Torrent Power (TORNTPOWER) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 profit before tax was INR 1,315 crore, up 85% year-over-year, with profit after tax at INR 996 crore, an 87% increase, driven by strong merchant power sales and improved licensed distribution performance.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, and the sale of 100% equity in TEPL for ₹85 crore.

• Revenue from operations for Q1 FY25 was ₹9,034 crore, a 23% increase compared to Q1 FY24.

• Major profit drivers included a gain of INR 517 crore from merchant power and LNG sales, supported by favorable market conditions and higher plant load factors.

• Distribution business saw higher demand (6%-7% growth) but was partially offset by increased T&D losses.

Financial highlights

• Merchant market sales reached 1,700 MUs in Q1 FY25, up from 400 MUs in Q1 FY24.

• EBITDA for FY24 reached ₹6,675 crore, with Q1 FY25 PBDIT at ₹2,115 crore, up 52% year-over-year.

• Consolidated net profit after tax for Q1 FY25 was ₹996.34 crore, compared to ₹532.28 crore in Q1 FY24.

• Finance cost for Q1 FY25 was ₹260 crore, and depreciation & amortization stood at ₹359 crore.

• Incremental profit from merchant and LNG sales was INR 517 crore versus INR 145 crore in the prior year.

Outlook and guidance

• Multiple renewable and hybrid projects totaling over 3,200 MW are in the pipeline, with phased commissioning through FY26.

• Targeting 5 GW renewable capacity in 2-3 years; 4 GW currently under construction.

• Investment guidance: INR 1,750 crore for licensed distribution, INR 200-250 crore for franchise, and INR 18,000-20,000 crore in renewables over 3-4 years.

• Transmission projects for evacuation of 6 GW+ RE power are under development, with expected project costs of ₹1,270 crore.

• Scheme of Arrangement for transfer of Renewable Power Undertaking to a subsidiary was approved by stakeholders and is pending regulatory approvals.