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.

• Adjusted PBT for Q2 FY25 was ₹622 crore, a 16% decline year-over-year, with a non-recurring credit of ₹67 crore included.

• 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.

• Key projects and asset sales progressed, including the sale of Torrent Electricals Limited and regulatory approvals for renewable business transfer.

Financial highlights

• EBITDA for Q2 FY25 was ₹1,332 crore, flat year-over-year; H1 EBITDA rose 26% to ₹3,266 crore.

• Standalone revenue for Q2 FY25 was ₹5,293.19 crore; consolidated net profit for Q2 FY25 was ₹495.72 crore.

• Merchant profit dropped to ₹7 crore on 300 MUs sold, reflecting subdued margins.

• Employee costs rose 18% and other expenses by 14%, with a forex loss of ₹24 crore booked as other expenses.

• Other income increased to around ₹140 crore, attributed to normal growth.

Outlook and guidance

• Renewable capacity expansion continues, with 274 MW commissioned in the quarter and a pipeline of 3 GW renewables and 2 GW pumped storage hydro.

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

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

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

• Company remains focused on securing land and grid connectivity for future renewable projects.