PTC India PAT up 63 percent
Our Corporate Bureau
18 July 2005
PTC India Ltd (formerly Power Trading Corporation of India Limited) declared 63 per cent higher profits at Rs11.31 crore in the present quarter of 2005-06 as against Rs6.96 crore reported in the corresponding quarter of the previous year. Total Income of the company stood at Rs443.97 crore down 10 per cent from Rs495.78 reported in the corresponding quarter. The volumes traded were down by 621 MU's to 1,523 MUs. The profit before depreciation, interest and tax (PBDIT) increased by 29 per cent at Rs14.85 crore as compared to Rs11.48 crore. The profit before tax was up by 30 per cent at Rs 13.86 crore.
The contribution margin from the company's operations at Rs11.04 crore was lower by 11.75 per cent as compared to Rs12.51 crore during the corresponding quarter of the previous year. This was in line with the sales revenue of Rs437.29 crore, lower by 11.54 per cent as compared to Rs494.33 crore for the corresponding quarter of the previous year.
The volumes during the quarter showed a continuation of the trend of lower marketable surpluses available with the states in eastern coastal region of India, where hydro availability continued to be constrained during the pre-monsoon months. Awarding of bids through tender processes by some of the utilities also meant that some of the volumes for the quarter were picked up by competition. While this trend is healthy for the industry in the long run, utilities' bid processes will also undergo refinements based on experience, and events during the quarter will be a significant platform.
PTC's other Income at Rs.6.68 crore in the quarter under review is about 3.5 times the Rs1.45 crore reported for the corresponding quarter of the previous year. The higher other income of the company was on account of the impact of maturity of some of the company's marketable investments in the longer-term tenor.
Reflecting on the performance, T N Thakur, chairman and managing director, PTC India, said, "We continue to move ahead in our focus areas related to the long-term segments of the business, and will be reaching significant agreement related milestones in this financial year. The developments in the short-term market for power are encouraging, as market participants are maturing in their buying and selling processes. It augurs well for businesses with long-term commitment to investment in people and processes for long-term sustenance in the industry."
During the quarter, PTC traded in total 1,523mu (million units) compared to 2144mu traded in the first quarter of the FY 2004-05. While volumes stood about 29 per cent lower compared to the corresponding quarter of the previous year, this was primarily on account of a continuation of the seasonal trends in availability of surpluses from hydro resources located in the states on the eastern coast. Towards the end of the quarter, as monsoon rains' impact started to show, volumes have grown. An encouraging feature of the volumes is the presence of `As and When' power available on day ahead basis, which contributed about 33 Million Units traded during the quarter, and where PTC commanded a near 100 per cent of the market presence.
