Torrent Power Q2 Results: Net profit falls 8.6% YoY to ₹496 crore; revenue up 3%

Torrent Power Q2 Results: Torrent Power Limited announced its July to September quarter results on Wednesday, November 13. The company's net profit for the second quarter of the financial year 2024-25 fell 8.6 per cent to ₹496 crore, compared to ₹542.5 crore in the same quarter the previous year, according to the BSE filing. 

Torrent Power Ltd. shares closed 1.09 per cent higher at ₹1,640 after Wednesday's trading session, compared to ₹1,658.10 at the previous market close. The company released the second quarter results after market operating hours on Wednesday.

The power company's revenue from core operations increased 3.08 per cent to ₹7,175.81 crore in the second quarter, compared year-on-year with ₹6,960.92 crore.

The company's expenses for the second quarter also rose 4.47% to ₹6,611.83 crore, compared to ₹6,328.44 crore in the same quarter of the previous financial year. Under the expenses of the company, the purchase of electrical energy rose, adding to the rise in expenses for the July to September quarters. 

The company's revenues from power generation activities dropped 6.6 per cent in the second quarter to ₹1,833.55 crore, compared to ₹1,963.73 crore in the same quarter a year ago. The main segment of Transmission and Distribution did well, while the Renewable Energy segment dropped year-on-year. 

Reasons for the lower profit?

According to the company's official statement, the reason for the lower profits in the second quarter results is the lower contribution from thermal generation, mainly due to the reduced sale of merchant power (including LNG), lower electricity demand in the current quarter on account of extended and heavy monsoon compared to the same quarter last year.

The company also cited lesser contribution from its renewable business due to lower Plant Load Factor (PLF) on account of cold weather conditions and partial commissioning of solar projects under the stabilisation period.

The increase in finance and depreciation costs due to capital expenditure and commissioning of additional renewable generation capacity, were also among the reasons, according to the company's statement. 

About Torrent Power 

Torrent Power is a power generation, transmission and distribution company which has a presence across the nation. The company is valued at ₹27,183 crore, according to the official statement. 

The company has a total installed generation capacity of 4,580 megawatts peak (MWp) comprising 2,730 megawatts (MW) of gas-based capacity, 1,488 MWp of renewable capacity and 362 MW of coal-based capacity. Torrent Power also has 2,979 MWp of renewable energy projects in development. 

The company caters to customers from the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat, Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD); Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh.