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Torrent Power Net Profit Dips 8% in March Quarter

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By Rediff Money Desk, New Delhi   May 22, 2024 18:42

Torrent Power reported an 8% decline in net profit to Rs 447 crore in the March quarter due to higher expenses. The company also announced a final dividend of Rs 4 per share.
Torrent Power Net Profit Dips 8% in March Quarter
Illustration: Dominic Xavier/Rediff.com
New Delhi, May 22 (PTI) Torrent Power on Wednesday reported a 7.6 per cent dip in its consolidated net profit at Rs 447 crore in March 2024 quarter mainly due to high expenses.

The company had reported a consolidated net profit of Rs 484 crore in the quarter ended March 2023, a BSE filing showed.

Total expenses rose to Rs 6,008.14 crore in the quarter under review from Rs 5,465.46 crore in the year-ago period.

The consolidated net profit in the entire fiscal also declined to Rs 1,896 crore from Rs 2,165 crore.

"Profit after tax (PAT) for FY 2023-24 stood at Rs 1,896 crore as compared to Rs 2,165 crore for 2022-23. The reduction is on account of one-time higher net gain in FY 2022-23 from trading of LNG of Rs 672 crore. Adjusted for the above, PAT for FY 2023-24 was higher by Rs 403 crore, registering a growth of 27 per cent," the company said in a statement.

The company's board has recommended a final dividend of Rs 4 per equity share with face value of Rs 10 each, it said.

The final dividend, if approved at the ensuing Annual General Meeting, will be paid to the members subject to deduction of tax at source on or before August 28, 2024, it added.

Earlier, an interim dividend of Rs 12 per equity share was paid during the fourth quarter of FY24.

"The demand for power remained very strong during the past year and is expected to remain strong going forward with India being the fastest growing economy across the globe. Torrent Power had a transformative year, with positive developments across existing operations and growth initiatives," chairman Samir Mehta said.

He further stated that with improved visibility in power demand and moderation in LNG prices, we see better prospects of utilization of our gas-based power plants going forward.

"Our distribution business continued to perform well and set new operational benchmarks. The company has also made significant progress in building a large pipeline of renewable projects and made initial inroads in new energy segments of green hydrogen and pump storage hydro," he said.

During the year, Torrent has been awarded renewable projects of about 3 GWp, which are under various stages of development and are expected to be completed in the next 2-3 years, he informed.

Torrent was awarded 18 KTPA (Kilo Tonne Per Annum) capacity project under the PLI (production-linked incentive) scheme for manufacturing of green hydrogen, he noted.

The company has also been able to foray into the pump storage hydro segment, wherein it has been allocated 4 sites, 2 each in UP and Maharashtra, he stated.

The company is well-poised for the next phase of its growth and will endeavour to deliver sustainable growth for its shareholders, he stated.

The board also approved a proposal for raising funds up to Rs 5,000 crore through issuance of equity shares and/or convertible bonds and/or convertible debentures and/ or other securities convertible into equity shares at the option of the company through private placement offering or a Qualified Institutional Placement (QIP) in one or more tranches, subject to approval of the members in the ensuing AGM of the company.

The board approved raising of funds through issuance of non-convertible debentures up to Rs 3,000 crore in one or more tranches by way of private placement.

The company said its board has also approved the appointment of Sunil Dass Mathur as Additional Director (Non-Executive Independent) on the company board from May 23, 2024 till the commencement of the ensuing AGM and will continue for a period of 5 consecutive years from May 23, 2024 till May 22, 2029 (both days inclusive).

Besides, the board also approved elevation of Jinal Mehta as the Vice Chairman and Managing Director of the company from June 1, 2024 till the end of his current term i.e. up to March 31, 2028.

Whole-time Director Varun Mehta relinquished his position after May 31, 2024, which was approved by the board. He will continue to be a non-executive director, liable to retire by rotation.

The board has also approved the appointment of Jigish Mehta as Whole-time Director and designated as Director (Generation) of the company, liable to retire by rotation, for the period of 5 years from June 1, 2024 till the commencement of the ensuing AGM.
Source: PTI
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