Summary

  • Torrent Power is one of the leading brands in the Indian power sector, promoted by the Rs. 21500 Crore Torrent Group
  • Torrent Power has presence in power generation, transmission, distribution and manufacturing and supply of power cables.
  • The Company has an aggregate installed generation capacity of 3,879 MW comprising of 2,730 MW of gas-based capacity, 787 MW of renewable capacity and 362 MW of coal-based capacity.

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Company Overview

Torrent Power is one of the leading brands in the Indian power sector, promoted by the Rs. 21500 Crore Torrent Group – committed to its mission of transforming life by serving two of the most critical needs - healthcare and power. It is an integrated power utility and is one of the largest private sector players in India having interests in power generation, transmission, distribution and manufacturing and supply of power cables.1

Torrent Power foresaw the prospects in the power sector much before the liberalization, when it took-over and successfully turned around an ailing power cable company Mahendra Electricals, renaming it as ‘Torrent Cables Ltd.’ (now merged with Torrent Power Limited w.e.f. 1st April, 2014). The high points of Torrent’s foray into power however were the acquisitions of two of the India’s oldest utilities – The Surat Electricity Company Ltd and The Ahmedabad Electricity Company Ltd. Torrent turned them into first rate power utilities, in terms of operational efficiencies and reliability of power supply.

Torrent ranks amongst the best run power utilities in the country with highly efficient generation assets. It has a portfolio of coal based, gas based and renewable power plants with an aggregate generation capacity of 3879 MW. The gas based plants of the Company possess greater environmental value with state of the art technology and in-built efficiency enhancing design features.

The Company distributes power to over 3.65 million customers annually in its distribution areas of Ahmedabad, Gandhinagar, Surat and Dahej SEZ and Dholera SIR (Gujarat), in Bhiwandi, Shil, Mumbra and Kalwa (Maharashtra) and in Agra (Uttar Pradesh). The T&D loss in license areas of the Company is amongst the lowest in the country. The Company offers highly personalized and innovative customer services that incorporate various convenience features.

Torrent Power created history by entering into the country’s first distribution franchisee agreement with Maharashtra State Electricity Distribution Company Limited for Bhiwandi Circle in December 2006. In 2009 it was awarded the distribution franchise for Agra in Uttar Pradesh. The significant reduction in AT&C losses in both Bhiwandi and Agra is a testimony of Company’s operational efficiency. During FY 19 the Company was awarded distribution license for Dholera Special Investment Region (Gujarat) and distribution franchise for Shil, Mumbra & Kalwa (SMK) area (Maharashtra)

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Torrent Group

The Torrent Group, founded by Late Mr. U. N. Mehta in 1959 and currently lead by Mr. Sudhir Mehta and Mr. Samir Mehta, is a driving force dedicated to transforming life.

 It was four decades ago that Mr. U. N. Mehta embarked on a journey called Torrent for a simple cause and a unique sense of purpose - ‘Happiness for All’. A medical representative with an exemplary vision, he ventured out on his own by making niche marketing as his core competency. And the rest, as they say, is history.

 Torrent lives up to the literal meaning- ‘Rushing Stream’, especially in the way it conceives products and services, which transform life. Over the years, the Torrent Group has remained focused on Healthcare and Power - two crucial sectors without which modern life is unimaginable. The Torrent Group today is not just spreading care, hope and happiness across the world, it is also empowering the people and lighting up their lives.

