PTC India likely to clock 20% growth in power trading in FY24: CMD Mishra

New Delhi: Power trading solutions provider PTC India has clocked 16 per cent growth in itspower trading volumes during the first quarter of this fiscal and hopes for around 20 per cent rise in the entire 2023-24, driven by targeted segment wise trade and innovative products, according to CMD Rajib Kumar Mishra.

PTC India'strading activities include long-term trading of power generated from large power projects and short-term trading arising from supply and demand mismatches, which inevitably occur in various regions of the country. The company also has a mandate to trade electricity with Bhutan, Nepal, and Bangladesh.

In an interview with PTI, the company's chairman and managing director was extremely bullish about the growth prospects in the current fiscal, buoyed by the operational performance in the first quarter.

"Our daily power trading volumes have increased by 16 per cent year-on-year in the April-June period of this fiscal. We crossed the 300 MU/day traded volume on June 25, the highest in this fiscal. We expect the volumes to increase further and clock a growth of 20 per cent for the full year," Mishra said.

At an extraordinary general meeting (EGM) held last week, shareholders of PTC India approved the appointment of Mishra as the company's chairman and managing director with requisite majority votes. He expected the growth momentum to strengthen in the remaining period and hoped for around 20 per cent growth for the full fiscal.

PTC India's consolidated total income stood at Rs 16,002.51 crore last fiscal as against Rs 16,879.77 crore in the year-ago period, while net profit was Rs 507.15 crore during 2022-23 as compared with Rs 551.67 crore a year ago.

In the last fiscal on the operational front, the power trading volumes stood at 70,610 million units as against 87,515 million units in the year-ago period. The trading volumes were down by 19 per cent in the last fiscal on account of a decline in low-margin power exchange-traded volumes, he said.

Mishra attributed the fall in volumes to the company's strategy to consolidate and protect profit margins, instead of going after higher volumes. "FY23 for PTC India was a year of consolidation by taking strategic calls, ceding volumes to avoid negative impact on the cost of funds and reorienting the business model. Throughout the year, our company prioritised core margins over volumes as a part of the business strategy," he said.

Mishra noted that the company's consultancy business is acquiring complex assignments like distribution management, project management for a renewable energy hub, assistance in creating a green hydrogen hub and advisory for a battery energy storage system. "The company's sponsored power exchange platform Hindustan Power Exchange has traded more than five billion units and onboarded more than 550 clients within 12 months of operations," he said.

PTC India CMD said the company is launching multiple initiatives in trading renewable energy with fresh business models and is deepening its relationship in cross-border trades with Nepal, Bhutan and Bangladesh. Mishra also stressed that all the necessary steps have been taken to ensure corporate governance and best ethical practices.

PTC India and its group companies have published unqualified annual accounts after four quarters.All three companies have shown profitability. Promoter companies (Powergrid, NTPC, PFC and NHPC) hold a 16 per cent stake in PTC India, while 84 per cent shareholding is with financial institutions, large utilities, and the public. PTC India has two subsidiaries -- PTC Energy Ltd and PTC Financial Services Ltd.