Torrent Power shares zoom 10% on robust Q3 earnings, dividend announcement

Torrent Power said that its board has approved an interim dividend of Rs 22 per equity share (including Rs 13 per equity share as a special dividend) for FY 2022-23.

Torrent Power has fixed Wednesday, February 22, 2023, as the record date for determining the eligibility for the payment of dividend - Image Source: Reuters

Shares of Torrent Power – a power generation, transmission, and distribution company – zoomed more than 10 per cent on Wednesday on strong third-quarter earnings.

The stock opened at Rs 494.40 apiece on NSE, up 8 per cent from previous close of Rs 457, responding positively to the strong Q3 numbers. The scrip traded firmly in green, quoting Rs 503 apiece on NSE round 3 PM, up by 10 per cent.

The company on Tuesday released its October-December quarter results. It posted a whopping 88 per cent growth in its consolidated net profit at Rs 694.54 crore on account of higher income, the company said in a regulatory filing. The company had clocked a net profit of Rs 369.45 crore in the October-December period of fiscal 2021-22.

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Its total income rose to Rs 6,526.44 crore in the quarter under review from Rs 3,833.14 crore in the year-ago period. Its total expenses also soared to Rs 5,549.01 crore, compared to Rs 3,324.02 crore earlier.

Torrent Power Dividend, Record Date

The company said that its board has approved an interim dividend of Rs 22 per equity share (including Rs 13 per equity share as a special dividend) for FY 2022-23.

“The Board at its meeting on Tuesday has approved interim dividend of Rs 22.00 per equity share, this is including Rs 13 per equity share as a special dividend,” the company said in the filing.

The company has fixed Wednesday, February 22, as the record date for determining the eligibility for the payment of dividend.

According to HDFC Securities, the power sector so far reported better earnings growth, owing to the strong generation growth and improved coal availability. The brokerage maintained an ‘add’ rating on Torrent Power for a price target of Rs 552.

Torrent Power shares have remained in a consolidation phase for the past one month, yielding a moderate return of 5.25 per cent to its investors. It has declined by 13 per cent in the last six months. The stock's 52-week range is Rs 610 - Rs 415.25.

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