Key takeaways of the call

Volume traded in Q4FY20 stood at 12002 million units (MUs), a growth of 13%yoy and for FY20 the volume was up by 6%yoy to 66332 million units (MUs).

Share of short-term trade in total volume traded for Q4FY20 and FY20 stood declined to 40.8% and 44% respectively from 52.8% and 55% in corresponding previous period. Balance is from medium and long term trade.

Long-term & Medium term trade lends stability in offtake. The company expects about 50-60% of total trade to come from long-term and medium-term trade going forward.

Sudden fall in demand for power during lockdown and the demand start recovering from unlockdown 1.0 from agriculture and manufacturing. For the company the last 11 days of March 2020 and April has seen fall in demand. In April 2020 the demand was subdued with a fall of 18-33% daily. Subsequently since relaxation of lockdown the demand came back well and become normal in June 2020 for the company.

Entire capacity of 1050 MW long-term wind was operationalized for trading.

The entire capacity under Pilot –I of 1900 MW has been operationalized with the operationalization of 550 MW of RKM Power.

PTC has won the aggregator bid for Pilot – II of 2500 MW (MoP flagship scheme for resolution of stressed thermal assets). Expect to finalise PPAs for all 2500 MW of Pilot II project soon. Discussion for finalisation of PPAs with potential customers got delayed due to COVID lockdown.

Open exposure as on March 31, 2020 was Rs 2451 crore of which Rs 600 crore from UP, Rs 370 crore from J&K, Rs 478 crore from Bihar, Rs 270 crore from Telengana, Rs 300 crore from Rajasthan, Rs 146 crore from TN, Rs 107 crore from Haryana and balance from other states. OF this the company received Rs 1100 crore including bill discounting.

Receivables more than six months is about Rs 393 crore and of which about Rs 300 crore is from J&K. J&K outstanding is due to division of J&K into two UTs.

Payment cycle will improve as most discom apply for GOI financial package through PFC& REC of about Rs 90000 crore in 2 tranches.

PTC Energy clocked a revenue of Rs 304 crore and a PBT of Rs 28 crore. The PAT of it for the fiscal was Rs 10 crore.

PTC is currently advising DMRC, Indian Railways to trade through power exchanges and is facilitating the scheduling of such power flows under LTOA and STOA.

In distribution related advisory business, PTC is serving AKVN (MP Govt. SEZ), Paradip Port Trust, Deen Dayal Upadhyay (Kandla) Port Trust, Mumbai Port Trust and JNPT with an estimated annual revenue of Rs 12 Crores.

Will not make any further investment in non-core business. The company is in the process of divesting its stake in two non-core investments i.e. PTC India Financial Services and PTC Energy.

Net Rebate and surcharge for Q4FY20 stood at Rs 30.67 crore and Rs 45.13 crore respectively compared to Rs 33.75 crore and Rs 32.01 crore.

Net Rebate and surcharge for FY20 stood at Rs 116.63 crore and Rs 159.52 crore respectively compared to Rs 106.61 crore and Rs 116.44 crore.

The margin (paisa/unit) excluding rebate & surcharge was stable at 3.65 (compared to 3.7) if Bangladesh trade is taken out.

Power Exchange will be operationalized once the approval in place. The final hearing is expected in couple of weeks.