Ahmedabad-based power generation and distribution company, Torrent Power Ltd has posted a marginal six per cent growth in its profit before tax (PBT) for the second quarter ended September 30, 2019 to close at Rs 532.87 crore.
As against this, the company had witnessed a PBT of Rs 501.87 crore in the corresponding quarter last year on a consolidated basis.
The company's revenue from operations, however, grew by 11.52 per cent in Q2 of FY 2019-20 at Rs 3842 crore, up from Rs 3445 crore in Q2 FY 2018-19 on a consolidated basis.
According to the company, the growth has come on the back of multiple factors including contribution from new long term power purchase agreement (PPA) for 278 Mw operationalised during the quarter and higher merchant power sales during the quarter.
Other factors like favourable judgement from the Appellate Tribunal for Electricity in respect of disputed carrying cost recovery pertaining to an earlier year; improved performance of franchised distribution businesses; and one off provision towards potential damages and other project related costs arising from expected delays in setting up a wind power project too contributed, among other things.
Meanwhile, the Board has approved a Scheme of Arrangement for transfer of Torrent Power Ltd's cable business to its wholly owned subsidiary TCL Cables Pvt. Ltd. on a going concern basis by way of slump sale with effect from April 1, 2020. The scheme is subject to approval of regulatory authorities and National Company Law Tribunal (NCLT).
Part of the Rs 21000 crore Torrent Group, Torrent Power Limited has an aggregate installed generation capacity of 3,703 Mw including 2,730 MW gas-based capacity, 611 Mw of renewable capacity and 362 Mw of coal-based capacity. TPL has an additional 791 MW of renewable projects under construction; on completion of the said projects, the aggregate renewable capacity would be 1,402 MW and the aggregate generation capacity would be over 4,494 MW.
Under its distribution business, Torrent Power distributes nearly 16.68 billion units to over 3.32 million customers in Ahmedabad, Gandhinagar, Surat and Dahej SEZ in Gujarat, Bhiwandi in Maharashtra and Agra in Uttar Pradesh.