Torrent Power (TORNTPOWER) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue from operations was ₹7,176 crore, up 3% year-over-year, while profit after tax declined 9% to ₹496 crore due to lower thermal and renewable contributions and higher costs.

• Q2 FY25 PBT was ₹689 crore, down 7% year-over-year; adjusted for one-offs, PBT was ₹622 crore, a 16% decline from last year.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, with no material misstatements identified by auditors.

• Licensed distribution businesses saw increased contribution, offset by reduced merchant power sales and lower renewable PLF due to weather and partial commissioning.

• Non-recurring credit of ₹67 crore included favorable orders and carrying cost allowance, partially offset by lower wind generation due to Cyclone Asna.

Financial highlights

• EBITDA for Q2 was ₹1,332 crore, flat year-over-year; H1 EBITDA rose 26% to ₹3,266 crore.

• Standalone revenue from operations for Q2 FY25: ₹5,293.19 crore; consolidated: ₹7,175.81 crore.

• Standalone net profit for Q2 FY25: ₹491.85 crore; consolidated net profit: ₹495.72 crore.

• Thermal generation contribution fell by ₹80 crore, mainly due to lower merchant power/LNG sales and higher O&M expenses.

• Employee costs rose 18% and other expenses 14% year-over-year, with forex loss of ₹24 crore booked as a non-cash item.

Outlook and guidance

• Renewable energy capacity of 274 MW was commissioned, raising total installed capacity to 4.5 GW as of September 2024.

• Pipeline includes 3 GW of renewables, 2 GW of pumped storage hydro, and two transmission projects.

• Targeting a significant increase in renewable portfolio to 4.4 GW, with 3,225 MWp under installation and 8.4 GW of pumped storage hydro projects in planning.

• Awaiting regulatory and NCLT approvals for the transfer of Renewable Power Undertaking; no adjustments made yet in financials.

• Strategic focus on green hydrogen, green ammonia, and flexible generation to offer competitive RTC power.