Analyst Meet / AGM - Analyst Meet
Expects volume growth of more than 30% in FY 2015
The company held its analyst meet on 29th May 2014 and was addressed by Mr. Deepak Amitabh Chairman
Key highlights
During Q4 FY'14, a total of 7656 MU of power volumes were traded by PTC India, which was up by 14% y.o.y. For entire FY'14, volume growth stood 23% to 35130 MU's. This comprises of about 21470 MU of short term trading, 12238 MU of long term, 1407 MU of Medium term.
For the month of April'14, the volume growth for the company stood at 30% YoY.
The company has received all its dues including surcharge from UP SEB and nothing is outstanding from there. However, about Rs 260 crore is still outstanding from TN SEB which is still not received by the company. Management is hoping to recover it in this calendar year. Also during the quarter, some partial surcharge was received from TN SEB and full surcharge from UP SEB.
Based on the long term PPA's that will come up, in 2016-17, management expects Long term power trading share to increase to about 50% from the current of around 34%. This will help in increase in margins, as in long term, margins are nearly double.
About 11GW of long term volume is what the company has firmly tied up with and is working on actively to convert them into power sale agreement. As on date about 7 GW of long term PSA have already been executed.
Average blended margins for the company works out to around 3.9-4 paisa per unit.
As per the management, tariff hike will come in once the new government gets start working. This will be positive for PTC and for power sector in general.
The company has cash of around Rs 550 crore as on Mar'14. Since the company is signing more and more PSA which are long term in nature, the working capital requirement of the company will also increase going forward.
Overall management expects more than 30% volume growth in FY'15 and expects net sales to double in about 3 years time frame.
Management expects healthy dividend policy to continue. Also management expects strong dividend income to continue from its subsidiary PFS.
Overall, with long term PPA's and PSA's getting firmed up, management is confident of a sustainable volume growth in future.
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