PTC INDIA LTD. INVESTOR UPDATE MAY 2014
DISCLAIMER This presentation and the accompanying slides (the Presentation ), which have been prepared by PTC India Limited (the Company ), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to: the performance of the Indian economy and of the economies of various international markets, the performance of the power industry in India and world-wide, competition, the company s ability to successfully implement its strategy, the Company s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company s market preferences and its exposure to market risks, as well as other risks. The Company s future results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forwardlooking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. 2
A Re-cap of May 2013 Company The company s growth strategy envisages a balanced growth of trading volumes in Short Term, Long Term, Tolling and Retail Segment Subsidiaries to support growth strategy through synergies Business Environment Challenges and concerns in the form of financial health of state utilities, fuel availability, inadequacy in distribution system Challenges expected to alleviate through a combination of measures like FRP, tariff revisions and compensatory revisions Encouraging trend of shifting of trading volumes from UI to OTC and Exchanges
AGENDA PERFORMANCE WAY FORWARD 4
2013-14 IN PERSPECTIVE Total Volumes (MUs) Total Revenue from Operations(Rs. cr.) 34% 18236 24481 (0.5%) 24325 17.5% 23% 28597 35130 15% 7845 9060 (15%) 7701 15% 30% 8857 11511 2009-10 2010-11 2011-12 2012-13 2013-14 Profit Before Tax (Rs. cr.) 2009-10 2010-11 2011-12 2012-13 2013-14 Profit After Tax (Rs. cr.) 104% 364 95% 251 49% 132 197 (15%) 166 7% 178 48% 94 139 (14%) 120 7.5% 129 2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2013-14 5
Q4FY14 AT A GLANCE Total Volumes (MUs) 14% 7656 Total Income from operations (Rs. Cr.) 30% 2198.74 2848.62 6732 Q4FY13 Q4FY14 Q4FY13 Q4FY14 EBIDTA (Rs. Cr.) PAT (Rs. Cr.) 106.72 68.91 102% 86% 52.88 37.03 Q4FY13 Q4FY14 Q4FY13 Q4FY14
KEY ACHIEVEMENTS Long Term Power Sale Agreements executed for more than 1500 MW capacity with Discoms of UP, Rajasthan and Tamil Nadu Commencement of Supply of 250 MW power to Bangladesh on Medium Term basis Increased focus on the retail (Direct-to-Business) segment. More than 1200 MUs contributed by Retail in Q4FY14 and more than 3000 MUs contributed for the year FY14 Tolling Agreements converted to PPAs to minimize risks Received net surcharge of Rs. 50.63 crore in Q4FY14, the net surcharge received for FY14 was Rs. 138.41 crore Increase in income from rebate during the quarter to Rs. 9.85 Crore. For the year net rebate income was Rs. 35.97 Crore Commencement of supply of 300 MW power from GMR and 200 MW from Jaypee Karcham Wangtoo on Long Term basis to Haryana in April 2014 and May 2014 respectively Maiden dividend of Rs. 13.49 Crores received from PTC India Financial Services
PHYSICAL PERFORMANCE - SNAPSHOT Segments 2013-14 (Units in Millions) (%) of Total Trade 2012-13 (Units in Millions) (%) of Total Trade 2013-14 vs. 2012-13 Short Term Trades* 21,470 61.12% 17,669 61.79% 21.51% Medium Term Trades 1,407 4.01% 1,387 4.85% 1.44% Long Term Trades** 12238 34.8% 9527 33.3% 28.5% Generation 15 0.04% 14 0.05% 7.14% Total 35,130 100.00% 28,597 100.00% 22.85% * Short Term Trades also includes trades on power exchanges; **Long Term Trades also includes trades from Cross Border and tolling converted into trading 8
