PTC India Limited Q4 FY23 Earnings Conference Call Insights

Key highlights from PTC India Limited (PTC) Q4 FY23 Earnings Concall

Q&A Highlights:

• [00:14:12] Mohit Kumra at Kumra Investment asked about the investment in HPX, its progress, market share from IEX, future plans and the limitations of being a 25% investor. Rajib Mishra CMD said HPX is doing well and has traded more than 4.5 billion units in the last 9-10 months with 534 clients. The investment in HPX is good and the company has not decided to change it.

• [00:18:08] Nilay Kumar Raj asked if PTC promoter is willing to sell stake to private energy companies. Rajib Mishra CMD replied that the company does not have any information of such development.

• [00:18:46] Ranedhar from Avendus Park asked if PTC India is benefiting from the power demand and supply crunch in India, and if they are getting more inquiries for short-term contracts. Rajib Mishra CMD said the volume for April and May is 21% more than the previous year and traded volume is always higher if the increase in demand is more.

• [00:19:50] Mohit Kumra from Kumara Investments queried if the company still intends to sell its stake in PTC Financial Services and if not, if it has any intention to invest more money into PFS. Rajib Mishra CMD answered that the company has no intention to invest more in PTC Financial Services and the divestment is on pause, with further decisions yet to be made.

• [00:27:13] Mangesh Kulkarni from Almondz Global asked if one can expect an interim dividend from the parent company in 1Q or 2Q since PFS has declared a dividend. Rajib Mishra CMD answered that the company has given a dividend of INR7.80 per share and any future decisions will be shared at the appropriate time.

• [00:28:33] Vaibhav Gupta from Bowhead Investment asked about overdues beyond 45 days for FY21, FY22 and FY23. Harish Saran ED said the total outstanding for FY23 was INR5,398 and as of 31st March it was INR6,739. PTC looks at debtors minus creditors as the open position and as of 31st March, the open exposure for more than 45 days was around INR363 crores, out of which INR157 crores has been received, leaving a net exposure of INR206 crores from Bihar and J&K.

• [00:31:34] Rajesh Shah asked if the margin would improve in the current financial year with a better mix of long and medium-term contracts compared to short-term contracts. Rajib Mishra CMD said that last year, PTC made an effort to improve margins by improving the mix and ceding low margin volumes. This is a continuous effort and may lead to better results, but it is not appropriate to predict future outcomes.

• [00:34:28] Vaibhav Gupta from Bowhead asked about receivables beyond six months on March 23. Rajib Mishra CMD said the open exposure for more than 6 months is around INR261 crores as of March ’23 and out of that, INR150 crores has been received, leaving around INR100 crores outstanding.