Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PTC India Ltd (BOM:532524, Financial) reported a 13% increase in volume growth for Q2 FY25, reaching 24 billion units.
- Consolidated profit for the quarter grew by 16%, indicating strong financial performance.
- The company maintained a core margin of INR3.60 paise per unit for Q2, showcasing stable profitability.
- PTC India Ltd successfully signed a definitive agreement for the sale of PTC Energy Limited to ONGC Green Limited, expected to close soon.
- The company has managed to reduce receivables from Bangladesh, indicating improved cash flow management.
Negative Points
- Standalone profit for the quarter declined due to the absence of a dividend from a subsidiary, impacting overall profitability.
- Profit before tax on a standalone basis decreased by 6%, despite an increase in operational income.
- The company faced challenges in the smooth supply of power to Bangladesh due to changes in the local administration.
- Concerns were raised by proxy advisers leading to non-approval of accounts by shareholders, which the company is addressing.
- The divestment of PTC India Financial Services has been delayed, causing investor concerns about the company's strategic focus.
Q & A Highlights
Q: As a serious investor, I am concerned about the delay in divesting PTC India Financial Services. Is the company serious about this divestment?
A: Manoj Kumar Jhawar, Chairman and Managing Director, assured that the decision to divest PFS will be communicated to the market once finalized. The process was put on hold, but it will be reconsidered after the current transaction with PTC Energy Limited is completed.
Q: What is the timeline for the divestment of PTC Energy Limited (PEL), and what are the plans for the funds received from this transaction?
A: Manoj Kumar Jhawar stated that the transaction is expected to close by mid-next month, pending the completion of certain conditions. The strategic use of the funds will be decided by the board at an appropriate time.
Q: Can you provide a breakdown of the receivables, particularly concerning exposure to Bangladesh?
A: Pankaj Goel, CFO, explained that the total debtors for the half-year are INR 6,609 crore, with a net exposure of INR 2,400 crore after accounting for creditors. The exposure to Bangladesh has decreased significantly, with payments being accelerated recently.
Q: What are the international volumes for Q2, and how is HPX performing?
A: Pankaj Goel reported that cross-border volume, including Bangladesh, was 3,700 million units for Q2 and 4,700 million units for H1. HPX is performing well in segments other than the day-ahead market, but policy changes are needed to boost volumes in that area.
Q: Why was an interim dividend not declared despite good earnings in H1?
A: Manoj Kumar Jhawar clarified that the interim dividend was not declared due to subdued profit before tax this quarter, as no dividend was received from a subsidiary. Historically, PTC has not declared interim dividends, but they aim not to disappoint shareholders.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
