The Hindu Business Line : PTC Q2 net rises 32%

New Delhi, Oct. 24 Power trading major PTC India Ltd on Wednesday posted a 32 per cent rise in the net profit for the second quarter of the current fiscal at Rs 11.40 crore, as against Rs 8.65 crore during the corresponding period last year.

Total income during the quarter was up 12 per cent at Rs 1,473.61 crore, from Rs 1,318.54 crore during the same quarter last fiscal, a company statement said.

Net profit for the six-months ended September 30 this fiscal rose 12.5 per cent to Rs 23.28 crore, while total income grew 12 per cent at Rs 2,641.82 crore during the period. The company’s trading volume for the second quarter grew 26 per cent at 4,110 million units (MUs) while volumes for the half-year rose by 12 per cent at 6,591 MUs.

QIB placement

PTC also said it will raise Rs 1,200 crore during the current fiscal through placement to Qualified Institutional Buyers for financing its business development requirements, including floating a financial services arm. The company said it has received approval from the board to raise Rs 1,200 crore, as well as to increase the FII limits for equity capital to 60 per cent from the present 40 per cent.

The money is expected to be utilised for pushing up the capital base, with the company gearing up for a substantial rise in its trading volume in the future. At present, the company’s volume of trading is around Rs 3,500 crore annually. The amount would also be utilised towards investment in PTC Financial Services Ltd, for which it is in the process of finalising partners and expects to close a deal shortly.

“The performance of the company during the quarter is commendable on the back of consolidating our market share in the trading business. Also, the signing of the long-term agreements is adding to the sustainability of our business model,” PTC India Chairman and Managing Director Mr T N Thakur said in a statement. Going forward, PTC India would continue to focus on the long-term agreements to attain a captive and sustainable mass of tradable power, he added.