Torrent Power Q1 profit surges 87% to ₹996 cr; stock hits 52-week high

Torrent Power has reported a 87.15% increase in net profit at ₹996.3 crore for the first quarter of the fiscal year 2024-25, compared to ₹532.3 crore in the same period last year. The strong growth in net profit was attributed to sales from gas-based power plants and growth in licensed distribution businesses. Torrent Power's earnings per share (EPS) rose to ₹20.23 in June 2024, up from ₹10.76 in June 2023.

The company's revenue from operations also witnessed a rise of 23.28%, climbing to ₹9,033.7 crore compared to ₹7,327.6 crore in the previous year. EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the quarter grew by 52% year-on-year (YoY), totaling ₹1,934 crore, up from ₹1,270.48 crore in June 2023.

Following the Q1 results, shares of Torrent Power surged 19.18% to reach a 52-week high of ₹1,906.55 apiece on the BSE today. The scrip opened higher at ₹1,724.45 against the previous closing price of ₹1,599.65 on the BSE. The turnover was ₹83.14 crore, and the company's market cap stood at ₹89,983.48 crore at 3:19 pm today. The stock rose 28.60% over the past month, gained 80.10% in the past six months, and increased 98.74% year-to-date (YTD).

In a separate release, the company informed exchanges that Torrent Power has acquired Torrent Urja 18 Pvt Ltd costing ₹1,00,000. Torrent Urja operates in the hydrogen business.

The board of directors has sanctioned the sale of Torrent Electricals Private Ltd (TEPL) to its holding company, Torrent Investments Private Ltd (TIPL), for ₹85 crore, with the transaction expected to be completed by December 31, 2024. TEPL, which contributes 2.40% to the company’s total revenue, reported a total revenue of ₹651.26 crore. This transaction is classified as a related party transaction conducted at arm’s length.

Torrent Power has a total installed generation capacity of 4,415 MWp (Megawatt), which includes 2,730 MW from gas-based sources, 1,323 MW from renewable sources, and 362 MW from coal-based sources.

Additionally, the company is developing renewable projects totaling 3,077 MWp. With these projects in advanced stages of development, the total generation capacity amounts to 7,492 MWp.

Torrent Power distributes approximately 30 billion units of electricity to over 4.13 million customers across various regions, including Ahmedabad, Gandhinagar, Surat, Dahej SEZ, and Dholera SIR in Gujarat; the Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD); as well as Bhiwandi, Shil, Mumbra, and Kalwa in Maharashtra, and Agra in Uttar Pradesh.