Key Highlights

The volume for Dec 18 quarter de grew by 9% YoY while for 9 months ended Dec 18, the volumes grew by 15% YoY.

Unavailability of finance from NBFC, lower off take in Medium trade from Bhutan and lower demand, all affected the volumes in Dec 18 quarter. Bhutan cross border was less in Dec 18 quarter due to lower demand in Bhutan.

Bangladesh saw an offtake of around 200 MW started from Nov onwards. The offtake will pick up further.

Short term volumes which accounted for 53% of total volumes in Dec 18 quarter, stood at 6.9 BU down by 17% YoY. Medium term volume stood at 0.3 BU and was down by 18% YoY. Long term volumes stood at 5.6 BU up by 4% in Dec 18 quarter and account for around 38% of total trade.

The margins in Dec 18 quarter before rebate and surcharge adjustments stood at 4.1 paisa as compared to 4.2 paisa for Dec 17 quarter while post adjustments of rebate and surcharge income, margins stood at 8 paisa as compared to 7 paisa in Dec 17 quarter.

The other income in Dec 18 quarter was lower due to lower dividend income from subsidiaries.

Net working capital requirements of company stands at Rs 1697 crore as compared to Rs 1870 crore in Sep 18 quarter.

Bihar and J&K dues received in Dec 18 which were there in Sep 18 quarter. Still around Rs 500 crore outstanding from J&K is resulting in higher borrowings. Confident of further improvement in working capital and cash flows.

Receivables due beyond 180 days stands at Rs 25 crore.

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

Consultancy income in Dec 18 stood at Rs 2.41 crore.

26% of PLF in wind energy

The 2.5 GW of stressed assets will be tendered out by month end

1050 MW of wind PPA by 31 Mar 19 is the contract to be commissioned on time. This is a long term PPA

Expects another supply of 400 MW of long term PPA for renewable project to commercialize by end of FY 19. Should give around 2.25 BU of trading volumes on long term basis.

Around 27-28% of total volume will be transacted on IEX exchange currently. The company has filed petition for license to have own exchange.

The company is looking for a strategic investor in PTC Energy and soon the deal will get closed.

Once the confidence improves, people will enter for long term PPAs and hence margins will improve.

Over the years, the company has witnessed lot of challenges and has come out stronger. Expects the current state to also pass and will emerge stronger.

Athena project which was worth Rs 150 crore has seen written offs to the extent of Rs 141 crore. Expects recovery and provisions written back in next year, as things stabilize.