Shares of one of the largest companies in the country’s power sector with a presence across the entire power value chain—generation, transmission and distribution—moved up by nearly 2.4 percent on BSE during Friday’s trading session.
Price Movement
With a market cap of Rs. 74,847.3 crores, the shares of Torrent Power Limited closed in the green at Rs. 1,485.35, up by around 1.2 percent, compared to its previous closing price of Rs. 1,468.4.
The stock hit its 52-week high at Rs. 2,037.35 on 22nd October 2024, and compared to Friday’s closing price of Rs. 1,485.35, the stock is trading at a discount of nearly 27 percent. The stock has delivered positive returns of nearly 19.4 percent over a one-year period, as well as around 15 percent returns in the last one month.
Capex Guidance
During the first nine months, the company incurred a total capex of nearly Rs. 1,250 crores, distributed as follows: Rs. 915 crores for license distribution, Rs. 176 crores for franchisee operations, and Rs. 138 crores for transmission. Further, the renewable energy capex for the same period stood at around Rs. 1,300 crores.
For the upcoming financial year, Torrent Power maintains a capex target of Rs. 2,000 crores, with Rs. 1,750 crores allocated for license distribution and Rs. 250 crores for franchise operations.
Operational Capacity
The company has a total installed generation capacity of 4,754 MWp, comprising 2,730 MW of gas-based capacity, 1,662 MWp of renewable energy, and 362 MW of coal-based capacity. Additionally, 2,965 MWp of renewable energy projects are currently under development, bringing the total generation capacity—including ongoing projects—to 7,719 MWp.
The total installed capacity (including pipeline) is expected to reach 7,719 MWp, with gas capacity remaining stable at 2,730 MWp, wind increasing to 2,340 MWp, solar growing to 2,287 MWp, and coal remaining steady at 362 MWp. On the distribution front, the company supplies approximately 30 billion units of electricity to over 4.13 million customers across multiple regions.
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Project Updates
- New Capacity Commissioned: The 300 MW solar project was fully commissioned in Q3 FY25, bringing the aggregate generation capacity to 4.7 GW.
- Pipeline Projects: The current pipeline includes 3 GW of renewable energy projects, a pump storage project, and two transmission projects situated at Khavda and Solapur.
- Green Hydrogen Project: A pilot project on green hydrogen blending with CNG in UP, one of the largest private sector blending projects in India, has been commissioned and is currently undergoing trial runs.
Transmission Projects in Pipeline:
The company secured the Solapur Transmission Project through the Tariff-Based Competitive Bidding (TBCB) process for evacuating 1,500 MW of renewable energy power.
The project includes a 400 kV double-circuit transmission line spanning ~44 km, along with two line bays and one substation. With an estimated project cost of Rs. 470 crores, the transmission project is expected to be completed by FY26.
Financial
Torrent Power experienced a marginal growth in its revenue from operations, showing a year-on-year increase of around 2 percent from Rs. 6,366 crores in Q3 FY24 to Rs. 6,499 crores in Q3 FY25.
Similarly, its net profit increased during the same period from Rs. 374 crores to Rs. 489 crores, indicating a rise of nearly 31 percent YoY. EBITDA for Q3 FY25 decreased by about 15 percent YoY to Rs. 171 crores, down from Rs. 201 crores in Q3 FY24. The company is utilizing proceeds from the QIP (Rs. 3,500 crores) primarily for debt repayment (75 percent) and general corporate purposes (25 percent). Torrent Power targets to Increase the Renewable Portfolio to 4.6 GW.
About the Company
Torrent Power Limited, the Rs. 27,183 crore integrated power utility of the Rs. 41,000 crore Torrent Group, is engaged in the business of generation, renewables, transmission, and distribution of electricity. Torrent Power is widely recognized as a leading power distributor in India, known for achieving the lowest AT&C losses and maintaining the best reliability indices in its licensed areas in Gujarat.
Written by Shivani Singh
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