In This Article:
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Torrent Power Ltd (BOM:532779) reported a significant increase in profit before tax, rising to 630 crores from 513 crores in the same quarter last year, marking a growth of about 23%.
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The company's generation business saw a 17 crore increase in contribution, driven by higher sales of merchant power and energy.
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The distribution business improved by 40 crores due to higher volumes and capitalizing on CapEx, solar, and other incentives.
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Torrent Power Ltd (BOM:532779) successfully commissioned a 10 MW solar project, increasing its total generation capacity to 4.7 GW.
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The company is actively pursuing new projects, including a green hydrogen blending project, which is one of the largest private sector blending projects in India.
Negative Points
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The renewable generation segment faced challenges with lower PLF due to reduced wind speeds, impacting contributions from existing wind power projects.
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There was a 10% decline in generation revenues, attributed to lower PLF and other factors.
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The company experienced a non-cash adjustment due to foreign exchange variations, impacting financial performance.
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Despite the increase in EBIT, the thermal generation segment faced challenges with fluctuating fuel prices affecting revenue.
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The company is facing delays in some project timelines, such as the air power merchant project, which has been pushed out by a quarter due to connectivity and land-related issues.
Q & A Highlights
Q: Can you explain the significant increase in other income from INR 53 crores last year to INR 172 crores this year? A: The increase in other income is primarily due to a one-time gain from the sale of our cable division, amounting to INR 77 crores, and higher treasury income booked during the quarter. - CFO
Q: Your generation revenues have decreased by 10%, but EBIT has increased by 50%. Can you explain this discrepancy? A: The decrease in generation revenue is linked to lower fuel prices, while the increase in EBIT is due to higher merchant sales, LNG sales, and foreign exchange gains. - CFO
Q: Could you provide details on the CapEx incurred over the past nine months across different segments? A: For the nine months, we incurred CapEx of INR 915 crores in licensed distribution, INR 176 crores in franchise, and INR 130 crores in transmission, totaling approximately INR 1,250 crores. For renewables, it was about INR 1,300 crores. - CFO