Torrent Power YoY net dips 84 per cent; Sees QoQ recovery

Torrent Group’s power generation arm, Torrent Power hposted its Q1FY17 results where QoQ numbers have seen a recovery while the YoY have continued with the fall they gave in the previous quarter. March 2016 results have witnessed a sharp fall in numbers. Company had announced amalgamation of subsidiaries Torrent Energy and Torrent Cables.

The stock of Torrent Power has seen a free fall since April 2016 with no signs of recovery so far. Today it opened with a gap down of 11 points at 160 levels. The stock has recovered but still remains down by 1.5 per cent.

Company’s quarter on quarter consolidated revenues have risen by 3.9 per cent at Rs 2534.1 crores for Q1FY17 as against Rs 2440.02 crores in the previous quarter. During the quarter company’s Power & Fuel expenses, which account for more than 60 per cent of the sales, have seen an increase of 11.8 per cent. Company’s EBITDA has risen 4.2 per cent to Rs 519.8 crores as against Rs 498.77 crores in the previous quarter. Company’s net profits have increased 64.3 per cent to Rs 45.62 crores from Rs 27.76 crores in the previous quarter.

Considering year on year numbers, Torrent Power has seen a drop of 14.8 per cent in revenues and 84 per cent drop in net profits as compared to the corresponding quarter of the previous year.

Earlier in July 2016 the company has announced reduction in its Fuel and Power Purchase Price Adjustment (FPPPA) charge for its consumers. FPPPA charge was reduced to 1.18 per unit as against 1.98 per unit YoY. It’s a boost to the cities and thereby to the ultimate consumers.