19 May 2020 Torrent Powers (TPW) 4QFY20 results highlight the improved performance of its distribution businesses (franchise and licensed) along with some benefit of merchant sales. EBITDA improved 17% YoY to INR8.3b. TPWs distribution business may get impacted due to lower volumes owing to the COVID-19 pandemic. However, a healthy balance sheet should help it to tide over this wave. TPWs 4QFY20 EBITDA rose 17% YoY to INR8.3b (v/s est. INR7.4b) amid lower T&D; losses and some merchant volumes. This was partly offset by the impact of new CERC norms on Sugen. The beat to our estimates was largely led by (1) improved performance of its distribution businesses (both franchise and licensed) amid lower T&D; losses, and (2) some merchant volumes. In addition, the company made a provision of (1) INR0.5b for possible cancellation of its SECI-V project, and (2) INR0.5b for bad debts adj.