The company has also seen an increase of 13 per cent in the annual TCI at Rs 1300 crore in FY 2020-21 in comparison to that of the previous year.
After the announcement of the financial results for the quarter and year ended March 31, 2021 today, the company said the major reasons for improvement in the TCI for the year are higher recovery of carrying cost pertaining to earlier years compared to previous year due to favourable orders from the Appellate Tribunal for Electricity; higher gain from trading of LNG partially compensated by lower contribution from merchant power sales, Decrease in interest cost, both due to lower debt and reduction in interest rates.
The company said that the TCI in previous year was lower due to non-recurring and non-cash items like provision for impairment loss and provision towards potential damages in wind power projects.
Performance of franchised distribution businesses was impacted due to COVID 19 pandemic causing reduction in electricity demand mainly in commercial and industrial customer categories; and increase in T & D loss.
Post lockdown and subsequent disruption, economic revival has resulted in an increase in demand for electricity in all of Torrent’s distribution areas and demand in Q4 of FY 21 exceeded demand in comparable quarter of last year.
Commenting on the results, the Company’s Chairman, Samir Mehta said, “Despite the impact of COVID 19 pandemic and 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. With our strong balance sheet, the Company will continue to pursue profitable growth opportunities across the entire value chain of the Power sector.”
Notably, Torrent Power, the Rs 12,173 Crs integrated power utility of the Rs 20,000 Crs 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.
It has an aggregate installed generation capacity of 3,879 MW comprising of 2,730 MW of gas-based capacity, 787 MW of renewable capacity and 362 MW of coal-based capacity. Solar projects of 700 MW are under development, of which LOAs have been received for projects of 400 MW.
The Company distributes nearly 14.5 billion units to over 3.71 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh.
UNI RAJ GNK 2118
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