PTC India expects a 20% increase in power trading in FY24

PTC India Ltd., a provider of power trading solutions, saw a 16% increase in power trading volumes during the first quarter of this fiscal year and anticipates a 20% increase overall in 2023–24. This growth is being attributed to targeted segment-based trade and innovative products. PTC India engages in both long-term trading of electricity produced by sizable power projects and short-term trading resulting from supply and demand imbalances that invariably develop in different parts of the nation.

Additionally, the business is required to conduct electrical trading with Bangladesh, Bhutan, and Nepal. The company's chairman and managing director, encouraged by the operational success in the first quarter, was exceedingly upbeat about the growth possibilities in the current fiscal in an interview with PTI.

"From April through June of this fiscal year, our daily power trading volumes climbed by 16% compared to the same period last year. On June 25, we reached the greatest trading volume of this fiscal, 300 MU/day. We anticipate that the volumes will rise much further and see a 20% gain overall, according to Mishra.

The election of Mishra as the company's chairman and managing director was accepted by shareholders of PTC India with the necessary majority votes at an extraordinary general meeting (EGM) conducted last week. He looked for a growth rate of about 20% for the entire fiscal year and anticipated that the economic momentum would pick up in the remaining time.

PTC India's combined total revenue last fiscal year was Rs 16,002.51 billion, down from Rs 16,879.77 billion the year before. The company's net profit last fiscal year was Rs 507,15 billion, down from Rs 551.67 billion. On the operational front, during the previous fiscal, the volume of power traded decreased from 87,515 million units to 70,610 million units.

A decrease in exchange-traded volumes of low-margin products caused a 19% decrease in trading volumes over the previous fiscal year. The company's decision to concentrate and safeguard profit margins rather than pursuing bigger quantities, according to Mishra, is what caused the decline in volumes. "FY23 for PTC India was a year of consolidation through strategic decisions, volume concessions to avoid negative effects on the cost of capital, and business model reorientation. Our company emphasised core profits over volumes as a component of the business plan throughout the year," he stated.

Mishra pointed out that the company's consultant division is taking on challenging projects including distribution management, project management for a hub for renewable energy, help in establishing a green hydrogen hub, and advice for a battery energy storage system. "The company's sponsored power exchange platform Hindustan Power Exchange has traded more than 5 billion units and onboarded more than 550 clients within 12 months of operations," he claimed.

PTC India's CMD, the company is beginning a number of initiatives in the selling of renewable energy with novel business models and is strengthening its ties in cross-border trades with Bangladesh, Nepal, and Bhutan. Mishra emphasised the fact that every required action had been taken to ensure good corporate governance and moral conduct. After four quarters, PTC India and the firms in the group have released unqualified annual accounts. All three businesses have demonstrated profitability.