Torrent Power Q3 Net Profit Down 46% To Rs 374 Crore

Torrent Power Ltd. on Thursday reported a 46% dip in its consolidated net profit to Rs 374 crore in the December quarter compared to the year-ago period mainly due to lower revenues.

The company reported a net profit of Rs 695 crore in the third quarter of FY23, a company statement said.

Revenue from operations stood at Rs 6,366 crore in the December quarter of FY24 compared to Rs 6,443 crore in Q3 of FY23.

Earning before interest, depreciation and tax (EBIDTA) for Q3 of FY24 was lower due to a reduction in net gain from trading of LNG and merchant power sales by Rs 478 crore compared to the corresponding quarter of last year.

“Adjusted for the above gain in the third quarter of FY23, adjusted earnings before interest, depreciation and tax (EBIDTA) and PAT for Q3 FY 2023-24 were higher by Rs 49 crore and Rs 31 crore respectively as compared to Q3 FY23,” it stated.

The major reasons for higher adjusted PAT for the quarter on y-o-y basis include an increase in contribution from licensed distribution businesses and an increase in contribution from renewable businesses due to capacity addition and higher wind PLF (plant load factor or capacity utilisation).

The other reasons are a decrease in tax expenses and higher depreciation expense.

The board in its meeting on Thursday approved interim dividend for FY 24 of Rs 12 per Equity Share on 48,06,16,784 equity shares of Rs 10 each.

The dividend will be remitted on or before March 7, 2024 to eligible shareholders. The Record Date is Friday, Feb. 16, 2024, for the purpose.

The board also acceded to the desire of Sudhir Mehta to step down as the Director of the Company while continuing as Chairman Emeritus (without Board position) effective from April 1, 2024.

Torrent Power, the Rs 25,694 crore integrated power utility of the Rs 37,600 crore Torrent Group, is one of the largest companies in the country’s power sector with presence across the entire power value chain – generation, transmission and distribution.