Q4 consolidated net loss at ₹487 crore following impairment loss from DGEN power project

The board of directors of Torrent Power Ltd on Tuesday granted an approval for issuance of ₹2,000-crore non-convertible debentures (NCDs).

After the meeting held on Tuesday, the company informed that the board of directors approved the “issuance of non-convertible debentures up to ₹2,000 crore in one or more tranches by way of private placement, subject to approval of the members in the ensuing Annual General Meeting (AGM) of the company.” The company on Tuesday reported its quarterly and annual financial results.

On consolidated basis, Torrent Power posted net loss of ₹487 crore for the quarter ended March 31, 2022. The company had posted net profit of ₹398 crore in the corresponding quarter a year ago. However, during the quarter, the company considered ₹1,300-crore impairment loss pertaining to the company’s 1,200-megawatt DGEN mega power project located at Dahej, Gujarat (DGEN).

DGEN started commercial operations from November 2014 and thereafter has operated only intermittently/partially due to various factors such as unavailability of domestic gas, high prices of imported gas and non-availability of power selling arrangement.

“Based on the assessment, recoverable value of Property, Plant & Equipment (PPE) as on March 31, 2022, by using value-in-use is ₹1,378.90 crore, which is lower than the carrying amount of PPE of around ₹2,678.90 crore and accordingly additional impairment loss of ₹1,300 crore has been provided,” it said, referring to the exceptional items in the balance sheet.

Financial performance

Consolidated revenues from operations for the quarter stood at ₹3,744 crore, as against ₹3,084 crore in the same quarter last year.

For 2021-22, the company’s consolidated net profit stood at ₹459 crore as against net profit of ₹1,296 crore last year. Revenues from operations stood at ₹14,258 crore for the year under review as against ₹12,173 crore last year.

Consolidated EBIDTA for FY22 is higher at ₹3,826 crore as against ₹3,607 crore for FY21, the company informed in a statement.

“However, the total comprehensive income for FY22 is lower due to DGEN impairment charge of ₹928 crore (net of deferred tax reversal) during the year. Adjusted for net DGEN Impairment charge of ₹928 crore, adjusted total comprehensive income for FY22 is higher at ₹1,389 crore compared to ₹1,300 crore for FY21,” it added.

The company’s net debt-to-equity ratio stood at 0.80 as on March 31, 2022, and net debt-to-EBITDA ratio at 2.24.

Dividend announced

Samir Mehta, Chairman, Torrent Power, said, “During the year, the company continued to focus its growth initiatives in the identified growth engines of distribution and renewables. In line with this strategy, the company took over the operations as distribution licensee of Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD) from April 1, 2022, post-acquisition of 51 per cent equity share capital of the company.”

The company had announced an Interim dividend for FY 2021-22 of ₹9 per equity share, which was paid in March 2022. In view of the same, the board has not considered any further dividends for FY2022-23, Torrent Power said.

The company’s shares ended at ₹468.80, down 3.7 per cent on the BSE Tuesday.

Published on May 10, 2022