In a major management rejig that brings in the next generation to helm affairs at Ahmedabad-based Torrent Power Ltd., Chairman Sudhir Mehta's son Jinal Mehta's appointment as managing director was approved by the Board of Directors of the company.
The Board on Wednesday also accepted Sudhir Mehta's desire to relinquish his position as Executive Chairman, in turn requesting him to accept the position of Chairman Emeritus.
The company's Board also approved the appointment of Sudhir Mehta's brother Samir Mehta as Chairman of Torrent Power Limited for a period of five years with effect from April 1, 2018 subject to shareholders' approval in the Annual General Meeting (AGM).
In the past, Torrent Group's two major businesses - power and pharma - had been divided between brothers Sudhir Mehta (63) and Samir Mehta (54). However, the group has now begun a management rejig that will eventually see the next generation helming affairs at these businesses in near future.
Armed with an MBA in international business and finance from University of Technology Sydney, Australia, Jinal Mehta, 35, already has over a decade experience in both power generation and distribution segments. Earlier, Mehta had supervised the project implementation of the 1200 Mw DGEN Mega Power Project at Dahej near Bharuch, apart from being instrumental in turning around operations in Ahmedabad and Surat distribution areas.
The announcement came at a time when Torrent Power almost doubled its consolidated net profit for the third quarter ended December 31, 2017 to close at Rs 2.0598 billion, up from Rs 1.0714 billion for the corresponding period in previous fiscal. The company's consolidated total income grew by 17.67 per cent to stand at Rs 27.9894 billion in Q3 of fiscal 2017-18, as against Rs 23.7851 billion in Q3 of fiscal 2016-17.
On a standalone basis, Torrent Power's net profit grew by 89.60 per cent at Rs 2.0123 for the third quarter ended December 31, 2017 as against Rs 1.0613 billion for the said period last year. Consolidated total income of Torrent Power, on the other hand, rose by 17.70 per cent at Rs 27.8471 billion, up from Rs 23.6579 in the respective periods.
According to the company, Torrent Power's improved financial performance in Q3 of FY 2017-18 came on the back of reduction in interest rate of long-term borrowings, higher contribution from regulated distribution business as well as improvement in AT&C loss of distribution franchisee business.