Shares of Torrent Power Ltd slumped 4% on Thursday, 14 November, after the company announced its quarterly earnings for July-September.
The company’s net profit for the quarter under review declined by 8.6% year-on-year (YoY) to Rs 496 crore compared to Rs 542.5 crore reported in the same quarter of the previous fiscal year.
The decline in net profit was attributed to a few key reasons. The contribution from thermal generation declined primarily due to reduced merchant power sales (including LNG) driven by lower electricity demand during the current quarter, attributed to an extended and intense monsoon compared to the same period last year.
Moreover, there was a lower contribution from renewable businesses due to lower PLF on account of unfavourable weather conditions and partial commissioning of solar projects under the stabilisation period.
However, the revenue from operations of the company for the quarter ended 30 September stood at Rs 7,175.81 crore, marking a 3.1% YoY increase from Rs 6,960.92 crore reported in the same quarter last year.
The expenses of the company grew by 4.47% YoY to Rs 6,611.83 crore reported in Q2FY25 against Rs 6,328.44 crore reported in Q2FY24.
At 12:52 pm, the shares of Torrent Power were trading 2.76% lower at Rs 1,599.60 on NSE.
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