Key Highlights

Total volumes traded in Mar 17 quarter stood at 10.1 Billion Units (BU), up by 3.1% YoY.

Short term volumes which accounted for 58% of total volumes in Mar 17 quarter, stood at 5.8 BU up by 1.3% YoY. Demonetisation had its impact in Jan and early Feb months which affected the volumes. Things have improved substantially from Mar 17 onwards.

Medium term volume stood at 0.6 BU and was down by 4% YoY. The contract with Bangladesh got completed in Dec'16 and got extended from mid Feb onwards till July 17. Thus, lower volumes from this contract affected the overall volumes in this segment.

Long term volumes stood at 36% in Mar'17 quarter and grew by around 7.5%. During the quarter, 445 MW of new long term capacity got started.

Overall for FY 17, total volume traded stood at around 48.32 BU and grew by 14% YoY. Volume growth could have been better but for demonetisation, some spill over of contracts and lower industrial side demand for short term.

Overall, for FY 17, short term trades stood at 53% and grew by 10% YoY, long term trades stood at 41% and grew by 20% while Medium term trades stood at 6% of total trade and grew by 5% YoY.

Testa Urja long term PPA project of 1200 MW will be operational in FY 18. Overall in FY 18, around 2000 MW of long term volumes are expected to be operational.

The company is gradually shifting from dependency on short term trades to long term and thus reducing the volatility which was seen in the past.

Trading of renewable energy particularly on wind side has also started in FY 17 and is progressing well. Looking at new PPAs and capacities that are aimed at in renewable energy, this segment will be a sizable segment in long term.

Uday scheme should see its true benefits from H2 FY 18 onwards, as FY 17 was more of doubts and uncertainties. Things are gradually stabilizing and the scheme should see its results from FY 18 onwards.

As per the management, no more provisions of any diminution in investments are required at this stage.