NUMBERS UP-CLOSE Q4FY14 (STANDALONE) Particulars Q4FY14 Q4FY13 % change (YoY) Power sold (MUs) 7656 6732 14% Total Sales (Rs. Cr.) 2849 2199 30% EBIDTA (Rs. Cr.) 107 53 102% EBIDTA Margin (%) 3.76 2.41 135 bps Other Income (Rs. Cr.) 12 2 409% PBT (Rs. Cr.) 104 52 101% PAT (Rs. Cr.) 69 37 86% EPS 2.33 1.25 86% Depreciation of about Rs. 1 Crore in Q4FY14 and Q4FY13 Interest of about Rs. 2 Crore in Q4FY14 and Rs. 0.03 Crore in Q4FY13
RECIEVABLES & REBATES Q4FY14 Q4FY13 Particulars FY14 FY13 9.85 0.70 Net Rebate disallowed (Rs. Cr.) 35.97 8.87 50.63 11.04 Net surcharge received (Rs. Cr.) 206.43 12.53 0.048 0.036 Margin per unit (without rebate surcharge & tolling converted to PPA) (Rs./ unit) 0.041 0.039 Debtor / Creditor position as at March 31, 2014 stood at Debtors Rs. 2085.69 Crore Creditors Rs. 1085.67 Crore Long Outstanding of Uttar Pradesh cleared during FY14 along with surcharge Tamil Nadu Receivables reduced to ~Rs. 260 Crores (Partial Surcharge also received from Tamil Nadu) 10
NUMBERS UP-CLOSE FY14 Standalone FY13 % change (YoY) Consolidated Particulars FY14 FY13 % change (YoY) 35130 28597 23% Power sold (MUs) 35143 28610 23% 11,511 8,857 30% Total Sales (Rs. Cr.) 12099 9199 32% 371 184 102% EBIDTA (Rs. Cr.) 871 463 88% 3.22 2.07 115 bps EBIDTA Margin (%) 7.20 5.03 217 bps 4 4 (0.2%) Depreciation (Rs. Cr.) 9 8 3% 3 1 198% Interest (Rs. Cr.) 224 108 108% 54 12 350% Other Income (Rs. Cr.) 44 14 222% 364 178 104% PBT (Rs. Cr.) 639 348 84% 251 129 95% Reported PAT (Rs. Cr.) 361 198 82%
LONG TERM PPA PIPELINE Power Trading Medium / Long term No of Projects Year Wind Gas Hydro Total Total Thermal 2012-2013 1 2 1 9 13 13 2013-2014 - 3 1-4 17 2014-2015 - 5-1 6 23 2015-2016 - 4 1 1 6 29 2016-2017 - 6 - - 6 35 Total 1 20 3 11 35 Long term Capacities Capacity (GW) Stand By PPA Total Capacity Cross Border Grand Total 2012-2013 1.0 0.2 1.1 1.4 2.6 Added During 2013-2014 0.6 0.6 Added During 2014-2015 1.4 1.4 Added During 2015-2016 3.5 3.5 Added During 2016-2017 3.1 3.1 Cummulative Upto 2016-2017 9.5 0.2 9.7 1.4 11 11 GW of capacity tied with various power producers / IPPs. ~3.1GW is already operational and is being sold ~4.8 GW capacity is est. to be operational for long-term sales during the FY15 and FY16 o 14 thermal units and 11 hydro based units ~3.1GW capacity is est. to be operational for long-term sales during FY17. o from 6 thermal units 12
Way Forward Focus on balanced development of trading business portfolio for sustained growth o PPAs on long-term basis in place for ~11,000 MW, out of which on-sale arrangements tied up for an aggregate capacity of ~7,100 MW Long term volume will move to 50% plus of total trading volume in 2016-17 from 34% in 2013-14 Steady growth in business volumes; backed by a robust business model, built on multiple segments. Well positioned to benefit from improvements in policy & regulatory environment; strong balance sheet, robust cash flows, experience from a 15-year operating history,. PTC to continue to consolidate its leadership position and maintain growth; subsidiaries to give synergies. 13
Our Vision To be a frontrunner in power trading by developing a vibrant power market and striving to correct market distortions THANK YOU. www.ptcindia.com