PTC India Limited Summary of Financial Performance for Q1, FY 2005-06.
New Delhi July 15, 2005
Performance Highlights
- Profit After Tax higher by 63% at Rs. 11.31 Crores.
- Profit Before Tax higher by 30% at Rs.13.86 Crores
- Income from Operations for the quarter at Rs. 437.29 Crores.
- Trading volume at 1,523 Million Units.
- Leads in revival of `Day-Ahead market after enabling changes in Open Access regulation.
- Signs MOUs for long-term purchase and sale of power for 1500 MW during the quarter, taking aggregate level to MOUs for 15425.5 MW for purchase and sale of power.
- Signs PPA and PSA for first phase of the LANCO Amarkantak TPP located in Chattisgarh, for a 300 MW generation capacity for a period of twenty five years.
- Also signs MOU for sale of 150 MW power from the 250 MW KVK Nilanchal Power Project with Kerala SEB on long-term basis.
- Advisory Services Division takes off, does business of close to Rs. 10 Lacs during the quarter, matching revenue level for the entire FY05.
PTC India Limited (formerly Power Trading Corporation of India Limited) today announced its results for Q1FY2005-06.
Companys statement
Performance during the quarter is in line with the trends of the previous year. The trend of the previous year affecting availability of marketable surplus continued during the quarter. The Company continues to maintain its leadership position in the market for traded power in challenging business conditions. Developments during the quarter are encouraging as the short-term market is showing signs of maturity in terms of understanding the competitive environment. Rules of the game are getting established with progressive changes in regulation. There is also clear evidence of stakeholders reaching a critical level of appreciation of the model for development of new generation capacity on the strength of a purchase agreement with PTC. Utilities are also increasingly focusing on addition to their long term supply options through this model.
Q1 FY2006 v/s Q1 FY2005
The Profit After Tax increased by 63% to Rs.11.31 crores in the present quarter as against Rs.6.96 crores reported in the corresponding quarter of the previous year. The Total Income was at Rs. 443.97 crores down 10% from Rs. 495.78 reported in the corresponding quarter. The volumes traded were down by 621 MUs to 1,523 MUs. The Profit before depreciation, interest and tax (PBDIT) increased by 29% at Rs. 14.85 crores as compared to Rs 11.48 Crore. The Profit Before Tax was up by 30% to Rs. 13.86 crores.
The contribution margin from the Companys operations at Rs.11.04 Cr. is lower by 11.75% as compared to Rs.12.51 Cr. during the corresponding quarter of the previous year. This is in line with the sales revenue of Rs.437.29 Cr., lower by 11.54% as compared to Rs.494.33 Cr. 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.
Other Income at Rs.6.68 Cr. is about 3.5 times the figure of Rs.1.45 Cr. reported for the corresponding quarter of the previous year. The higher other income is on account of the impact of maturity of some of the companys marketable investments in the longer-term tenor.
Reflecting on the performance, Mr. 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 has traded in total 1,523 MUs compared to 2144 MUs traded in the first quarter of the FY 2004-05. While volumes are about 29% 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% of the market presence. Day ahead power contributed nearly 7% of the volumes transacted by the company during the month of May 2005.
During the quarter, PTC has entered into long-term MOUs for a total of 1500 MW, relating to the 1000 MW coal based thermal power project of Texas Power Generation L.L.C. and the 500 MW power project of Dheeru Powergen Private Ltd. in Chattisgarh. With these, PTC has signed MOUs for power purchase with projects for an aggregate capacity of 15,425.5 MW. Detailed Power Purchase agreements have been signed for 2405.8 MW.
Agreements for onsale of these projects capacity on a long-term basis, in the form of MOUs / PSAs have been signed for a total of 1059.5 MW. The most significant of these milestones is the signing of PSA for the first phase of LANCO Amarkantak project (300 MW) with MPEB for a period of 25 years, during the quarter. An MOU for onsale of 150 MW of capacity from KVK Nilanchal Power Project on a long term basis (25 years) was also signed with Kerala SEB during the quarter.
PTC had earlier also picked up an 11% stake in the 300 MW Lanco Amarkantak project in Chhattisgarh, in line with its decision to take limited equity stakes in generation projects, where the Company is already in long-term Power Purchase Agreements, to facilitate their financial closure.
PTCs advisory services, which made a modest beginning during the previous year with a revenue of Rs. 10 Lacs during the year, gained momentum with a billing of Rs.10 Lacs during the quarter. The key opportunities addressed by the advisory unit are in the frontier areas of distribution and in tariff formulation and analysis for IPPs.
About PTC
PTC India Ltd. (formerly known as Power Trading Corporation of India Ltd.) is a pioneer in starting a power market in India. The company was born out of the need for an institution, which would provide credit risk mitigation to private power project developers and providing best value to both the buyers and sellers while ensuring optimum utilization of resources.
The trading activities undertaken by PTC include long term trading of power generated from large power projects as well as short term trading arising as a result of supply and demand mismatches, which inevitably arise in various regions of the country.
PTC is a unique example of a Government of India initiative for a Company which is emerging as a highly successful public-private partnership with major PSUs of the Union Power Ministry as promoters and wide ownership interest. PTC is a professionally managed company with a diversified board of directors including eminent people as independent directors.
PTC intends to maintain its leadership position in power trading while at the same time adhering to its core value of transparency and customer needs focus.
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