Torrent Power sees quarterly drop in net profits

A power generation company, Torrent Power has posted a huge drop in its net profits for the Q4FY16 results announced on Wednesday after market hours. The drop was in the wake of reduced other operating income. The stock has opened with a gap down of 9.7 per cent at Rs 205.

Company’s consolidated total income from operations has decreased by 13.5 per cent at Rs 2481.14 crore from Rs 3024.65 crore in the last quarter. EBITDA also has dropped by 47.1 per cent to Rs 498.77 crore as against Rs 943.6 crore, followed by a rise in its direct costs. Company’s net profits stand at Rs. 27.76 crore as against Rs 372.01 crore in Q3FY16.

Year on Year results show that company’s total income from operations has plunged 4.2 per cent from Rs 2589.48 crore, despite of a rise in net sales. EBITDA too has remained negative with 27.6 per cent drop. Net profits have seen a decline of 84.7 per cent YoY.

On a yearly basis Company’s total income from operations has seen a rise of 12.4 per cent from Rs 10396.03 crore to Rs 11687.21 for the year ended March 2016. Net profits have seen an exceptional growth of 140 per cent to Rs 865.60 crore as against Rs 359.69 crore.

Torrent Power is an integrated utility management company, engaged in the business of power generation, transmission and distribution, with operations in the states of Gujarat, Maharashtra and Uttar Pradesh. Its power generation projects are located at Jamnagar, Surat, Ahmedabad, Charanka and Patan. It transmits and distributes over 12 billion units of power to around 2.2 million customers.