Torrent Power’s shares soared by more than 7% during early trading on Wednesday after the company reported a robust 33% year-on-year (YoY) increase in its net profit for the third quarter of the fiscal year 2024-2025 (Q3 FY25). The company posted a net profit of ₹490 crore, up from ₹369 crore in the same period last year, driven by strong operational performance and improved contributions from its power plants.
Key Financial Highlights
- Revenue Growth: Torrent Power reported revenues of ₹6,499 crore in Q3 FY25, marking a 2% increase compared to ₹6,366 crore in Q3 FY24. For the first nine months of the fiscal year, the company’s revenues reached ₹22,709 crore, a 10% rise from ₹20,655 crore in the previous year.
- EBITDA Performance: The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a 17% YoY jump to ₹1,284 crore in Q3 FY25, up from ₹1,098 crore in the same period last year. Year-to-date EBITDA was ₹4,550 crore, reflecting a 23% increase.
- Total Comprehensive Income: For the nine months ending December 2024, Torrent Power’s total comprehensive income was ₹1,974 crore, a 38% increase from ₹1,434 crore during the same period in the previous year.
Dividend Announcement
Torrent Power’s board has declared an interim dividend of ₹14 per share (140%) on its 50.39 crore equity shares of ₹10 each. The dividend will be paid on or before March 6, 2025, to shareholders whose names are recorded as of February 12, 2025.
Market Reaction and Stock Performance
Following the announcement of its strong financial results, Torrent Power’s stock surged by 7.4% to an intraday high of ₹1,451.40 on the BSE. However, by the end of the trading session, the stock experienced some profit booking and closed slightly in the red.
Reasons Behind the Impressive Performance
Analysts attributed the company’s strong profit growth to increased contributions from its gas-based power plants and gains from the sale of non-current investments. Torrent Power’s focus on operational efficiency, cost control, and expansion of its generation capacity also contributed to its strong financial performance.
Company Overview
Torrent Power, a major player in India’s power sector, operates across the entire power value chain, including generation, transmission, and distribution. The company, which is part of the ₹41,000 crore Torrent Group, has a market capitalization of ₹27,183 crore and continues to invest in projects aimed at driving long-term growth.
Future Outlook
With its strong financial foundation, Torrent Power is expected to continue its upward trajectory, supported by strategic investments in renewable energy and infrastructure upgrades. Analysts remain optimistic about the company’s ability to deliver consistent growth in the coming quarters.
