Torrent Power, a leading integrated power utility firm, saw its share price climb sharply in Wednesday's trading session after the company delivered a robust performance for the December quarter.
The power company on Tuesday posted an impressive 88% rise in its consolidated net profit at ₹695 crore for the third quarter of the current fiscal, aided by higher revenues. It had recorded a net profit of ₹369 crore in the year-ago quarter.
Total revenue from operations during the quarter came in at ₹6,443 crore compared to ₹3,767 crore in Q3FY22, an increase of 70.26% YoY.
The operating profit stood strongly at ₹1,444 crore in Q3, a jump of 55% from ₹934 crore in Q3FY22, while the operating profit margin expanded by 300 basis points to 25%. In the preceding quarter, the margin came in at around 17%.
“The major reasons for the improvement in the total comprehensive income for the quarter on a YoY basis are the increase in contribution from existing licenced distribution businesses due to improved performance and the contribution from the operations in Dadra and Nagar Haveli and Daman and Diu, which have been taken over from April 1, 2022,” it said.
Furthermore, "the increase in contribution from franchised distribution business as a result of reduced T&D losses as a result of continuous and sustained focus on loss reduction activities…," the company highlighted.
The company's shares responded positively to the strong Q3 numbers, with the stock opening 8% higher at ₹494.40 apiece in today's trade as against the previous close of ₹457. The stock strengthened further to reach an intraday high of ₹505.40, up by 10.60%.
The stock had a slow start to 2023, correcting 8.61% in January, however, it recovered from all of its losses in February thus far by rising 11.63%.
The company has an aggregate installed generation capacity of 4,160 MW comprising of 2,730 MW of gas-based capacity, 1,068 MW of renewable capacity and 362 MW of coal-based capacity. Further, renewable projects of 736 MW are under development.
The company distributes nearly 26 billion units to over 3.94 million customers across various cities in India.
Torrent Power, which is a part of Torrent Group, is one of the largest power companies in India, with a presence across the entire power value chain—generation, transmission, and distribution.
08 analysts polled by MintGenie on an average have a 'hold' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
