Analyst Meet / AGM - Analyst Meet

24-Nov-2014, 11:42
The company held its analyst meet on 21^st Nov 2014 and was addressed by Mr. Deepak Amitabh Chairman

Key highlights

During Q2 FY'15, a total of 12724 MU of power volumes were traded by PTC India, which was up by 18% y.o.y.

The company has started supplying its first ever cross border sale of power to Nepal. A supply of about 35 MW of power on short term basis has started to Nepal from Sep'14 onwards. Management expects lots of cross border flows to happen in next 3 years with neighbors like Bangladesh and Bhutan.

The company is on track to make sure that its long term trading share to increase to about 50% from current level of around 35% for Q2 FY'15 in next couple of years. This will increase the overall margins as margins in long term PPA's are higher compared to short term.

About 1.4 GW of long term capacity will be added in 2014-15 and another about 3.5 GW is expected in FY 2015-16. As per the management, all these capacities are more or less on track but there can be a delay for about 5 to 6 months.

The company has cash of around Rs 500 crore deployed at pre tax yields of around 9%.

TNSEB position is status quo. Court Arbitration procedure is going on. Management expects by the end of 2014-15, entire money of about Rs 260 crore should come back to the company.

The company has received some surcharge income of Rs 18 crore from TNSEB and some surcharge income from states of Andhra Pradesh and Tehlengana as due to elections in May'14, there were some increase in receivables which got accrued. The debtors position has come down from peak of about Rs 2900 crore in June'14 to around Rs 2500 crore as on Sep'14. Management is confident that no situation like that of TNSEB will be repeated and management continues to be watchful.

Overall management is confident of more than 15% volume growth of power trading for the next couple of years. Margins are going to be better with higher share of long term trading.

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