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 10309 MU of power volumes were traded by PTC India, which was up by 22% y.o.y. This comprises of about 6480 MU of short term trading, 3425MU of long term, 400 MU of Medium term.
Management expects lots of cross border flows to happen in next 3 years with neighbors like Bangladesh and Bhutan. During June'14 quarter, the company won first ever Cross border competitive bidding of 118 MW of hydro power plant in Bhutan. The PPA's will be entered by month end.
Also during the quarter, LOI of 200 MW from State Utility to meet their power purchasing obligations in renewable space was signed by the company.
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 PPA, margins are nearly double.
Management expects Retail segment to participate in a significant way once more regulatory clearance happens. Retail segment started by the end of FY 2014, through open access way today has customers such as Indian Railways, Delhi Metro rail corporation, ACC cements, Coco Cola, Sail RINL, BHEL etc and more are trying to get access to power trading directly as a retail customer. PTC India will have lot of opportunities to grow in retail segment
The company has cash of around Rs 450 crore pre tax yields of around 9%.
Of the total 11000 MW of the power which will come up in next 3 years, the company has signed PPA's back to back sale of around 7000 MW and management expects the rest to be signed as the time moves on.
There was a Rs 5 crore of forex gain in Q1 FY 2015 vis a vis of about Rs 0.12 crore forex gain in Q1 FY 2014.
TNSEB position is status quo. Court Arbitration procedure is going on. Management expects by the end of 2014 calendar year, entire money of about Rs 260 crore should come back to the company.
Current debtors position is around Rs 2900 crore. For some time due to the issues of Tehlengana and Andhra Pradesh, their monthly receivables had shot up but now things are getting under control. So is the issues with Madhya Pradesh which had 2 elections last year and then things stabilize. Overall 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 30% volume growth of power trading in FY 2015.
Powered by Capital Market - Live News