Torrent Power

Sales up 6%, Net (after MI) up 22%

Aug 17, 2019 06:08 IST capital market

Consolidated sales of Torrent Power were up by 6% to Rs 3736.13 crore for the quarter ended June 2019. Higher sales, together with 60 bps expansion in operating profit margin (OPM) to 22.3% the operating profit was up by 9% to Rs 833.67 crore. The other income was higher by 4% to Rs 54.48 crore and thus the PBIDT was up by 8% to Rs 247.71 crore. The interest cost was up by 8% to Rs 247.71 crore and depreciation was up by 6% to Rs 320.57 crore. With interest cost and depreciation as proportion to OP stand lower, the PBT grew by 11% to Rs 319.87 crore. The EO income was nil for the quarter as well as corresponding previous period. Thus the PBT after EO was up by 11% to Rs 319.87 crore. The tax was down by 28% to Rs 43.28 crore and thus the PAT was Rs 276.59 crore, a growth of 22%. The non-controlling interest was a share of profit of Rs 1.32 crore, a fall of 10%. And thus the PAT attributable to owners was up by 22% to Rs 275.27 crore.

The major contributors for the increase in net profit attributable to owners for the quarter are: 1) Increase in contribution from merchant power sales during the quarter; 2) Higher profits from Renewables business; 3) Improved performance of licensed and franchised distribution businesses on back of reduction in T&D losses, higher regulated ROE in licensed distribution business & favourable resolution of a regulatory dispute and 4) Reduction in tax expenses due to improved recoverability of past MAT credits and lower deferred tax liabilities. However the Decrease in contribution from long term PPA of gas based generation plant due to new CERC tariff regulations as well as the increase in finance and depreciation costs, reflecting additional capex in distribution and renewable projects has moderated the gain to an extent.

Expansion in OPM to the extent of 60 bps to 22.3% was largely due to lower cost of electricity purchased and lower material cost (including cost of traded goods). Cost of electricity purchased as proportion to sales (net of stocks) was down by 330 bps to 31.5%. Similarly the material cost was down by 160 bps to 2.6%. Though fuel cost, staff cost and OE stood higher by 340 bps (to 33.6%), 20 bps (to 3.3%) and 50 bps (to 6.6%) that could not fully offset the gain in cost of electricity purchased and material cost.

Other developments

During Q1FY20 the regulator approved a long term power procurement arrangement for 278 MW between the Companys Licensed Distribution Business and UNOSUGEN Power Plant (capacity of 382.5 MW). The approval, for the balance life of the plant of 19 years, will enable steady base load operations for UNOSUGEN plant, resulting in recovery of project loan interest and depreciation thereon.

Torrent Power : Consolidated Results

 

1906 (3) 1806 (3) Var. (%) 1903 (12) 1803 (12) Var.(%)
Sales 3736.13 3528.13 6 13150.97 11512.09 14
OPM (%) 22.3 21.7 24.3 27.1
OP 833.67 766.41 9 3199.48 3117.13 3
Other income 54.48 52.29 4 189.59 263.55 -28
PBIDT 888.15 818.70 8 3389.07 3380.68 0
Interest 247.71 229.24 8 898.93 848.19 6
PBDT 640.44 589.46 9 2490.14 2532.49 -2
Depreciation 320.57 301.78 6 1226.53 1131.50 8
PBT 319.87 287.68 11 1263.61 1400.99 -10
Regulatory Income (RI) 0.00 0.00 0.00 0.00
PBT After RI before EO 319.87 287.68 11 1263.61 1400.99 -10
EO Income 0.00 0.00 0.00 0.00
PBT after RI 319.87 287.68 11 1263.61 1400.99 -10
Tax 43.28 60.36 -28 359.78 448.87 -20
PAT 276.59 227.32 22 903.83 952.12 -5
Non controlling Interest (NCI) 1.32 1.47 -10 4.89 9.81 -50
PAT after NCI 275.27 225.85 22 898.94 942.31 -5
EPS (Rs)* # # 18.7 19.6
* EPS on Post issue equity capital of Rs 480.62 crore. Face Value: Rs 10
# EPS is annualised in case of half/ quarter financials
Figures in Rs crore
Source: Capitaline Corporate Database

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