PTC India Limited Q3 FY23 Earnings Conference Call Insights

Key highlights from PTC India Limited (PTC) Q3 FY23 Earnings Concall

Management Update:

• [00:04:29] PTC said that the company focused more on the core margin than on volumes.

Q&A Highlights:

• [00:11:32] Anshuman Ashit at ICICI Securities enquired about the decision taken regarding margins, resulting in decline in 9M margins. Rajib Mishra MD said it’s a business call that PTC keeps on taking.

• [00:13:59] Anshuman Ashit at ICICI Securities asked about the cross-border volumes for 3Q23 and for nine months. Pankaj Goel CFO replied that the cross-border volume for 3Q23 was 1,175 MUs.

• [00:14:23] Saloni Ajmera from Antique Ltd queried about the reduction in total outstanding receivables for 9M FY23. Pankaj Goel CFO answered that the total reduction for the debtors was around INR584 crore in the receivable part. On Mar. 31 it was INR4,090, crore which has come down to INR2,340 crore on Dec. 31, 2022.

• [00:20:04] Mohit Kumar from DAM Capital asked about the status of monetization of PTC Energy and PTC Financial, if it’s possible in next 1-1.5 years. Rajib Mishra MD replied that PTC has appointed a transaction advisor and they are working on the monetization of PTC Energy, which is already on. On PFS, the Board has decided to keep it on hold till the appropriate time.

• [00:21:45] Mohit Kumar from DAM Capital enquired about the dividend and when it will be announced. Rajib Mishra MD answered that PTC has a dividend declaration policy and it will be considered at the appropriate time. And if the company is doing good, shareholders will be rewarded for that.

• [00:22:43] Rajesh Shah asked about the status of sale of the wind power subsidiary. Rajib Mishra MD replied that PTC has received good response on the EOI and there are multiple interested parties. PTC has appointed SBI Caps as the transaction advisor and they will start the process as soon as possible.

• [00:31:08] Bharanidhar Vijayakumar at Spark Capital asked if it’s a regulatory requirement to bring down PTC’s stake in HPX to 5%. Rajib Mishra MD answered that what PTC is doing is per regulatory requirements and PTC follows the PMR 21 when PTC has maintained its shareholding in HPX. No further plans can be shared.

• [00:34:16] Vaibhav Gupta of Bowhead queried about the gross receivable beyond 6 months and 1 year. Rajib Mishra MD replied that gross receivable for more than 6 months is around INR1,200 crore. For more than 1 year, there is outstanding of INR175 crore and out of that INR150 crore is with Telengana.

• [00:35:31] Gaurav Gupta at Invesco Enterprises asked how many response has been received against PTC’s EOI for PRC Energy stake sale. Rajib Mishra MD replied that it’s confidential and the details cannot be shared.

• [00:36:28] Bharanidhar Vijayakumar at Spark Capital asked about the trading volume growth expected in FY24. Rajib Mishra MD answered that PTC is looking forward to the growth in India market and will try its best to meet the customer requirement.

• [00:42:14] Bharanidhar Vijayakumar at Spark Capital asked about the Board composition of PFS and PTC, when the vacant positions will be filled. Rajib Mishra MD replied that in PFS all the board positions are filled. For PTC, the company has inducted one independent director filed in the stock exchange. And the rest of the things, PTC will go by the provisions.