BackCostly power buy pulls down Torrent Power’s net profit by 46%
Buying costly power on short-term basis resulted in an additional impact to the tune of about ₹145 cr
Premium(Indranil Bhoumik/Mint)
Ahmedabad: Torrent Power Ltd, power utility of Ahmedabad based Torrent group, saw a 46.23% decline in its net profit of ₹ 164.37 crore in the quarter ending 30 Spetember from a net profit of ₹ 307.97 in the year-ago period.
The company, which is both into power generation and distribution business, attributed the loss to lower supply of domestic gas that forced it to purchase costly power on a short-term basis to meet its requirements. This resulted in an additional impact to the tune of about ₹ 145 crore.
The Q2 2012-13 consolidated income from operations stood at ₹ 2,209.58 crore, up 10.29% from ₹ 2,003.47 crore in the year-ago period.
“The fall in domestic gas supply, particularly from KG-D6 basin has impacted the plant load factor (PLF) at the company’s Sugen mega power plant in Surat," Torrent Power said in a media statement on Saturday. “Hence, the company’s PLF has reduced from 85.48% in Q2 2011-12 to 49.20% in Q2 2012-13," it added.
The reduced supply of power from Sugen plant to the company’s regulated distribution areas in Ahmedabad and Surat necessitated the purchase of short-term power at higher price, according to the statement.
Torrent Power generates 1,697MW power and distributes nearly 15 billion units to more than 2.67 million customers in the cities of Ahmedabad, Gandhinagar and Surat in Gujarat, Bhiwandi in Maharashtra and Agra in Uttar Pradesh.
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