Shares of Torrent Power surged over 18% on Wednesday, reaching a record high of Rs 1,898, following the company’s June quarter earnings report released after market hours on Tuesday.
Strong Revenue and EBITDA Growth
The company’s revenue for the quarter increased by 23.3% to Rs 9,033.7 crore, while Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 57% to Rs 1,857.9 crore.
The management attributed the strong performance to higher contributions from merchant power sales in gas-based power plants and an increased contribution from its licensed distribution business.
Improved Margins and Core Generation Revenue
EBITDA margin expanded significantly by over 400 basis points to 20.6% from 16.2% in the same quarter last year. Revenue from the core generation business saw a substantial 65% year-on-year increase, reaching Rs 3,677.6 crore.
How is the Power Segment Doing?
The Plant Load Factor (PLF) for the Thermal business improved to 60.4% from 39.6% last year, although PLF for Wind and Solar segments experienced a decline compared to the previous year.
Stock Performance in last one year
Torrent Power shares have delivered positive returns across various time frames. Over the last month, the stock has shown a positive return of 28.15%, indicating short-term growth. In the last six months, the performance has been even more impressive, with a substantial increase of 79.33%, showcasing the stock’s resilience and upward momentum.
Year-to-date, Torrent Power shares have surged by 97.89%, emphasizing the stock’s positive trajectory in the current calendar year. Looking back over the last twelve months, the stock has demonstrated significant growth, surpassing 175.82%. These consistent positive returns underscore the stock’s strong performance and appeal to investors.
(Disclaimer: Views, recommendations, and opinions expressed are personal and do not reflect the official position or policy of Financial Express.com. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)
