PTC INDIA LIMITED 
By PRESS RELEASE
1. PTC, which has been trading power since the year 2000 had
till 31st March 2011 sold and recovered almost 100% of its
power dues of around Rs. 40,000 Cores.
2. The case of TNEB and UPPCL, are exceptional cases wherein
the payments have been delayed. PTC's management is in
constant touch with the officials of TNEB and UPPCL to pursue
the matter of delay in payment. The event has to be seen from
the perspective of delay in payments only and not as a
default. Though payments have been delayed, they will come
with surcharge (15% per annum) which will compensate the
interest out flow on account of loan taken. This is a
temporary mismatch only as PTC follows a conservative
accounting policy and accounting for surcharge is on receipt
basis only rather than on accrual basis. The average
collection period in HIFY12 stood at about 87 days, whereas
the average payment period stood at 35 days, thus implying a
net debtor days of about 52 days. If one excludes TNEB and
UPPCL, the net debtor days come down to about 7 days
indicating that almost all other payments are coming on
time.
3. Compared to earlier quarters when payment billing and
receipt cycle was weekly, over the past few months the trend
of payment from utilities has changed. The payments are now
being received on the 30th day. The payment
cycle works in such a way that in case the utility pays
within the first 7 days they can avail a rebate. However, in
case they do not want to avail the rebate they can pay upto
30th day beyond which they will be levied with
surcharge.
4. The first tolling project of PTC (Simhapuri 200 MW) is
expected to be commissioned in December 2011 and the power
from the same has already been tied up for sale for a period
of 5 months starting January, 2012 at margins better than
those available in short term markets. Further, the cost of
generation of around Rs 4 per unit also includes the margin
on coal trading which PTC Energy Limited (100% subsidiary of
PTC) would be earning for providing its services to PTC.
Another tolling project of PTC i.e. Meenakshi Energy (150 MW
tolling project) is also expected to be commissioned in first
quarter of FY 13.
5. Margin per unit on sale of electricity without rebate and
surcharge during Q2FY12 got reduced to 4.2 paise/unit (4.6
paise/ unit for Q2FY11) and to 4.5 paise/unit for H1FY12 (4.8
piase/unit for H1FY11). This was primarily on account of 10%
of sale in the current quarter being done through power
exchanges where margins are comparatively less.
6. PTC has fixed deposits and fixed maturity plans available
of over Rs 200 Crores at average yield of around 11% per
annum. Had PTC broken these fixed deposits / fixed maturity
plans, it would have paid penalties for pre mature
withdrawals. The average cost of borrowing as on date on
current debt of around Rs 336 Crores is about 10.25%. So,
effectively taking loan is no different than using own
resources in terms of financial
impact. Also, since PTC is expected to realize surcharge on
delayed payments, the interest cost is a temporary mismatch
only which would be more than compensated on receipt of
surcharge from the state utilities.
7. PTC has entered into more than 15,000 MW of PPAs including
1,416 MW of cross border projects out of which PTC already
has PSAs for about 5,400 MW on long term basis. Projects
under PPA are progressing at expected pace and PTC does not
foresee any problem on operationalization of the same except
for some delays in respect of some projects. PTC expects
nearly 1,500 MW getting commissioned in FY 13 and nearly
4500
MW getting commissioned in FY 14.
Puja Mehrish
PTC India Limited
Tel: 9899088550, pujamehrish@ptcindia.com
Harsha Vardhan
PTC India Limited
Tel: 91-11-41595163, 9999959411 harshavardhan@ptcindia.com
