Torrent Power Q1 profit up 35% at ₹374 cr
2 min read . Updated: 06 Aug 2020, 07:01 PM ISTTorrent Power posted over 35% jump in consolidated net profit at ₹373.87 crore for June quarter 2020-21
Torrent Power on Thursday posted over 35% jump in consolidated net profit at ₹373.87 crore for June quarter 2020-21.
In the year-ago period, the net profit was ₹276.59 crore, Torrent Power said in a BSE filing.
Total income was ₹3,041.72 crore in the quarter as compared to ₹3,790.61 crore in the same period a year ago.
The company said decrease in interest cost, mainly due to repayment of loans and reduction in interest rates, was one of the growth drivers during the quarter.
It stated that the company got a favourable order from the Appellate Tribunal for Electricity in respect of disputed carrying cost recovery pertaining to earlier years.
There was an increase in contribution from gas-based power plants including due to operationalisation of long term PPA (power purchase agreement) for 278 MWs capacity from second quarter of 2019-20.
"COVID-19 pandemic has drastically impacted electricity demand & customer payments, posing unprecedented operational and cashflow challenges, in both generation and distribution of electricity across the power sector. For Torrent, the financial impact has been more pronounced in our Franchised Distribution business in Agra and Bhiwandi," Torrent Power Chairman Samir Mehta said in a statement.
The company's strong balance sheet, robust business model and talented pool of employees allowed it to tide over the unprecedented and difficult situation without any operational disruption and with manageable financial impact, he added.
"With the easing of lockdown restrictions, we are already witnessing a gradual and steady recovery in demand & cashflows in our geographical areas and are looking forward to new growth opportunities arising from Government’s strong desire to reform the power sector," Mehta said.
Earlier in the day, shareholders of the company also approved a proposal to raise up to ₹2,000 crore through issuance of Non-Convertible Debentures on a private placement basis in one or more tranches.
The company has an aggregate installed generation capacity of 3,879 MW comprising 2,730 MW of gas-based capacity, 787 MW of renewable capacity and 362 MW of coal-based capacity.
The company distributes nearly 16.66 billion units of power to over 3.65 million customers in Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh.
This story has been published from a wire agency feed without modifications to the text.
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