Torrent Power Q2 FY25 Results: Profit Dips 8.6% YoY to ₹496 Crore; Revenue Climbs 3%

On November 13, 2024, Torrent Power Limited announced its financial results for the quarter ending September 30, 2024.

Revenue grew by 3% in Q2 FY 2024-25 to ₹7,176 crore, compared to ₹6,961 crore in Q2 FY 2023-24. For H1 FY 2024-25, revenue rose by 13% to ₹16,210 crore, compared to ₹14,289 crore in H1 FY 2023-24. EBITDA remained steady at ₹1,332 crore in Q2 FY 2024-25, slightly higher than the ₹1,330 crore recorded in Q2 FY 2023-24. For H1 FY 2024-25, EBITDA increased by 26%, reaching ₹3,266 crore compared to ₹2,600 crore in H1 FY 2023-24.

Torrent Power reported a decline of 7% in total comprehensive income, at ₹492 crore in Q2 FY 2024-25, down from ₹531 crore in the same quarter last year. However, for H1 FY 2024-25, the figure surged by 39%, reaching ₹1,484 crore compared to ₹1,065 crore in H1 FY 2023-24.

Torrent Power reported a year-on-year decline in Profit After Tax (PAT) to ₹47 crore for Q2 FY 2024-25. This decrease is due to several factors, including:

• Increased Revenue from Licensed Distribution: Revenue from licensed distribution areas increased, partly compensating for the impact of other challenges.
• Reduced Contribution from Thermal Generation: A drop in revenue from thermal generation was primarily due to a reduction in merchant power sales, including LNG, owing to lower demand. This decrease in electricity demand was attributed to extended and intense monsoon rains compared to the same quarter last year.
• Challenges in Renewable Business: Revenue from renewables was also lower. This was mainly due to unfavorable weather affecting the capacity utilization factor (PLF) and the partial commissioning of a new solar project that is still under its stabilization period.
• Higher Finance and Depreciation Costs: Finance and depreciation expenses rose due to capital expenditures and the commissioning of additional renewable generation capacity.

Generation Capacity

Torrent Power has an installed generation capacity of 4,580 MWp, which includes:

• 2,730 MW of gas-based capacity
• 1,488 MWp of renewable capacity
• 362 MW of coal-based capacity

Additional renewable projects with a combined capacity of 2,979 MWp are under development. Including these projects, Torrent Power’s total generation capacity will be 7,559 MWp. The company also recently received a Letter of Award (LOA) to develop and supply 2,000 MW / 16,000 MWh of Pump Storage Hydropower from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL).

Distribution Operations

Torrent Power distributes nearly 30 billion units annually to over 4.13 million customers across multiple regions:

• Gujarat: Ahmedabad, Gandhinagar, Surat, Dahej SEZ, and Dholera SIR
• Union Territory: Dadra and Nagar Haveli and Daman and Diu
• Maharashtra: Bhiwandi, Shil, Mumbra, and Kalwa
• Uttar Pradesh: Agra

In its licensed areas in Gujarat, Torrent Power has been recognised as a top distributor with the lowest Aggregate Technical & Commercial (AT&C) losses and high-reliability indices. 

About Torrent Power

Torrent Power, part of the ₹41,000 crore Torrent Group, is an integrated power utility valued at ₹27,183 crore. It is one of India’s leading power companies, with a presence across generation, transmission, and distribution.

On November 14, 2024, Torrent Power share price opened at ₹1,600.00, touching the day’s low of ₹1,555.00 as of 10:47 AM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.