Torrent Power Ltd (NSE:TORNTPOWER)
₹ 1923.8 -30.9 (-1.58%) Market Cap: 924.90 Bil Enterprise Value: 1.03 Tn PE Ratio: 40.40 PB Ratio: 7.67 GF Score: 93/100

Q4 2024 Torrent Power Ltd Earnings Call Transcript

May 22, 2024 / 01:00PM GMT
Release Date Price: ₹1381.8 (-2.49%)

Key Points

Positve
  • Reported PBT for the quarter stood at INR617 crores, showing a growth of about 31% compared to the corresponding quarter of last year.
  • Improvement in overall contribution of thermal generation business by INR132 crores, driven by higher offtake under long-term PPA and gains from merchant power sales.
  • Profitability of the renewable segment increased by INR26 crores due to improved PLF for wind power projects and contributions from new wind projects.
  • Three gigawatt capacity of renewable power projects are in the pipeline, indicating strong future growth potential.
  • The company has investment plans close to INR20,000 crores in the next two to three years, focusing on renewable and transmission projects.
Negative
  • Reported PBT for the year stood at INR2,583 crores, a decrease from INR3,041 crores in FY23, primarily due to lower net gains from the sale of LNG.
  • Reduction in contribution from the distribution business by INR22 crores, mainly due to higher T&D losses and increased regulatory gap costs.
  • Higher T&D losses were observed in Ahmedabad, attributed to seasonal variations.
  • The company has not recognized any carrying cost income for Q4 of the current year due to deferred tariff orders.
  • Regulatory assets increased significantly by INR900 crores, mainly concentrated in DNH & DD, which could impact future financials.
Operator

Ladies and gentlemen, good day, and welcome to the Torrent Power Limited Q4 FY24 earnings conference call. (Operator Instructions)

Please note that this conference is being recorded. I now hand the conference over to Mr. Saurabh Mashruwala, CFO, from Torrent Power Limited. Thank you, and over to you, sir.

Saurabh Mashruwala
Torrent Power Ltd - Chief Financial Officer

Good evening, all of you, and thank you for joining Torrent Power earnings call for Q4 FY24. First, I will take you through the performance of the quarter as well as for the full year, after which phone lines will be opened for the Q&A session. Let's look at the performance of the company at PBT level.

Reported PBT for the quarter stood at INR617 crores as compared to INR668 crores in the corresponding quarter of last year. Main reason for the lower profit in the current quarter is on account of lower net gains from sale of LNG of INR91 crores compared to the corresponding quarter of the last year.

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