PTC India Q2 net profit down 3.8% to Rs 194 cr over lower power generation

Power trading solutions provider PTC India on Monday reported a 3.8 per cent decline in consolidated net profit at Rs 193.64 crore in the September quarter, mainly due to lower wind power generation by one of its arm.

The company had posted a net profit of Rs 201.35 crore in the September quarter a year ago, a BSE filing said.

Total income rose to Rs 6,011.39 crore during the quarter under review from Rs 5,235.66 crore in the same period last year.

The company's board of directors in its meeting held on Monday declared an interim dividend of Rs 2 per equity share for fiscal year 2020-21.

Low wind profile (generation) for a wind project of the company's subsidiary PTC Energy Ltd led to the decline in net profit, PTC India said.

The group is in the business of power and investment. Revenue from operation of the group includes sale of electricity and interest income from loan financing/debenture.

On COVID-19, the company said based on current estimates, it expects that the carrying amount of its assets will not deteriorate and will be recoverable in full.

"The growth in business volumes during the quarter has been led by the demand spillover from the first quarter. The pent up-demand arising out of gradual unlock-down of the commercial activities from various segments including industries, commercial, domestic and agriculture, too contributed substantially to the same," PTC India Chairman & Managing Director Deepak Amitabh said.

Liquidity infusion in distribution companies as part of 'AatmaNirbhar Bharat' and RBI's softer monetary policy contributed to effective liquidity management, he added.

"We expect the fiscal intervention by central government to boost demand going forward as generally there is a time lag between the steps taken and real demand creation. We remain confident that all these efforts including development of industrial infrastructure will keep the demand robust going forward," he said.

The company remains cautiously optimistic of consolidating its leadership position based on the emerging opportunities in the coming quarters, Amitabh said.