Torrent Power soars 7% on healthy operational performance in March quarter

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

Shares of Torrent Power rose 7 per cent to Rs 318 on the BSE on Tuesday after the company reported a healthy 15 per cent year-on-year (YoY) growth in EBITDA (earnings before interest, taxes, depreciation and amortization) at Rs 864 crore in the March quarter (Q4FY20). The higher growth was attributed to lower transmission & distribution (T&D) loss and the benefit of UnoSugen’s power procurement arrangement (PPA).

The company’s operational revenues remained flat Rs 2,984 crore in Q4FY20 against Rs 2,925 crore in the corresponding quarter of previous fiscal. The profit before tax or PBT (post exceptions) came in at a loss of Rs 693 crore on account of one-offs worth Rs 1,000 crore pertaining to impairment for its 1,200MW DGEN power project. At the profit after tax level, the company reported loss of Rs 270 crore.

The management 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.

The Company further cemented its leadership position in the power distribution business during FY20 with the takeover of distribution operations of Shil-Mumbra-Kalwa area in Maharashtra under a distribution franchise agreement for 20 years wef March 01, 2020. The Company also 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.