Torrent Power, an Indian energy company owned by the Torrent Group, reported a second consecutive decline in quarterly profits. This decrease is attributed to rising fuel costs, reported Reuters. 

The company’s consolidated net profit for the January-March quarter fell 4.2% to Rs 4.3 billion (approximately $51.7 million) compared to Rs 4.49 billion during the same period last year. Even though revenue from operations increased by 8.1% to Rs 65.29 billion, total expenses surged nearly 10% to Rs 60.08 billion, primarily driven by higher fuel costs.

India’s electricity generation has been growing at an impressive rate of around 8% annually since the pandemic year (2020/21), outpacing power demand growth in all major global economies. This surge is attributed to factors like scorching heat waves and a rebound in economic activity.

Despite the current profit dip, Torrent Power’s Chairman, Samir Mehta, remains optimistic about the future. He believes that power demand will continue to be strong in India, the world’s fastest-growing major economy. The company is well-positioned to meet this demand with a total generation capacity of 4,328 MWp, including gas-based (2,730 MW), renewable (1,236 MWp), and coal-based (362 MW) capacities.