Torrent Power reports Rs 274 cr loss in Q4

Torrent Power reported consolidated net loss of Rs 273.94 crore in Q4 March 2020 compared with net profit of Rs 24.80 crore in Q4 March 2019.

The company has provided impairment loss of Rs 1,000 crore as exceptional item during the quarter towards carrying cost of DGEN plant (Dahej, Gujarat). Pre-tax loss stood at Rs 693.60 crore in Q4 March 2020 as against a profit before tax of Rs 220.41 crore in Q4 March 2019. Current tax expense jumped 72.80% to Rs 73.61 crore in Q4 March 2020 over Q4 March 2019.

Net sales rose 2% to Rs 2,983.50 crore in Q4 March 2020 over Q4 March 2019. EBITDA grew 15% to Rs 864 crore in Q4 March 2020 as compared to Rs 750 crore in Q4 March 2019. The result was announced after trading hours yesterday, 18 May 2020.

The company increased its generation capacity from 3,703 MW to 3,879 MW during the year, with the entire addition in capacity coming from Renewable energy.

Speaking on the Q4 earnings, Samir Mehta, the chairman of Torrent Power, has said that, "Despite the significant stress in the power sector, torrent power continued to deliver industry leading returns in the private sector on account of the company's strategy to pursue risk-adjusted profitable opportunities, strong execution capabilities and focus on operational excellence. We welcome the Government's recent announcements for the power sector; in particular the decision to privatise distribution circles in Union Territories. With our strong balance sheet, the company will continue to pursue profitable growth opportunities across the entire value chain of the power sector.

The firm said it will issue non-convertible debentures (NCDs) upto Rs 2,000 crore in one or more tranches by way of private placement basis, subject to approval of shareholders in the 16th Annual General Meeting (AGM) of the company.

Torrent Power is an integrated utility engaged in the business of power generation, transmission and distribution with operations in the states of Gujarat, Maharashtra and Uttar Pradesh. It is also engaged in the business of cables manufacturing with operations in the state of Gujarat.

Shares of Torrent Power rallied 5.44% to Rs 313.15. It hit a high of Rs 318.25 and a low of Rs 291.50 so far.

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