PTC Fin Service

The company has posted a very good set of numbers for Q3FY14 and rightly so, the stock price has jumped up today. The PSU has showed a whopping 315% (YoY) jump in net profit at Rs.91 crore on a 47% rise in net revenue at Rs.2771 crore. What really boosted the performance was the amount of Rs.73 crore it received during the quarter as overdue from Uttar Pradesh Power Corporation
from sale of power. But for this surcharge, the net profit still would have shown a very good growth of 99%. This robust performance was also driven mainly by higher volumes, which for the quarter rose 40% at 8236 MU. During Q3, it also began supply of 250 MW of power to Bangladesh.

What has also helped is the fact that the company has made a tactical shift in its services basket. From selling only to long term power-purchase agreements (PPAs), the company now is selling to direct retail, short term and long term PPAs too. Also, the PPAs which it has entered into for long term, are all getting commissioned now and this is contributing to the volume growth, with a steady rise in realizations. With the Southern grid also in place, the coming quarters could see a surge in volumes. PTC has also been authorised by the central government to trade electricity with Bhutan, Nepal and Bangladesh, the statement said. The Company is also actively participating on Indian Energy Exchange, the first national level power exchange in the country.