Torrent Power slumps over 6% after net profit, Ebitda slip in Q2 results

Torrent Power’s stock dipped as much as 6.32 per cent to hit an intraday low of Rs 1,541.45 per share on the BSE after the company reported a sluggish financial performance in its second quarter of financial year 2024-25 (Q2FY25).

 

Torrent Power Ltd. reported an 8.6 per cent year-on-year (Y-o-Y) decline in net profit for Q2 FY25, with earnings falling to Rs 481 crore from Rs 526 crore in the same quarter last year. However, the company saw a 3.1 per cent rise in revenue, which grew to Rs 7,175.8 crore from Rs 6,961 crore a year ago. 

 

Operating earnings or earnings before interest, tax, depreciation, and amortisation (Ebitda) declined 1.2 per cent to Rs 1,207.3 crore, while Ebitda margins narrowed to 16.8 per cent from 17.6 per cent in Q2FY24.

 

The company stated that the increase in contribution from licensed distribution businesses was offset by lower contribution from thermal generation mainly on account of reduced sale of merchant power (including sale of LNG) due to lower electricity demand in the current quarter on account of extended and heavy Monsoon against comparable quarter last year.

 

Lower contribution from renewable businesses due to lower PLF (plant load factor) on account of inclement weather conditions and partial commissioning of solar projects under the stabilisation period also impacted profitability, the company said.

 

Further, higher finance and depreciation costs due to capital expenditure and commissioning of additional renewable generation capacity also impacted the bottomline.

 

Torrent Power is a leading integrated power utility and one of the largest private sector players in India, with operations spanning power generation, transmission, distribution, and the manufacturing and supply of power cables. The company has a diverse energy portfolio, including coal-based, gas-based, and renewable power plants.

Torrent Power share price history

The company’s stock has outperformed the market year to date as it has risen 67 per cent, while gaining 91 per cent in the last one year. In comparison BSE Sensex has risen 7.7 per cent year to date and 19.8 per cent in a year. 

 

The company has a total market capitalisation of Rs 6,203.45 crore. Torrent Power shares are trading at a price to earnings multiple of 33.15 times and at an earning per share of Rs 47.70. 

 

At 10:01 AM; the shares of the company were trading 4.04 per cent lower at Rs 1,578.90 a piece. By comparison, the BSE Sensex was up 0.33 per cent at 77,948.71 level.