Key takeaways of the call

Volume traded in Q1FY21 stood at 18918million units (MUs), a fall of 2%yoy.

Share of short-term trade in total volume traded for Q1FY21 stood declined to 47% (from 49% in Q1FY20) and that of medium term and long term stood at 7% (down from 12% in Q1FY20) and 45% (up from 39% in Q1FY20). Long-term& Medium term trade lends stability in offtake.

Trading margin for Q1FY21 stood at 4.13 paisa/unit compared to 3.73 paisa per unit in Q1Fy20.

Good pick up of cross border trade in q1FY21 compared to previous year in Q1FY21. That has helped it to maintain the margin.

When the overall electricity demand fell by 15% for the quarter ended June 2020, PTC managed to close with just 2.3% fall in volume.

In April 2020, the traded volume of the company dropped more than the electricity demand of overall system. In subsequent months of the quarter, with opening up of the economy the traded volume picked up comparable to corresponding previous months.

Demand for traded electricity is not only depend on the overall demand for electricity in the system but also depend on the mismatch of demand and supply. Mismatches were very high in last two month of the quarter and that has given opportunity for electricity trading.

With Business and economy not fully return to normalcy the discoms find it difficult to maintain stable financials. Though REC & PFC funding help them to tide over the immediate liquidity concerns the operating metrics has to improve for sustainable stability in power sector.

During difficult times all stake holders of power sector were united joining hand to hand and now money has started to come into the system.

Effective long termavailability of liquidity to discoms is key for demand for traded electricity, so another quarter of watching is required before drawing a demand trend.

The entire capacity under Pilot –I of 1900 MW has been operationalized. As far as 2500 MW Pilot – II (MoP flagship scheme for resolution of stressed thermal assets) the suppliers and buyers were identified. The price discovery is also completed in Feb 2020. But before signing of PPAs, COVID virus intervened and delayed the things. Some of the states has given firm commitments and once the demand is back they will come back and sign the PPAs.

As end of June 30, 2020, the debtors were around Rs 9000 crore and the creditors were about Rs 7200 crore.

Subdued operational for the quarter was due to low wind availability during the quarter and lower offtake by AP Discom. OF the 288 MW about 188 MW is located in AP and due to weak industrial demand the offtake is poor from Southern States. However seeing better trend starting from this quarter.

As far as reduced tariff is concerned the two cases including the one at High Court another at Tribunal is on.

Revenue of PTC Energy in q1FY21 was about RS 77.83crore and the PAT was Rs 5.58 crore.

CERC has prima facie approved the proposal of the consortium of PTC, BSE, ICICI Bank to set up a power exchange and in its order by end of July it has asked the consortium to bring the share holding pattern. The consortium will approach the CERC by Sep end with the shareholding pattern as per existing rule for taking it forward. The company has invested Rs 12.5 crore in proposed Exchange venture. No further investment is required from the company in this venture.

Divestment of stake in PTC Financials: Bankers were appointed and got good response for request for EOI.

The company will not get into capital heavy business.

Initiatives of GOI as far as Infra is increasingly visible.

Of the national demand of 190 GW, the exchanges are catering to only about 8000-10000 MW at the moment.