Press release

New Delhi, April 26, 2005

PTC India Limited – Summary of Financial Performance for Q4, FY 2004-05.

Performance Highlights

  • Total income for the year at Rs. 2037 Crores.
  • Profit After Tax at Rs. 24.03 Crores.
  • Trading volumes of 8,887 Million Units
  • Recommends dividend of 8%, fourth consecutive dividend paying year.
  • Signs long-term agreements worth 1400 MW for purchase and sale of power.
  • New Clients’ acquired in long-term business segments of captives and industrial consumers.
  • Starts Advisory Services for the power sector.

PTC India Limited (formerly Power Trading Corporation of India Limited) today announced its results for Q4FY05/FY2005.

Company’s statement

“Performance during the year shows company’s achievement of significant starts in its long-term business segments, while sustaining its dominant position in the market for traded power. The performance is noteworthy in the light of challenging business conditions, including increased competition, restrictive regulations and unusual shortage of marketable surplus of electricity”.

FY2005 v/s FY2004

The company recorded an income from operations of Rs. 2032.08 Crores for the FY 2005 as against Rs.2371.81 Crores reported in the FY2004, lower by 14.3%. The Profit before depreciation, interest and tax (PBDIT) was lower by 21% at Rs. 40.84 crores compared to Rs 51.69 Crore. Net profit for the FY2005 was at Rs 24.03 Crores, down 25% from Rs.32.48 Crores of the previous year.

Q4 FY2005 v/s Q4 FY2004

The Income from operations of the company was at Rs. 340Crore from Rs.634 crores, lower by about 46 % over the corresponding quarter on the back of nearly 54% lower volumes at 1331 MUs as compared to 2887 MUs during the corresponding quarter of the previous year. The Profit before depreciation, interest and tax (PBDIT) was lower by 48% at Rs. 6.73 crores compared to Rs 13 Crore. Net profit for the Q4FY2005 was at Rs 3.78 Crores, down 54 % from Rs.8.08 Crores of the corresponding quarter.

Reflecting on the performance, Mr. T N Thakur, Chairman and Managing Director, PTC India, said, "We will continue our endeavors to develop the power market in the country in a balanced and orderly manner. Our intermediation and advisory roles will continue to approach the problems faced by industry participants in a holistic manner. We are confident that the starts made by us in the long-term business segments during the year will contribute to the long-term sustainability of our business model. We continue to occupy the leadership position, not only because of significant volumes being maintained inspite of a continuation of lower marketable surpluses and increased competitive activity, but also because of our initiatives to address the customers’ needs in innovative ways."

During the year, PTC has traded in total 8,887 MUs compared to 11,029 MUs traded in the previous year (representing a volume lower by 19.4%).

During the year, PTC has entered into long-term Power Purchase / Sale agreements for five projects totaling a capacity of 555 MW. The cumulative capacity tied up through long-term projects by the company, therefore, has reached 1405 MW.

Additionally, the company has entered into MOUs with another 13 projects totaling to a capacity of 10,000 MW, for which Power Purchase and Sale agreements are being negotiated. Two small hydro projects in which long-term PPAs were signed have successfully achieved financial closure and construction work has commenced at site.

During the year, PTC also picked up an 11% stake in the 300 MW Lanco Amarkantak project in Chhattisgarh, in line with its decision to take limited equity stakes in generation projects, where the Company is already in long-term Power Purchase Agreements, to facilitate their financial closure.

Acquisition of new customers and partnerships gained momentum with the signingof an memorandum of understanding (MoU) with Oil and Natural Gas Corporation (ONGC), Wartsila Inc., PTC is seeking to tap the surplus capacity of the captive plant manufacturer’s existing customer base, having an installed capacity of nearly 2600 MW.

PTC’s advisory services also made a modest beginning during the year, with the company successfully completing advisory assignment for RERC, GoHP and some IPPs.

About PTC

PTC India Ltd. (formerly known as Power Trading Corporation of India Ltd.) is a pioneer in starting a power market in India. The company was born out of the need for an institution, which would provide credit risk mitigation to private power project developers and providing best value to both the buyers and sellers while ensuring optimum utilization of resources.

The trading activities undertaken by PTC include long term trading of power generated from large power projects as well as short term trading arising as a result of supply and demand mismatches, which inevitably arise in various regions of the country.

PTC is a unique example of a Government of India initiative for a Company which is emerging as a highly successful public-private partnership with major PSUs of the Union Power Ministry as promoters and wide ownership interest. PTC is a professionally managed company with a diversified board of directors including eminent people as independent directors.

PTC intends to maintain its leadership position in power trading while at the same time adhering to its core value of transparency and customer needs focus.

For more information contact

Rajiv Bhardwaj
PTC India Limited
Tel: 91-11-51659139, 9810060480
/ HarshWardhan
Mutual PR Pvt Ltd
Tel: 91-11-24339863,4, 981016711

PTC India Limited

(Formerly known as Power Trading Corporation of India Limited)

2nd Floor, NBCCTower, 15 Bhikaji Cama PlaceNew Delhi - 110 066 Tel: 011-51659127, 51659128, 51659500. Fax: 011-51659126

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