TORRENT POWER LTD Announces Quarterly Results (1QFY21); Net Profit Up 35.2%

Tue, 18 Aug

TORRENT POWER LTD has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

TORRENT POWER LTD Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-19*	3 Mar-20*	3 Jun-20*	QoQ Change	YoY Change
Net Sales	Rs m	37,361	29,835	30,071	0.8%	-19.5%
Other income	Rs m	545	373	347	-7.2%	-36.4%
Turnover	Rs m	37,906	30,208	30,417	0.7%	-19.8%
Expenses	Rs m	29,025	21,565	20,377	-5.5%	-29.8%
Gross profit	Rs m	8,337	-1,730	9,694		16.3%
Depreciation	Rs m	3,206	3,350	3,159	-5.7%	-1.5%
Interest	Rs m	2,477	2,224	2,203	-0.9%	-11.1%
Profit before tax	Rs m	3,199	-6,931	4,678		46.3%
Tax	Rs m	433	-4,191	940		117.1%
Profit after tax	Rs m	2,766	-2,739	3,739		35.2%
Gross profit margin	%	22.3	-5.8	32.2
Effective tax rate	%	13.5	60.5	20.1
Net profit margin	%	7.3	-9.1	12.3

Year-on-Year Performance:

• The company's operating income during the quarter fell 19.5% on a year-on-year (YoY) basis. The expenses were down by 29.8% YoY during the same period.
• The company's operating profit increased by 16.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 32.2% in 1QFY21 as against 22.3% in 1QFY20.
• Depreciation charges declined by 1.5% and finance costs declined by 11.1% YoY, respectively.
• Other income declined by 36.4% YoY during the quarter.
• Net profit for the quarter increased by 35.2% YoY. Net profit margins during the quarter increased from 7.3% in 1QFY20 to 12.3% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 0.8% on a quarter-on-quarter (QoQ) basis. The expenses were down by 5.5% QoQ during the same period.
• The company's operating profit declined by 660.5% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 32.2% in 1QFY21 as against 5.8% in 4QFY20.
• Net profit for the quarter increased by 236.5% QoQ, while net profit margins increased from -9.1% in 4QFY20 to 12.3% in 1QFY21.

To see how TORRENT POWER LTD has performed over the last eight quarters,please visit here.

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TORRENT POWER LTD Share Price Performance

Over the last one year,TORRENT POWER LTD share price has moved up from Rs 288.8 to Rs 345.2, registering a Gain of Rs 56.4 or around 19.5%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 1,624.1 (down 0.0%). Over the last one year it has moved down from 1,906.1 to 1,624.1, a gain of 282 points (down 14.8%).

Overall, the S&P BSE SENSEX is up 2.3% over the year.

Current Valuations

At the current price of Rs 345.2, the price to earnings (P/E) ratio of TORRENT POWER LTD stands at 13.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.1 times.