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Looking for people who are interested in taking full ownership of PTC Energy Limited: Deepak Amitabh; PTC India
I feel, that long-term and medium-term will have a contribution of 45-47 per cent at the end of the year and short-term may have a contribution of 52-55 per cent .
Deepak Amitabh, Chairman & Managing Director, PTC India Ltd., spoke about the quarter results, the impact of short-term contracts, plans to sell the non-core assets and power sector during an interview with Swati Khandelwal, Zee Business. Edited Excerpts:
Q: Update us on volumes and the average spread of the quarter and expected to trend for the fourth quarter?
A: The base effect of the same quarter of last fiscal, which was quite big, is something that you can see a decline of 9 per cent in our volumes in this quarter. But, if you look at the performance of the last 9 months then we, our volume, has grown by 12 per cent.
Q: How did the short-term contracts contribute in your business and what is your opinion in the long-term contracts for Q4 and FY20?
A: There has been volatility in our short-term contracts since we were listed in the market in 2004 and we have maintained it. You can’t think something big with short-term contracts. A slight reduction in banking transaction is something that led to the fall. There was a fall in the bilateral as well, but we had a growth on the exchange. However, the short-term has the contribution of 53 per cent in the quarter and rest part of the year while the remaining 47 per cent came from the medium-term and the long-term contracts.
I feel, that long-term and medium-term will have a contribution of 45-47 per cent at the end of the year and short-term may have a contribution of 52-55 per cent. We are expecting a double-digit growth this year while the volumes will reach the double-digit growth by next year. If you have a look at our operating margin, then you will find that our total operating income has gone up in this quarter and there is a growth in EBITDA too. You can also find that there is a growth in our financial matrix and it will continue to grow next year.
Q: Any update on the reports that PTC India will be selling its non-core assets?
A: We have a fully-owned subsidiary company, PTC Energy Limited, which is functioning with an operational asset of 290MW. It needs capital for growth and that is a reason that we are looking for people who are interested in taking full ownership or 51 per cent ownership of the company. We are open for it and hope that we will be able to reach some definite conclusion, which we will bring before you.
Q: In case of PTC Financial Services, which segment has been most stable in terms of financing - power, oil and gas, coal mine and ports?
A: See, the works that we have done in renewable power is performing well at present. In fact, we have also provided some funds for the Hybrid-Annuity Model of the central government and we have expertise in it. But, this is a time where every NBFC should lend after thinking about it, we are capable in it.
Apart from this, the board of PTC Financial is meeting today to take a call on the quarterly results, which will be available with you by this evening.
Q: Let us know about the financing situation in the power sector amid ongoing concerns and RBI’s 12 February circular?
A: See, I have a belief that good projects/works are available in every sector at any given time and the team is supposed to select the best out of them. Thus, good people and good projects are always available in the market, but you must look at their cost of earning and the bidding price and establish consonance between the two or else finance is not possible. And, this is happening in the industry.
Growth is an important thing, but you must look towards the consolidation and that’s why you should think before making any decision in the financing business.
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Q: If I talk from the perspective of PTC financial services and PTC India then have you started funding to any new sector?
A: PTC is concentrating on the core trading business, where we are the master of the game and separate management is looking after other subsidiary companies. When it comes to equity investment than we are not ready to invest in any non-related business.
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