Key Highlights

Total volumes traded in Dec 17 quarter stood at 14.2 Billion Units (BU), up by 36% YoY. Total volumes for 9 months ended Dec 17 stood at 45.2 BU up by 18% YoY.

Short term volumes which accounted for 58% of total volumes in Dec 17 quarter, stood at 8.3 BU up by 58% YoY. Markets are recovering and management expects pick up in short term volumes going ahead. Within short term, bilateral OTC market has seen a sharp surge in the quarter.

Medium term volume stood at 0.5 BU and was down by 28% 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. Also volumes were lower from Bhutan due to surplus power in that market.

Long term volumes stood at 38% in Dec 17 quarter and grew by around 21%.

Consultancy service income is going to improve going forward. It stood at Rs 9 crore for 9 months ended Dec 17 as compared to Rs 5 crore YoY.

Margins for Dec 17 quarter stood at 3.7 paise as compared to 3.8 paise for Dec 16. Margin including forex fluctuation was at 4.2 paise as compared to 4.8 paise for 9 months ended Dec 16.

Power sector which had lot of stress for quite some time seeing some light at end of the tunnel. Uday scheme will benefit in medium term for sure.

Government is in constant effort to pull and create the demand side market which is struggling since FY 09. While supply side market continues to remain, demand side activity has started and power trading should improve from hereon as per the management.

Lower other income is due to lower yield on debt side of mutual fund investments.

Surcharge income for FY 19 will be lower than FY 18, as Tamil Nadu surcharge of around Rs 35 crore will be fully recovered in FY 18.

Cash as on Dec 17 stood at Rs 750 crore

Debtors on Dec 17 stood at Rs 3350 crore and creditors Rs 2500 crore

35 days average debtors collection which was 51 earlier.

Issues were involved in regulatory approval of PPAs both for Karnataka and Andhra for PTC Energy, now the PPA's got approval, and already payment has started being released by these regulators. More action on sale stake will be seen in FY 19 with better clarity on PPAs and way forward for PTC Energy.

PTC Energy reported Net sales of around Rs 200 crore and PAT of around Rs 57 crore for 6 months ended Sep 17. These are audited figures.

No capital infusion required in any subsidiary in near future.

Saw good increase in PPA's in UP in last month of Sep 17 quarter. Also around 176 MW was operational by end of Dec 17.

The company will sign 3 long term PPA of Teestha by Mar 18

The provisions on diminution in value of investments made by the company under total comprehensive income is more of format and guidelines of AS requirements, but otherwise management does not feel any further provisioning is required and hence not provided on any diminution in value of investments as per New Ind AS accounting.

Overall, volumes will see a consistent and gradual recovery as more and more long term gets commissioned. Uncertainty on short term is reducing which will help short term volumes to grow going forward.