Torrent Power Management held a conference call with analysts on the business impact of Covid-19 lockdowns on the company, and potential impact on quarterly results. Listen in to the full call transcript here.
Key Highlights
- Part of the essential business category so Torrent Power is open and fully operational
- Challenges have started emerging with dues being deferred to 15th May, impacting collections. On the other hand, operations have to continue uninterrupted.
- We have sufficient liquidity to continue operations uninterrupted till end of June. We have also taken advantage of RBI moratorium for term loans.
- Gas based, coal based and renewables based generations: Financial performance of gas based plans will not be affected. We will see benefits of additional megawatts added, in Q1.
- Discoms are seeing large drop in demand during lockdowns. Current estimate for Q1 is that our PLF (Plant Load Factor) will fall by 10%.
- The negative impact of PLF will be in fuel gain incentives - incentives we earn will be lower due to lower volumes. Our OLM costs are likely to be lower also, which provides some offset.
Listen to the full call here.
