Torrent Power standalone profit dips 21% to ₹346 crore

Torrent Power Ltd posted a standalone net profit of ₹346 crore for the quarter ended December 2020, down by 21 per cent from ₹440 crore in the same quarter last year. Company’s standalone revenues from operations for the quarter stood at ₹2,867 crore as against ₹3,048 crore in the corresponding quarter a year ago. On consolidated basis, company’s net profit for the quarter stood at ₹322 crore, as against ₹421 crore in the same period last year.

Consolidated revenues from operations for the quarter were ₹2,953 crore as against ₹3,079 crore in the same quarter last year. Company’s board of directors met on Tuesday and approved the interim dividend of ₹5.50 (or 55 per cent) per equity share of ₹10 each with record date fixed at February 17, 2021.

Company’s consolidated EBITDA for the quarter was at ₹908 crore, as against ₹877 crore in the same quarter last year. On the Covid-19 impact, Torrent Power informed that the pandemic had impacted the demand for electricity and collection of electricity bills from consumers during the first half of the current year.

“Gradual revival of the economy has resulted in an increase in demand for electricity and the measures taken by the company to recover the dues, has improved the collection efficiency and consequently there is a partial reversal of past provision for doubtful debts made in earlier periods in the distribution franchisee business,” it said.

It further stated that the company enjoys a strong balance sheet position with some of the best financial ratios amongst private players in the power sector. It has a debt-equity ratio of 0.79 as on December 31, 2020, and a net debt-to-EBITDA ratio of 2.18 for fiscal 2019-20.

It is well poised to participate in the new opportunities coming up in the sector in renewable generation, transmission and privatisation of state owned distribution circles, the company said. Torrent Power shares ended positive at ₹325.80, up 1 per cent from the previous close, on BSE on Tuesday.