Torrent Power has seen a slight increase in its overall power distribution losses in Q1FY25.
According to an investor presentation discussing the company’s performance in Q1FY25, Torrent Power witnessed higher distribution losses across all its licensed areas. However, in the franchised areas, the performance was mixed.
As can be seen in the given table, distribution losses in all the operational licensed areas – Ahmedabad & Gandhinagar, Surat, Dahej and DNH&DD (Dadra Nagar Haveli and Daman & Diu) were higher in Q1FY25 when compared with those in Q1FY24.
In the franchised areas, year-on-year losses were higher in the Bhiwandi area, while the two other areas – Agra and SMK – enjoyed lower losses.
As per calculations made by T&D India, Torrent Power’s overall distribution losses, weighted by electricity purchase, stood at 7.47 per cent in Q1FY25 as against 6.97 per cent in Q1FY24. This includes both licensed and franchised areas.
According to views expressed by the management during an investor call, despite the higher distribution losses, revenues from the power distribution business improved in Q1FY25 due to higher electricity purchase.
During Q1FY25, combined electricity purchase across Torrent Power’s licensed and franchised area stood at 8,912 MU, up 6.2 per cent over 8,391 MU in Q1FY24.
In the Ahmedabad & Gandhinagar licensed area – Torrent Power’s biggest distribution area in Q1FY25 — electricity purchase rose by 10.2 per cent but losses widened to 9.93 per cent from 9.20 per cent in Q1FY24.
Transmission business
As already reported by T&D India, Torrent Power debuted in the power transmission development space by winning an interstate transmission system (ISTS) scheme “Solapur Transmission Ltd” under the tariff-based competitive bidding (TBCB) route.
In FY23, Torrent Power Grid Ltd (TPGL) won an ISTS scheme under the regulated tariff mechanism (RTM). This project consists of laying a 400kV double-circuit line of 60 km and bay upgradation works in Gujarat. The scheme, associated with evacuation infrastructure of the Khavda RE Park, is expected to commission by FY26. The project is estimated to cost Rs.800 crore and is expected to provide 15 per cent return on equity. TPGL is a joint venture between Torrent Power (equity: 74 per cent) and PGCIL (26 per cent). The JV was formed to build and operate the evacuation system associated with Torrent Power’s 1,100-MW Sugen power plant in Gujarat, and is in operation since 2011. TPGL has a total transmission network consisting of 354 km of 400kV and 128 km of 220kV lines.
Featured photograph (source: Torrent Power) shows a transformer in Agra where the company is a distribution franchisee.
