Torrent Power fell 1.7% to Rs 311.10 after the company's consolidated net profit tumbled 73% to Rs 202 crore in Q2 September 2020 from Rs 755 crore in Q2 September 2019.
Consolidated net sales for Q2 September 2020 stood at Rs 3,128 crore, declining nearly 19% to Rs 3,842 crore in Q2 September 2019. The result was announced after market hours yesterday, 5 November 2020.Profit before tax (PBT) stood at Rs 230 crore in Q2 September 2020, a decline of 57% over Rs 532.87 crore in the corresponding period last year. Total tax expense of Rs 27.82 crore in Q2 September 2020 compared with tax rebate of Rs 222.74 crore in the same period last year. EBITDA fell 32% to Rs 748 crore in Q2 September 2020 from Rs 1,104 crore in Q2 September 2019.
The company said performance of franchised distribution businesses was impacted due to COVID 19 pandemic causing reduction in electricity demand mainly in commercial and industrial customer categories and increase in T&D loss. Decrease in contribution from renewable generation due to abnormally lower wind speeds during the quarter, lower contribution from merchant power sales due to lower prices of electricity in the spot market also impacted revenue. This was offset by a decrease in interest cost, both due to lower debt and reduction in interest rates.
Torrent Power is a private sector integrated power utility engaged in the business of power generation, transmission and distribution with operations in the states of Gujarat, Maharashtra and Uttar Pradesh.
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