20 DALAL STREET INVESTMENT JOURNAL I JULY 22 - AUG 4, 2019 DSIJ.in^
Torrent Power Ltd. (TPL)
is engaged in the business
of electricity generation,
transmission and
distribution. It is a
prominent player in the
Indian power sector. It
possesses an installed generation
capacity of 3.7 GW and under-
construction capacity of 0.8 GW. It has a
well-established track record of
successfully executing a number of large
power projects. It is the only company
which is the sole electricity distributor to
the cities of Ahmedabad, Surat,
Bhiwandi and Agra, with a distribution
reach of more than 1,367 sq. km.
Additionally, it is also engaged in themanufacture and supply of power cables.
Financial Performance
The consolidated financial performance
for the quarter ended March 2019 stands
as follows: Total income from operations
increased 4.07 per cent YoY to
`2,924.80 crore in Q4FFY19 as against
`2,810.36 crore in Q4FY19. EBITDA
showcased a modest growth of 2.83 per
cent YoY as it reached `709.80 crore in
Q4FY19 from `690.26 crore in Q4FY18.
Consequently, EBITDA margin stood at
24.27 per cent in Q4FY19 versus 24.
per cent in Q4FY18. Net profit dropped
substantially to `24.80 crore in Q4FY
from `221.25 crore in Q4FY18, a drastic
fall of 88.79 per cent. As a result, EPSThe privatization of
electricity distribution in
India is speeding up, thereby
generating new and lucrative
growth opportunities. TPL
boasts one of the strongest
balance sheets in the private
power sector.Analysis Equity
Torrent Power
POTENTIAL FOR GENERATING ELECTRIFYING RETURNS!