Torrent Power reported a 12.9% rise in net profit to ₹838 crore for the September quarter. Stronger revenue and the Nabha acquisition helped the company grow. While higher finance costs narrowed margins, the firm saw better performance across its distribution and renewable energy businesses. Shares rose 2.72% on Wednesday.
Torrent Power reported a 12.9% year-on-year rise in net profit to ₹838 crore for the September quarter, supported by stronger revenue and operating performance across its distribution and renewable energy businesses, along with the consolidation of its Nabha acquisition.
Revenue for the quarter rose 24.5% to ₹9,802 crore from ₹7,876 crore a year earlier. EBITDA increased 15.5% to ₹1,739 crore, compared with ₹1,506 crore in the corresponding quarter last year.
However, EBITDA margin narrowed to 18% from 19% a year ago, with higher finance costs partly offsetting the improvement in operating performance.
Shares of Torrent Power closed at ₹1,236.25 on the BSE on Wednesday, up 2.72%, or ₹32.75, ahead of the earnings announcement.
Distribution, renewables and Nabha acquisition support growth
The company reported an incremental contribution of ₹105 crore during the quarter, primarily driven by improved operational performance across its distribution businesses and a stronger showing from its renewable energy portfolio.
Higher plant load factors and contributions from projects commissioned during the period supported the renewable energy business. The consolidation of the Nabha acquisition also added to the quarter's contribution.
However, higher borrowings led to an increase in finance costs, partly offsetting these gains.
Torrent Power is an integrated power utility with operations across generation, transmission and distribution. It is part of the Torrent Group, which has interests across the pharmaceutical and power sectors.
The company has an aggregate installed generation capacity of 6.8 GW, comprising 2.7 GW of gas-based capacity, 2.3 GW of renewable capacity and 1.8 GW of coal-based capacity.
It is also developing around 4.3 GW of renewable energy projects, 3 GW of pumped storage capacity and 1.6 GW of coal-based power capacity. Including projects under development, its total generation capacity is expected to reach around 12.7 GW, alongside 3 GW of pumped storage capacity.
On the distribution side, Torrent Power supplies nearly 31 billion units of electricity to around 4.29 million customers across Gujarat, Maharashtra and Uttar Pradesh, as well as the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
Its distribution operations cover Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra; and Agra in Uttar Pradesh.