Key takeaways of the call

Volume for Q1FY18 stood at 14.18 billion units, an increase of 16% compared to 12.22% growth in the corresponding previous period. Of the volume about 55% (or 7787 million units) is short term trade including that trade in power exchanges, 4% (or 622 million units) is medium term trade and 41% (or 5769 million units) is long term trades. While the shorter trade grew by 14%yoy in Q1FY18, the long-term trade was up by 24%. But the medium term trade was down by 14%.

Exchange credit volume in Q1FY18 5098 million units up from about 4664 million units in Q1FY17.

Margin per unit (Rs/Unit) in Q1FY18 was Rs 0.072 compared to 0.070 in corresponding previous period. The margin per unit without rebate and surcharge was Rs 0.044 in Q1FY18 compared to Rs 0.053 in the corresponding previous period.

Net rebate and net surcharge in Q1FY18 was higher at Rs 14.50 crore and Rs 24.56 crore respectively compared to Rs 14.29 crore and Rs 6.56 crore in the corresponding previous period.

Supply of entire quantum of 390 MW of power from TRN Energy started in the month of May to UPPCL on long term basis.

PTC has won the tender for managing the exchange portfolio for PSPCL (Punjab State Power Corporation Limited) for FY 2017-18.

PTC has executed agreements for supply of 400 MW wind power to the States of Bihar and Jharkhand under MNRE scheme.

Agreement for Cross Border Trade with Chukha HEP in Bhutan extended for further period; also extended agreement for cross border trade with Bangladesh

Under the MNRE and SECI scheme for conducting competitive bidding for procurement of 1000 MW power from wind power projects, PTC was selected as a trader. PTC has got the consent from State Discoms and Utilities for the entire quantum. The agreements will be signed in the first week of May in the presence of Hon'ble Minister. PTC was given a time of six months, however PTC completed the sale in 1 month time. PPA signed for this and the company sees this operational in next 17-18 months.

The average margin sustainable is about 4.4 paisa per unit. Short term margin continue to fluctuate. The company spends upto Rs 1.25 paisa per unit to earn this margin.

Consultancy income part of other operating income was Rs 4.31 crore in Q1FY18 up from Rs 1.29 crore in Q1FY17.

Other expenses comprise Rs 1.65 crore in consultancy expenses in proportion to consultancy income. There was also another Rs 1.25 crore unusual expenses towards divestment and advertisement etc.

Lower margin is largely due to lower margin of Bangladesh cross border trade, tolling and medium term trade. This together accounted for Rs 10 crore.

Bangladesh was originally a medium term and once that expired, and since then it is extended by six months pending finalization/formulation of cross border policy/guidelines. The current agreement is upto January 2018. The net margin when it was medium term contract was 9 paisa but now it is 4.9 paisa.

The company has no alarming outstanding debtors as of now. The debtors as end of June 30, 2017 was Rs 3600 crore. Cash as end of Q1FY18 was Rs 649 crore.

The company continues to focus on cross border. Trade continues with Bhutan and Bangladesh. Cross border guidelines has also come in recently.

Q4FY17 witnessed operationalisation of long term capacity of 240 MW. If a medium/long-term capacity operationalized that will give a boost to the top line.