The Hindu Business Line : PTC Q1 net profit rises 6%

Power trading major PTC India Ltd on Tuesday announced a six per cent increase in the first quarter net profit at Rs 12.01 crore, compared to Rs 11.31 crore posted during the same quarter of the previous quarter.

The company reported a 136 per cent growth in its total income at Rs 1,049.97 crore as against Rs 443.97 for the corresponding quarter of the previous year.

At its annual general meeting the company also decided to set up a subsidiary for equity investments in power projects, besides approving the increase in FII limit to 40 per cent, a PTC release said.

According to the release, the company traded 2.625 billion units of electricity during the quarter as against 1.523 billion units during the same quarter of 2005-06. While the increase in income was on account of higher traded volume, the slower growth in net profit was largely due to the 4 paise per unit cap on trading margins imposed by power regulator CERC.

"The bottomline growth has been moderate as the impact of the regulation capping trading margins at 4 paise per unit has been evident through this quarter and has been partly offset by higher volumes," the PTC Chairman and Managing Director, Mr T. N. Thakur, said.