Gujarat-based power generation company Torrent Power reported a slight decline in its revenue in the third quarter (Q3) of the financial year 2020 (FY 2020) to ₹29.53 (~$405.3 million) billion, down 4.3% from ₹30.79 (~$422.6 million) billion in the same quarter the previous year.

The company’s profit after tax also fell 24% to ₹3.21 billion (~$44.06 million) during the quarter ended December 31, 2020, from ₹4.21 billion (~$57.8 million) in the same period last of the last financial year.

However, the company’s profit before tax during the quarter stood at ₹3.99 billion (~$54.8 million), up 27% from ₹3.15 billion (~$43.2 million) in Q3 2019.

It attributed the rise in profit before tax to improvements in collection efficiency in franchised distribution businesses and increased contribution from renewable generation due to new capacity additions. It also said that the decrease in interest costs due to lower debt and a reduction in interest rates played a part in the increased profit before tax.

The company also reported a 3.5% rise in its earnings before interest, tax, depreciation, and amortization (EBITDA), which stood at ₹9.08 billion (~$124.6 million) during the quarter. In Q3 2019, the company posted an EBITDA of ₹8.77 billion (~$120.4 million).

Torrent said the economic revival after the lockdown period has led to an increase in electricity demand in the company’s distribution areas. It added that power demand was almost back at the levels seen in the same quarter of the last year in all its distribution areas.

It noted that the company was ready to participate in upcoming opportunities in the sector in renewable generation, transmission, and privatization of state-owned distribution circles.

Torrent Power’s revenue in the first nine months (9M) of FY 2020 also a decline of about 15% to ₹90.89 billion (~$1.25 billion) from ₹106.6 billion (~$1.5 billion) in the same period a year prior. Its EBITDA also slipped 7.3% to ₹26.6 billion (~$365.1 million) compared to ₹28.7 billion (~$393.9 million) in the previous financial year.

Earnings per share stood at ₹6.67 (~$0.092) at the end of Q3 2020, 23.5% lower than Q3 2019’s ₹8.73 (~$0.119). In 9M 2020, the company’s earnings per share stood at ₹18.6 (~$0.255). The board of directors approved an interim dividend of ₹5.5 (~$0.075) per equity share.

Recently, Mercom reported that Torrent Power emerged as the lowest bidder (L1), quoting a tariff of ₹2.47 (~$0.033)/kWh for 300 MW of project at the Kambadur Ultra Mega Solar Park located in Anantapuram district. The Andhra Pradesh Green Energy Corporation conducted the solar auction.

In December 2020, Torrent Power reissued a tender to purchase up to 300 MW of power from grid-connected solar projects in Gujarat. The tender was initially floated in January 2019 and reissued in August 2019 due to a tepid response.