Torrent Power shares crack 4% as Q2 net profit falls on lower contribution from thermal, renewable arms

Over the past year, Torrent Power shares galloped around 90 percent.

Torrent Power's stock price tumbled four percent during the morning session on November 14 after the power player reported a weaker earnings show for the quarter ended September.

The power player's net profit came in at Rs 496 crore, down 8.6 percent on-year, as against Rs 542.5 crore in the corresponding quarter of the previous fiscal year.

The revenue from operations gained to Rs 7,175.81 crore, higher by 3.1 percent, compared to Rs 6,960.92 crore in the year-ago period.

At 9.35 am, Torrent Power's shares were quoting Rs 1,575.05 on the NSE, down over four percent compared to the previous close.

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The firm shared a few key reasons for the drop in net profit. There was a lower contribution  from thermal generation mainly on account of reduced sale of merchant power (including sale of LNG) due to lower electricity demand in the current quarter on account of extended and heavy monsoon against comparable quarter last year.

Further, there was lower contribution from renewable businesses due to lower PLF on account of inclement weather conditions and partial commissioning of solar project under stabilisation period.

The finance and depreciation costs rose due to capex  and commissioning of additional
renewable generation capacity, added Torrent Power.

Over the past year, Torrent Power shares galloped around 90 percent, as compared to a 24 percent rise in the Nifty 50 index during the same time.

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