Shares of this power stock under the ‘mid-cap’ category increased 4 percent in Friday’s trading session after the company posted financial results for Q2FY24, i.e., for the quarter ended September 2023.
With a market capitalization of Rs 37,440.05 crores, the stocks of Torrent Power Limited started their trading session on Friday at Rs 769.85 and currently trades at Rs 781. The scrip witnessed an intra-day high of Rs 788.35 indicating a gain of around 4 percent compared to the previous close of Rs 756.90 apiece.
Such bullish sentiments around the stock prices were observed after the company published financial results for the quarter ended September 2023.
On a sequential basis, the company’s operating revenues and after-tax profits have shown movements in opposing directions with the former, on one end, reducing from Rs 7,327.62 crores during Q1FY23-24 to Rs 6,960.92 crores during Q2FY23-24, and, the latter, on the other end, moving up from Rs 532.28 crores to Rs 542.55 crores.
On a yearly basis, the company posted growth in both the metrics mentioned above with the operating revenues going up from Rs 6,703.15 crores during Q2FY22-23 to Rs 6,960.92 during Q2FY23-24, and, the after-tax profits, during the same period, increasing from Rs 484.19 crores to Rs 542.55 crores representing a jump of around 12 percent.
During the recent financial years, the company, due to increased sales and effective cost management, increased its profitability ratios such as the return on equity (RoE) as well as return on capital employed (RoCE).
The former increased from 4.56 percent during FY21-22 to 20.66 percent during FY22-23, and, the latter, keeping the timeframe the same, moved up from 6.44 percent to 19.04 percent.
According to the shareholding pattern available for the quarter ended September 2023, the company’s Promoters hold a 53.57 percent stake, and the Foreign Institutional Investors (FIIs), increasing their stake, currently hold a 6.17 percent stake in the company.
Torrent Power Limited is a utility company based in India that is engaged in the business of power generation, distribution, and transmission. The company operates a portfolio of gas, coal, wind, and solar power plants generating a majority of its revenue from the supply of power through its power grids to areas of Western and Northern India.
Written by Amit Madnani
