Torrent Power reports Q2 FY 2021-22 results

Torrent Power Limited (the "Company") today announced financial results for the quarter ended September 30, 2021.

Revenue from Operations

₹ 3,648 crs in Q2 FY 2021-22 compared to ₹ 3,129 crs in Q2 FY 2020-21, up by 17%
₹ 6,747 crs in H1 FY 2021-22 compared to ₹ 6,136 crs in H1 FY 2020-21, up by 10%

EBITDA

₹ 974 crs in Q2 FY 2021-22 compared to ₹ 748 crs in Q2 FY 2020-21, up by 30%
₹ 1,739 crs in H1 FY 2021-22 compared to ₹ 1,753 crs in H1 FY 2020-21, down by 1%

Total Comprehensive Income

₹ 367 crs in Q2 FY 2021-22 compared to ₹ 204 crs in Q2 FY 2020-21, up by 80%
₹ 576 crs in H1 FY 2021-22 compared to ₹ 572 crs in H1 FY 2020-21, up by 1%

The major reasons for improvement in the TCI for the quarter on y-o-y basis are:

- Significant Reduction in T&D losses in the Company's Distribution Franchisee Business,

- Significant increase in electricity demand mainly in commercial and industrial customers during current quarter in the Company's Distribution Franchisee Business

- Significant reduction in provision for doubtful debts in Distribution Franchisee business, which was severely impacted the comparative quarter of last year due to Covid 19 pandemic;

- Increase in contribution from renewables generation, which was impacted in comparative quarter of last year due to abnormally lower wind speed;

- Decrease in interest cost, both due to lower debt and reduction in interest rates;

- Increase in tax expenses;

The Company enjoys a strong balance sheet position with some of the best financial ratios amongst private players in the power sector with Debt : Equity ratio of 0.69 as at September 30, 2021 and Net Debt to EBITDA ratio of 1.98 as on March 31, 2021.

During the quarter, the Company has entered into a Share Purchase Agreement with CESC Limited, Haldia Energy Limited and other Nominal Shareholders for the acquisition of 100% of the share capital of Surya Vidyut Limited, which operates a 156 MW wind power plants, situated in the state of Gujarat, Rajasthan and Madhya Pradesh. Enterprise value estimated for this acquisition is approx ₹ 790 Crore subject to closing price adjustments. Long-term Power Purchase Agreements (PPAs) for the Projects are with respective State Discoms for a period of 25 years. The acquisition is subject to customary conditions for transaction closure.

Shares of Torrent Power Limited was last trading in BSE at Rs. 500.05 as compared to the previous close of Rs. 499.25. The total number of shares traded during the day was 64270 in over 1993 trades.

The stock hit an intraday high of Rs. 513.50 and intraday low of 495.35. The net turnover during the day was Rs. 32185627.00.

Source : Equity Bulls

Keywords

TorrentPower INE813H01021 Q2FY22 H1FY22 ResultUpdate