Torrent Power gained 1.65% to Rs 437.90 after the company's consolidated net profit stood at Rs 398.10 crore in Q4 FY21 compared with net loss of Rs 273.94 crore in Q4 FY20.
Net sales rose 3.4% to Rs 3,084.13 crore in Q4 FY21 as against Rs 2,983.50 crore in Q4 FY20. The company reported pre-tax profit of Rs 455.28 crore in Q4 FY21 as against pre-tax loss of Rs 693.06 crore in Q4 FY20. EBITDA grew 10% to Rs 947 crore in Q4 FY21 compared with Rs 864 crore in Q4 FY 2019-20.
The total comprehensive income got a boost from higher recovery of carrying cost pertaining to earlier years compared to previous year due to favourable orders from the Appellate Tribunal for Electricity. The higher gain from trading of LNG was partially compensated by lower contribution from merchant power sales. The company witnessed a decrease in interest cost, both due to lower debt and reduction in interest rates.
The performance of the franchised distribution business was impacted due to COVID-19 pandemic causing a reduction in electricity demand mainly in commercial and industrial customer categories; and increase in T&D loss, lower PLF from renewable generation mainly due to lower wind resources, partially compensated by the additional capacity available for the full year.
The net profit rose 10% to Rs 1,296 crore on 11% decline in revenue from operations to Rs 12,173 crore in the year ended March 2021 (FY21) over the year ended March 2020 (FY20). EBITDA fell 3% to Rs 3,607 crore in FY21 over FY20.
Commenting on the Q4 results, Samir Mehta, the chairman of Torrent Power, has said that: "Despite the impact of COVID-19 pandemic and significant stress in the power sector, Torrent Power continued to deliver industry leading returns in the private sector on account of the company's strategy to pursue risk-adjusted profitable opportunities, strong execution capabilities and focus on operational excellence. With our strong balance sheet, the company will continue to pursue profitable growth opportunities across the entire value chain of the power sector."
The board has recommended final dividend of Rs 5.50 per equity share for FY 2020-21. The company reported net debt reduction of Rs 1,093 crore during the year. The net debt as on 31 March 2021 stands at Rs 7,808 crore.
Torrent Power is a private sector integrated power utility engaged in the business of power generation, transmission and distribution.
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