Key Highlights

The volume for Mar 19 quarter de grew by 9.7% YoY to 10.3 B Units while for 12 months ended Mar 19, the volumes grew by 10% YoY to 62.5 B Units. The de growth in Mar 19 quarter was largely due to lower off take in Medium trade from Bhutan and lower short term volumes due to issues of finance. Around 2 B units of trade got affected due to both these issues.

Bangladesh saw an offtake of around 200 MW in Mar 19 quarter. The offtake will pick up further.

Short term volumes which accounted for 53% of total volumes in Mar 19 quarter, stood at 5.6 BU down by 18% YoY. Medium term volume stood at 0.4 BU and was down by 18% YoY. Long term volumes stood at 4.6 BU up by 3% in Mar 19 quarter and account for around 44% of total trade. Overall for FY 19, short term trades grew by 12% to 34.6 B units and accounted for 55% of total trade, Medium term was down by 12% to 1.9 B units and accounted for 3% of total trade and long term trades were up by 8% to 25.9 B units and accounted for 41% of total trade.

The margins in Mar 19 quarter before rebate and surcharge adjustments stood at 3.9 paisa as compared to 4.5 paisa for Mar 18 quarter.

The other income in FY 19 was lower due to lower dividend income from subsidiaries and lower surcharge income compared to FY 18.

Net working capital requirements of company remained high in FY 19 as recoveries from state governments are still not cleared. The recovery will be done post the elections which will result in significant improvement in working capital and cash flows and will lower down the interest costs.

No further equity investments into the subsidiary companies. Confident of making returns on the investments so far made in subsidiaries.

Consultancy income in FY 19 stood at Rs 5 crore. The segment has an order book of around Rs 117 crore.

1050 MW of wind PPA got commissioned in Mar 19 quarter. This is a long term PPA. Another 100 MW of long term PPA has already been operational with Rajasthan in Mar 19. Expects another supply of 400 MW of long term PPA for renewable project to commercialize by end of FY 20. Should give around 3-4 BU of trading volumes on long term basis.

Demand from Large industries is lower and this has also resulted in lower offtake both short term and long term. Trades will improve gradually from these industries in the coming year.

No further update on license to have own exchange. Its filed and the company is waiting for regulatory approvals.

The company is looking for a strategic investor in PTC Energy and expects to close the deal soon.

Once the confidence improves, people will enter for long term PPAs and hence margins will improve. Better availability of finance will result in higher short term trades as well.

Athena project which has been completely written off should see some recovery in terms of provision write backs in FY 20.

Overall expects volume growth of around 10% in FY 20. The growth will once again not be linear as H2 FY 20 will see higher demand compared to H1.

FY 20 will be a base year from which the momentum should pick up.