2012 over Q3 December 2011.

Torrent Power attributed the declined in net profit to fall in domestic gas supply, particularly from KG basin which resulted in a sharp decline in the plant load factor (PLF) at the company's SUGEN Mega Power Plant from 70.41% in Q3 December 2011 to 35.95% in Q3 December 2012. Further, the reduced supply of power from SUGEN Mega power Plant to the company's regulated distribution areas at Ahmedabad and Surat necessitated purchase of short term power at higher price, resulting into an additional impact to the tune of about Rs 100 crore, the company said. Additionally, the finance costs increased by Rs 40 crore on year on year basis, Torrent Power said in a statement.

Torrent Power is one of the largest private players in the country having integrated operations in the power sector. It generates 1,697 megawatts (MW) power and distributes nearly 15 billion units to over 2.67 million customers in cities of Ahmedabad, Gandhinagar and Surat in Gujarat, Bhiwandi in Maharashtra and Agra in Uttar Pradesh. It is in the process of setting up new power projects at Surat, Dahej and Pipavav in Gujarat and Sandila in Uttar Pradesh with a total capacity of approximately 5,500 MW. Torrent Power, in its licensee areas in Gujarat has the distinction of having one of the lowest T&D losses in the country, high power availability index and also enjoys high levels of customer satisfaction. It was the first private sector power utility to be appointed as the distribution franchisee by a public sector utility when it was awarded the distribution franchise for Bhiwandi. It has also been awarded the distribution franchise for Agra and Kanpur in Uttar Pradesh in Northern India.

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