Torrent Power posted a weaker first-quarter earnings performance, with consolidated net profit falling 13% from a year earlier, even as the utility delivered modest growth in revenue and a slight improvement in operating profitability.
The company's consolidated profit fell to Rs 639 crore in the quarter ended June, compared with Rs 731 crore in the corresponding period last year.
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The decline in earnings came despite steady growth in the top line and a marginal improvement in profitability at the operating level.
Revenue from operations rose 2.8% year-on-year to Rs 8,124 crore from Rs 7,906 crore a year earlier, reflecting stable business momentum across its power generation, transmission and distribution operations.
Operating performance remained resilient during the quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 3.7% to Rs 1,538 crore, compared with Rs 1,483 crore in the year-ago period.
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EBITDA margin also improved marginally to 18.9% from 18.8%, indicating that the company maintained cost discipline despite a relatively modest rise in revenue.
The quarter's performance suggests that while Torrent Power was able to sustain revenue growth and protect operating margins, higher costs below the operating line weighed on overall profitability, leading to a double-digit decline in net profit.
Despite steady operating performance and a marginal improvement in margins, the decline in net profit is likely to shift investor focus to the factors that weighed on the company's overall earnings during the quarter.
Going forward, sustained demand growth, execution across regulated businesses and improved operational efficiencies will be key factors in supporting earnings momentum over the coming quarters.
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