Torrent Power Q4 Review - Distribution Business Normalises: Motilal Oswal
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Motilal Oswal Report
Torrent Power Ltd.’s result highlights the benefit of normalizing demand in its distribution franchise (DF) business, offset by lower renewable generation.
Reported Ebitda was up 11% YoY. While a fresh set of lockdowns could affect the performance of DFs, power demand and collections in DFs have not been significantly impacted thus far.
We expect the company’s DF business to improve over FY22–23.
However, with the recent run-up in the stock (up 45% in the last six months), this improvement is well baked in.
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