PTC India

PTC India reported a robust consolidated performance for Q2 FY25, with Profit Before Tax (PBT) increasing by 12% to Rs. 306 crores from Rs. 272 crores in the prior year. Consolidated Profit After Tax (PAT) also saw a significant rise of 16% to Rs. 234 crores, up from Rs. 202 crores. This growth was primarily attributed to an increase in trading margins and higher surcharge income, alongside the non-charging of depreciation for PTC Energy Limited (PEL) assets classified as held for sale.

While consolidated results were strong, standalone Profit After Tax (PAT) for Q2 FY25 decreased by 13% to Rs. 117 crores, compared to Rs. 133 crores in Q2 FY24. This decline was explicitly attributed to the absence of a Rs. 41.75 crore dividend from a subsidiary, PFS, which was received in the corresponding quarter of the previous fiscal year. The subsidiary opted to reinvest its profits for business growth this year.

The company has signed a definitive agreement for the sale of PTC Energy Limited (PEL) with ONGC Green Limited. Management expressed confidence in the transaction, stating that they expect to close it by mid-December, pending the completion of certain condition precedents. The use of funds from this divestment will be decided by the Board at an appropriate time^⏳.

Management provided a positive update on the power supply to Bangladesh, noting that receivables have started decreasing and outstandings have substantially come down in the past month due to accelerated payments. As of the call date, there is no exposure to Bangladesh. Cross-border volumes, including Bangladesh, stood at 3,700 million units for Q2 FY25 and 4,700 million units for H1 FY25.

PTC India's exchange venture, HPX, showed mixed performance. While it is not performing strongly in the Day-Ahead Market (DAM), it continues to do well in other market segments. For Q2 FY25, HPX reported a revenue of Rs. 5.77 crores and a Profit Before Tax (PBT) of Rs. 80 lakhs, with Profit After Tax (PAT) around Rs. 1 crore. Management indicated that bringing significant volumes to the DAM segment on HPX remains challenging without policy announcements related to market coupling.

Management addressed shareholder concerns regarding the delayed divestment of PTC India Financial Services (PFS), stating that the decision was previously put on hold and the board would reconsider it after the PEL transaction. They also acknowledged that the non-adoption of accounts was due to advice from proxy advisory services and confirmed that they are actively addressing these issues, with approval from shareholders expected in 'a quarter or so.'

The company maintained its core trading margin at Rs. 3.60 per unit for Q2 FY25 and Rs. 3.55 per unit for the half-year. Management expressed optimism for the second half of the fiscal year, stating they 'do not see any headwinds' concerning H2 performance. They also assured shareholders that they 'will not disappoint' regarding future dividends, despite no interim dividend being declared, consistent with past practice.