Torrent Power Q1 net down 44% to Rs 208 cr, revenue up marginally

The company recently signed a Securities Purchase Agreement with a JV of Lightsource BP and UKCI to acquire a 50 Mw solar power project at Maharashtra for an enterprise value of Rs 317 cr

Torrent Power Limited has posted a consolidated net profit of Rs 207.78 crore for the quarter ended June 30, 2021, down by 44 per cent from Rs 373.87 crore for the said quarter last year, according to the company's filings with the stock exchanges.

The company's consolidated revenue from operations were up marginally by three per cent to Rs 3,135.23 crore for Q1 of fiscal year (FY) 2021-22, as against Rs 3,041.72 crore of Q1 of previous FY 2020-21.

According to the company, Torrent Power's Total Comprehensive Income (TCI) for the quarter was lower by Rs 159 crore compared to Q1 of previous year. However, both the quarters were impacted by one-off items. The current quarter has a net one-off charge of Rs 21 crore and the comparative quarter in the previous year had a net one-off gain of Rs 234 crore. Adjusted for these, the TCI has increased from Rs 134 crore to Rs 230 crore, i.e 72 per cent.

The company stated that reasons for improvement in the adjusted TCI for the quarter on a year on year (YoY) basis included significant reduction in T&D losses in franchised distribution businesses, which was severely impacted in the comparative quarter of last year due to Covid 19 pandemic. Moreover, it saw a decrease in interest cost, both due to lower debt and reduction in interest rates along with lower contribution from merchant power sales in gas based businesses.

Recently, the company entered into a Securities Purchase Agreement with a JV of Lightsource BP and UKCI to acquire a 50 Mw solar power project at Maharashtra for an estimated enterprise value of roughly Rs 317 crore for the acquisition subject to closing price adjustments. The project has a remaining life of 22 years and has a PPA with SECI for supply of power at Rs 4.43 per unit. The acquisition is subject to customary conditions for transaction closure.