Torrent Power Q2 Profit Drops 8.6% on Lower Thermal Output

14 Nov 2024 , 11:39 AM

Torrent Power Ltd. reported an 8.6% decline in Q2 FY25 net profit, reaching ₹481 crore compared to ₹526 crore in Q2 last year.

The profit dip was mainly due to a drop in thermal generation contributions, impacted by lower merchant sales, including LNG, and a decrease in electricity demand amid extended monsoon weather. Revenue rose by 3.1% year-on-year to ₹7,175.8 crore from ₹6,961 crore.

Operating earnings (EBITDA) slightly decreased by 1.2% to ₹1,207.3 crore, with EBITDA margins narrowing to 16.8% from 17.6% in the same period last year.

Lower output from the renewable energy segment also affected performance, as colder weather impacted the Plant Load Factor (PLF). Additional solar projects, currently in the stabilization phase, contributed partially to the reduced renewable generation.

Increased finance and depreciation expenses, attributed to ongoing capital expenditures and new renewable capacity additions, further affected profitability. Torrent Power, a significant entity in India’s power generation, transmission, and distribution sectors, has a current market valuation of ₹27,183 crore.