PTC India profit up 10% but subdued power demand decreases trading volume

The company's total income from operations was up 5% to Rs 71.77 crore in June quarter

PTC India Limited, the state owned power trading firm reported a profit of Rs 47.93 crore for the June quarter, which is 10 per cent higher than same quarter a year ago.

The company's total income from operations was up five per cent to Rs 71.77 crore as against Rs. 68.11 crore in the June quarter a year ago. 

PTC, which is involved in power trading across the country and also cross-border trade of electricity witnessed its trading volumes decreasing marginally to 10,265 MU as against 10,309 MUs during the corresponding period last year.

The company cited supressed demand from the power distribution companies as the reason for traded volume decreasing.

"The present set of constraints in the market for short-term trades in electricity has led to subdued growth. We believe that, going forward, increasingly stakeholders will look out for solutions from the medium term market to contain the uncertainty in tie-ups of volume and price discovery in the market for short term trades in power," said Deepak Amitabh, chairman & managing director.

PTC's operating margin was however up four per cent to Rs 58.78 crore as against Rs 56.54 crore in the year ago period.The company said it had already tied-up more than 11,000 Mw generation capacity on long term basis, and is actively converting this into power-sale agreements for medium and long-term. 

The company has already executed Long Term Power Sale Agreement of more than 7500Mw (including for Cross Border sales).

The company has been granted funds from 'TheProsperity Fund by the British High Commission' on behalf of Government of United Kingdom for preparing the Indian power market for carriage and contentseparation through collaboration with the UK.

"The company will remain focused onincreasing its presence in multiple business segments like long term, medium term and short term sales to utilities as well as to the non-utility (Retail)segment," PTC said.