Torrent Power plans to double our renewable generation capacity in the next 3 years, Lalit Malik, chief financial officer (CFO), told CNBC-TV18. Malik also discussed the earnings; equation between power demand and high gas and coal prices.
The company reported earnings for the September-ended quarter. The net profit is up over 80 percent and the margin has also expanded to around 26 percent.
“We acquired two businesses for 156 megawatts and 50 megawatts and that comes to around 206 megawatts. Currently, we are in the process of having another 850 megawatts. So the plan is to double in next three years to around 5 gigawatts of renewable generation capacity,” Malik said.
On fuel cost, he said, “The fluctuation has been temporary and volatile. However, things are getting stabilised. So we do expect that things will stabilise and not have that kind of fluctuation that we saw the last couple of months.”
He further said that the company is investing heavily in the distribution business.
Apart from renewable energy growth, the next growth area for the company is going to be distribution.
"We are focused as well as investing heavily into the distribution business and around Rs 1,500 crore is what we are planning to spend on distribution expansion,” said Malik.
For the entire management interview, watch the video