Is PTC India Limited on fire? Q1 FY25 results show explosive profit growth

PTC India Limited, a prominent player in India’s power trading sector, has unveiled its consolidated and standalone financial results for the first quarter ended 30th June 2024, showcasing robust performance and notable growth across key metrics.

Consolidated Financial Performance

In the first quarter of fiscal year 2025 (Q1 FY25), PTC India Limited reported a substantial increase in Profit Before Tax (PBT), which surged to ₹247 crores, marking a 29% rise from ₹191 crores in Q1 FY24. Similarly, the company’s Profit After Tax (PAT) reached ₹189 crores, a 33% jump from ₹143 crores recorded in the same quarter of the previous fiscal year. This growth is reflected in the Earnings Per Share (EPS), which climbed to ₹5.87 in Q1 FY25 from ₹4.39 in Q1 FY24.

Standalone Financial Performance

On a standalone basis, PTC India Limited reported a 27% increase in Total Operational Income, reaching ₹187 crores in Q1 FY25. This growth is attributed to enhanced operational margins and adjustments in net rebate and surcharge compared to Q1 FY24. The standalone PAT for the quarter stood at ₹106 crores, up from ₹90 crores in the previous year. The trading volume for Q1 FY25 was 20.5 billion units (BUs), a slight decrease from 20.6 BUs in Q1 FY24. Consulting income for the quarter was ₹11 crores, with the core margin recorded at 3.50 paisa per unit.

Commentary from Leadership

Dr. Manoj Kumar Jhawar, Chairman & Managing Director (Addl Charge) and Director (Commercial & Operation) of PTC India Limited, commented on the results, noting the impact of unusual demand patterns and extreme weather conditions. He highlighted that despite these challenges, the company’s balanced portfolio ensured stable performance. Dr. Jhawar stated, “The unusual changes in demand pattern, partly due to extreme weather conditions during the quarter saw high electricity demand and mismatches. The flat volume achieved in this scenario represents the balanced portfolio composition of the company. In the endeavour to increase energy offerings, we have made operational medium-term contract supply of power for 5 years. The supply from renewable sources (Hydro & Wind) has shown some variance from last quarter, but overall, they are performing as per their design capacity and contractual obligations. We expect to maintain the trend in the near term.”

PTC India Limited, a pioneering initiative by the Government of India, remains a leader in the country’s power trading market since its inception. The company plays a crucial role in facilitating electricity trading, including cross-border trading with Bhutan, Nepal, and Bangladesh. It engages in both long-term trading of power from major projects and short-term trading to address supply and demand mismatches across different regions.

Driven by its vision of a vibrant power market, PTC India Limited has established itself as a trusted partner in the electricity trading sector, offering a range of products and services to meet diverse customer needs. The company’s involvement in cross-border electricity trading is a significant component of its operations, underscoring its pivotal role in shaping the power market landscape in India.