Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PTC India Ltd (BOM:532524, Financial) reported a 27% increase in operational income to INR187 crores from INR147 crores year-on-year.
- Profit before tax (PBT) increased by 20% to INR144 crores from INR120 crores.
- Earnings per share (EPS) for the quarter stood at INR3.59, up from INR3.03 in the corresponding quarter.
- The company achieved an 11% increase in core trading margin to INR3.5 per unit from INR3.14 per unit.
- Profit after tax (PAT) increased by 18% to INR106 crores from INR90 crores.
Negative Points
- Volume of 20.5 billion units was almost flat compared to the corresponding quarter's 20.6 billion units.
- The PEL deal has not yet concluded, causing uncertainty regarding the expected dividend distribution.
- Receivables from Jammu and Kashmir remain a concern, despite efforts to manage them.
- The shift from bilateral trading to exchanges is causing lower margins in the short-term market.
- The company faces challenges in growing power volumes despite robust power demand.
Q & A Highlights
Q: When will the PEL transaction be completed, and what is the expected dividend amount?
A: We are still working on the conclusion of the deal. Regarding the dividend, it will be discussed with stakeholders and the Board, and an announcement will be made in the future. - Manoj Kumar Jhawar, Chairman and Managing Director
Q: Could you share the volume numbers and financial details for HPX for the quarter?
A: The contribution of HPX has grown from INR56 lakhs in the previous year to INR1.37 crores. Revenue from operations increased from INR8.43 crores to INR11.75 crores, and profit after tax increased from INR248 crores to INR6.05 crores. - Pankaj Goel, Chief Financial Officer
Q: What is your outlook for volume growth in FY25, and why is the volume growth muted despite robust power demand?
A: We are focusing on maintaining healthy margins rather than chasing volumes at the cost of margins. We are exploring opportunities in international trade and renewable energy to grow volumes. - Manoj Kumar Jhawar, Chairman and Managing Director
Q: Why is the growth in the bilateral market flat year-on-year, and what is the threat to volumes due to long-duration contracts in power exchanges?
A: The market is migrating towards exchanges due to lower prices in the spot market. The introduction of long-duration contracts in exchanges may further shift volumes from bilateral markets. - Manoj Kumar Jhawar, Chairman and Managing Director
Q: What are the margins in short-term, bilateral, and long-term trades?
A: In the quarter ended June '24, margins were INR0.69 per unit for exchanges, INR2.33 per unit for bilateral trade, and INR7.87 per unit for long-term trade. - Pankaj Goel, Chief Financial Officer
Q: What is the status of the Sebi probe, and when will a full-time CMD be appointed?
A: The Board is handling the CMD appointment process. Regarding the Sebi probe, no specific updates were provided. - Manoj Kumar Jhawar, Chairman and Managing Director
Q: What is the impact of the Bangladesh situation on volumes?
A: We do not expect any impact as Bangladesh is a power-deficit country and needs power. We are in continuous touch with them. - Manoj Kumar Jhawar, Chairman and Managing Director
Q: What is the outlook for market coupling and its impact on PTC India?
A: Market coupling would affect exchanges more than PTC. PTC would likely consolidate its position and not be adversely affected. - Manoj Kumar Jhawar, Chairman and Managing Director
Q: What are the financials of HPX for FY24?
A: Revenue from operations was INR36 crores, and profit after tax was INR14.94 crores for FY24. - Pankaj Goel, Chief Financial Officer
Q: What are the volumes and margins in cross-border trades for Q1 FY25?
A: The margin in cross-border trades is around INR6.79 per unit, with a volume of 542 million units for Q1 FY25. - Pankaj Goel, Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
