Private power player, Torrent Power Ltd , rallied on the bourses after posting an impressive financial performance for the quarter ended September 2019. The company shares gained over 5 per cent to hit an intra-day high of Rs 298.8 on Wednesday on the BSE, inching towards the 52-week high of Rs 313.80, last seen in July this year.
Torrent Power posted a standalone net profit of Rs 743 crore for the quarter ended September 30, 2019, up 85 per cent on the Rs 402 crore recorded in the corresponding quarter a year ago. Total income for the period stood at Rs 3,840 crore, up from Rs 3,449 crore in the same quarter last year.
On a consolidated basis, the company's net profit for the quarter stood at Rs 756 crore, up 83 per cent from Rs 414 crore in the corresponding quarter last year. The total consolidated income for the period stood at Rs 3,891 crore, up from Rs 3,489 crore in the same quarter last year.
For the six-month period, consolidated profit stood at Rs 1,032 crore, up 61 per cent from Rs 641 crore in the same period last year. Total income for the first-half of the fiscal was recorded at Rs 7,682 crore, up from Rs 7,069 crore in the same period last year.
The company attributed multiple factors for the performance, including contribution from new long-term PPAs for the 278 MW Unosugen plant operationalised during the quarter, and higher merchant power sales during the quarter, besides a favourable judgement from the Appellate Tribunal for Electricity in respect of disputed carrying cost recovery pertaining to an earlier year.
"Reduction in tax expenses due to recoverability of previously unrecognised MAT credit, pursuant to a reduction in the MAT rate vide Taxation Laws (Amendment) Ordinance, 2019, a one-off provision towards potential damages and other project-related costs arising from expected delays in setting up a wind power project," were also drivers for the performance, the company said, besides factors such as an increase in finance and depreciation costs, reflecting additional capex in distribution and renewable projects.
The board of directors at its meeting approved a Scheme of Arrangement for transfer of the cable business undertaking of the company to TCL Cables Pvt. Ltd, a wholly-owned subsidiary, on a going concern basis by way of a slump sale, with effect from April 1, 2020. The scheme is subject to approval of the regulatory authorities and the National Company Law Tribunal, it added.