Subsidiary

Name of Subsidiary CompanyExtent of shareholding (in percentage)
Torrent Power Grid Limited74.00%
Torrent Pipavav Generation Limited95.00%
Torrent Solargen Limited100.00%
Jodhpur Wind Farms Private Limited100.00%
Latur Renewable Private Limited100.00%
TCL Cables Private Limited100.00%
Torrent Saurya Urja 2 Private Limited100.00%
Torrent Saurya Urja 3 Private Limited100.00%
Torrent Solar Power Private Limited100.00%

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Business Segments

Torrent Power has presence in power generation, transmission, distribution and manufacturing and supply of power cables. Its highly efficient generation assets and equally reliable distribution network are amongst the best in the country. Through continuous technology upgradation and customer care initiatives, Torrent Power continues to deliver enhanced value. For the customers in its license areas, disruption in life due to power failures or outages is a rare phenomenon, thanks to its outstanding operational efficiency.2

Generation

The Company has an aggregate installed generation capacity of 3,879 MW comprising of 2,730 MW of gas-based capacity, 787 MW of renewable capacity and 362 MW of coal-based capacity. Further Renewable projects of 815 MW are under development, of which LOAs have been received and PPA has been executed for projects of 515 MW. With the acquisition of 50 MW Solar Power Plant, total generation capacity, including under development capacity, will be 4,744 MW with renewable capacity of 1,652 MW.

Transmission

Torrent Power operates 249 km and 105 km 400kV double circuit transmission lines implemented by it, for evacuating power generated at SUGEN and DGEN plant to various off-take centres.

Distribution

The Company distributes power to over 3.65 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh.

Cables

The Cables Unit manufactures Power & Control Cables and is one of the market leaders in HT Power Cable segment with a manufacturing capability of up to 132 kV XLPE Cables.

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Scheme of Arrangement

The Scheme of Arrangement between the Company and TCL Cables Pvt. Ltd., a wholly owned subsidiary of the Company, for transfer and vesting of its Cables Business Undertaking on a going concern basis, with effect from the appointed date being April 01, 2020, by way of slump sale for a cash consideration of Rs 256.95 Crore was approved by the National Company Law Tribunal (“NCLT”), Ahmedabad Bench vide its order dated December 17, 2020. The Scheme became operative w.e.f. January 15, 2021.

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Financial Highlights

Overall contribution from all businesses decreased from ₹ 5,375 Crore (FY 2019-20) to ₹ 5,043 (FY 2019-20) Crore i.e. decrease of ₹ 332 Crore (6%).

The Company’s liquidity, including mutual fund investments and deposits with banks/financial institution, was ₹ 1,159 Crore at the beginning of the year. Liquidity as at the end of the year was ₹ 917 Crore, a decrease of ₹ 242 Crore.

The long term debt of the Company at the year-end was ₹ 7,809 Crore, net decrease of ₹ 1,089 Crore over the previous year (new debt raised ₹ 900 Crore less repayment of debt ₹ 1,989 Crore).

Q1 FY 2021-22 results

August 6, 2021: Torrent Power Limited announced financial results for the quarter ended June 30, 2021.3

Total Comprehensive Income (TCI) for the quarter is lower by ₹ 159 Crs compared to Q1 of previous year. However, both the quarters were impacted by one-off items. The current quarter has a net one-off charge of ₹ 21 Crs and the comparative quarter in the previous year had a net one-off gain of ₹ 234 Crs. Adjusted for these, the TCI hasincreased from ₹ 134 Crs to ₹ 230 Crs, ie 72%.

The Company enjoys a strong balance sheet position with some of the best financial ratios amongst private players in the power sector with Debt : Equity ratio of 0.67 as at June 30, 2021 and Net Debt to EBITDA ratio of 1.98 as on March 31, 2021.

Recently, the Company entered into a Securities Purchase Agreement with a JV of Lightsource BP and UKCI to acquire a 50 MW solar power project at Maharashtra. Enterprise value estimated for the acquisition is approx ₹ 317 Crore subject to closing price adjustments. The Project has a remaining life of 22 years and has a PPA with SECI for supply of power at ₹ 4.43 per unit. The acquisition is subject to customary conditions for transaction closure.

References

  1. ^ https://www.torrentpower.com/index.php/site/info/aboutUs
  2. ^ https://www.torrentpower.com/index.php/site/info/businessAreas
  3. ^ https://www.torrentpower.com/pdf/investors/MediaRelease.pdf
Created by Asif Farooqui on 2021/09/27 18:40
     

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