On a consolidated basis, Torrent Power's net profit dropped 23.5% to Rs 321.73 crore on a 4.1% decrease in net sales at Rs 2,952.75 crore in Q3 December 2020 over Q3 December 2019.
EBITDA rose 3.53% to Rs 908 crore in Q3 FY21 as compared to Rs 877 crore in Q3 FY20. Profit before tax (PBT) soared 26.5% to Rs 398.68 crore in Q3 December 2020 as against Rs 315.16 crore in Q3 December 2019. Current tax expense for the quarter soared 11.5% to Rs 75.14 crore as against Rs 67.38 crore in Q3 December 2019. The Q3 result was declared after trading hours yesterday, 9 February 2021.
PBT improved due to marked improvement in collection efficiency in franchised distribution business, increase in contribution from renewable generation due to capacity addition and decrease in interest cost, both due to lower debt and reduction in interest rates.
Economic revival in the post lockdown period has resulted in an increase in demand for electricity in Torrent Power's distribution areas and demand has almost reached the level of comparable quarter of last year in all the distribution areas.
The company holds a debt-equity ratio of 0.79 as at 31 December 2020 and net debt to EBITDA ratio of 2.18. It is well poised to participate in the new opportunities coming up in the sector in renewable generation, transmission and privatization of state-owned distribution circles.
The board has approved interim dividend of Rs 5.50 per equity share.
Also Read
Shares of Torrent Power rose 0.43% to Rs 327.20. Torrent Power is a private sector integrated power utility engaged in the business of power generation, transmission and distribution.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content