Torrent Power announces Q3 FY 2023-24 financial performance with key insights

Torrent Power Limited, a key player in India‘s power sector, disclosed its financial outcomes for the quarter ending December 31, 2023. Despite a reduction in Earnings Before Interest, Depreciation, and Tax (EBIDTA) primarily due to a decrease in net gain from the trading of LNG and merchant power sales by ₹478 crores compared to the same quarter the previous year, the company’s adjusted EBIDTA and Profit After Tax (PAT) showcased an encouraging uptick.

The adjusted EBIDTA and PAT for Q3 FY 2023-24 saw an increase of ₹49 crores and ₹31 crores, respectively, on a year-over-year basis. This improvement is attributed to several key factors, including enhanced contributions from licensed distribution businesses and the renewable segment, thanks to capacity additions and higher wind Power Load Factor (PLF). Moreover, a reduction in tax expenses and a counterbalance by higher depreciation expense also played a significant role.

Torrent Power reported operational revenue of ₹6,366 crores during the quarter, with a slight decrease from the ₹6,443 crores recorded in Q3 FY 2022-23. However, the Year-To-Date (YTD) revenue for FY 2023-24 increased to ₹20,655 crores, up from ₹19,656 crores in the same period the previous year. The company’s profit for the period in Q3 FY 2023-24 stood at ₹374 crores, compared to ₹695 crores in Q3 FY 2022-23, with the YTD PAT reaching ₹1,449 crores against ₹1,681 crores in the prior year.

Torrent Power’s Interim Dividend and Renewable Business Growth in Focus for Q3 FY 2023-24

Amidst the financial disclosures, Torrent Power’s board approved an interim dividend of ₹12.00 per equity share, reflecting the company’s commitment to shareholder returns. With an integrated power utility value of ₹25,694 crores under the ₹37,600 crores Torrent Group, Torrent Power has a formidable presence across the power value chain, including generation, transmission, and distribution.

The company boasts an impressive installed generation capacity of 4,287 MW, encompassing gas-based, renewable, and coal-based capacities. With renewable projects of 977 MW under development, Torrent Power’s total generation capacity is set to reach 5,264 MW. In distribution, it serves over 4.03 million customers across multiple regions, maintaining the lowest Aggregate Technical & Commercial (AT&C) losses and leading reliability indices in India.

Torrent Power’s Q3 FY 2023-24 results reflect a resilient performance amidst challenging market conditions. The company’s strategic focus on expanding its renewable energy portfolio and maintaining operational excellence in distribution underscores its commitment to sustainable growth and shareholder value. As Torrent Power continues to navigate the complexities of the energy sector, its latest financial performance and strategic investments in renewable energy signal a positive outlook for the future.