PTC India Ltd — Call Transcript 2024

Feb 20, 2024

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Date: - February 20, 2024

Listing Department/ Department of Corporate Relations, The Bombay Stock Exchange Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai, Fax- 022-22722037/39/41/61/3121/22723719 Scrip Code: 532524

Listing Department The National Stock Exchange of India Limited, Exchange Plaza, C-1, Block G, Bandra- Kurla Complex, Bandra (East), Mumbai- 51, Fax- 022-26598237/38- 022-26598347/48 Company Code: PTC

Sir/ Madam,

Sub: Submission of transcripts of Investors & Analyst Meet held on February 16, 2024 on the financial results for Q3/9MFY2024.

In continuation of our letter dated February 09, 2024 in terms of regulation 30 and 46(2)(oa) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, enclosed please find the transcripts of the Investors & Analyst Meet held through VC on February 16, 2024 on the financial results for Q3/9MFY2024.

This is also available on the Website of the Company at www.ptcindia.com.

This is for information and record please.

Yours faithfully,

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Encl: as above

PTC India Limited

(Formerly known as Power Trading Corporation of India Limited) CIN : L40105DL1999PLC099328 2nd Floor, NBCC Tower, 15 Bhikaji Cama Place New Delhi - 110 066 Tel: 011-41659138, Fax: 011-41659142 E-mail: info@ptcindia.com Website: www.ptcindia.com,

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“PTC India Limited Q3 FY24 Earnings Conference Call”

February 16, 2024

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– MANAGEMENT: DR. RAJIB KUMAR MISHRA CHAIRMAN & MANAGING DIRECTOR, PTC INDIA LIMITED – DR. MANOJ KUMAR JHAWAR DIRECTOR, COMMERCIAL AND OPERATIONS, PTC INDIA LIMITED – MR. HARISH SARAN EXECUTIVE DIRECTOR, PTC INDIA LIMITED – MR. PANKAJ GOEL ED & CFO, PTC INDIA LIMITED

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Moderator:

Ladies and gentlemen, good day and welcome to the Investor Call of PTC India Limited Q3 FY24 Earnings Conference Call.

The management team at PTC India is led by Dr. Rajib Kumar Mishra - Chairman and Managing Director, PTC. Dr. Mishra is accompanied by Dr. Manoj Kumar Jhawar – Director, Commercial and Operations; Mr. Harish Saran - Executive Director, PTC and Mr. Pankaj Goel – ED & CFO, PTC.

At this moment, all participants are in listen only mode. Later, we will conduct a question-andanswer session. Please note that this conference is being recorded. I now hand the conference over to Dr. Rajib Kumar Mishra for opening remarks. Thank you and over to you, sir.

• Dr. Rajib Kumar Mishra: Thank you. Good afternoon, dear investors, analyst and the shareholders of PTC India Limited. It is indeed a pleasure to be with you this afternoon yet again with the 3rd Quarter Results.

You might have gone through both the “Results” published by PTC India Limited and our “Press Release” where we have given you some brief on how we have perceived our business this quarter. Let me tell you 9 months your Company has done very well, and we are growing both in terms of margin as well as the operating profits.

As far as this quarter is concerned, again, let me reiterate that the numbers are strong and the operating margin from sale of electricity is 7% above what we have done year-on-year last year. And then the million unit sold is 4% less than the previous year, but overall, in 9 months, we have grown again in this number. Let me just once again, although this is not part of the 3rd Quarter result, but in the month of January, we have a robust growth once again and we have reported in the Regulatory filings. So, we can once again confirm to our investors and analysts that the performance of the Company as far as the trading business is concerned is going well on track.

A couple of things which you might have noticed is:

• One, the reduction in our surcharge income and we have reported it in our income that compared to almost Rs. 58 crores last year, last quarter, the corresponding quarter, we have reported 16.63 as the surcharge number and there is a reduction of around Rs. 42 crores on this. Let me just inform our valued investors and analyst that this is a rolling number, and the surcharge is calculated on the annual basis and what we really accrue during this quarter is reported here. So, therefore, this number although is reported somewhere in the bottomline and can reflect in the final number. These numbers are rolling numbers, and we are very confident that whatever we have targeted for our surcharge earning, we will be meeting those targets at the year end.

• The second important aspect which I would like to share and which we have reported in our results are that as a prudent accounting measure we have provided for Rs. 67 crores in the value of equity stakes in one of our invested Company that is Sikkim Urja Limited to account for the natural disaster which happened in the month of October

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1. Let me just once again reiterate that though we have full faith in the long-term value of the project under the Sikkim Urja Limited and we have our value intact there, but as prudent accounting measures, we have taken this provision. This project is very important for us in two ways that we have a small investment of around 5.6% of the total equity and we have a 840 MW of a long term PPA with four of the states and we are confident that we will give you good news soon when the project will restart generation and we will be in a position to supply to those states.

Related to other areas where we are operating, let me just tell you both the subsidiary Company has done well. The generation in PTC Energy Limited has exceeded what we have done in the similar quarter last year and we are confident that this kind of performance will continue in future as well. Related to PTC Financial Services, we have maintained our profitability in that organization and the last but not the least the newest one, our associate, in HPX, we are doing well and I would like to share one very important development in this regard and that is something which you all have asked me and expected this to happen in the past, The Central Electricity Regulatory Commission has allowed the pilot project for market coupling to take place in the Grid India, and they are expected the result to be submitted to Regulatory Commission so that this market coupling can be enabled for all the three exchanges and the market can be coupled. So, this is a very important development and then that can lead to a very positive outcome for the Company and our investment in the HPX.

What I have maintained in the past that the trading mix should be around 50% from long term and medium term and around 50% from the shorter term, although slightly we are skewed towards shorter term this year, but we have maintained a very good mix during this quarter as well. I have maintained it in the past that our core focus is to increase the trading margin and we have maintained or rather increased our trading margin, for 9 months ending December, 2023, to 3.52 paisa per unit, which is substantially higher compared to the previous quarters and we are maintaining our position that those trading volumes which are not giving the Company the right kind of returns are need to be seen and if the cost of servicing the customer is more than the margin we earn, we are not very keen to take those kind of transactions and we have maintained that strategy in this quarter as well.

So, with these opening remarks, I will be available for answering other questions.

But with these opening remarks, let me hand it over to my CFO, who will give you the brief and the exact numbers what we have achieved during the quarter and 9 months.

Pankaj Goel:

Thank you, CMD sir. Good evening to all of you.

Now, I will go through the “Financial Results” for the Quarter and 9 months ended December ‘23 on a standalone and consolidated basis:

First, I will go through the “Financial Performance” on a Standalone basis for the Quarter:

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In the quarter, volume has decreased by 4% to 14.9 billion units from 15.5 billion units. As CMD has already explained, the slight fall in the million units is due to two factors mainly, one that due to damage of our Teesta project which has given no generation in this quarter and second on account of lower import of power from Bhutan. So, these are the two main factors.

The total operational income has decreased by 23% to Rs. 109 crores from Rs. 143 crores. Although as CMD has already explained, our core operating margin has increased to 3.43 paisa from 3.09 paisa per unit, but the total operational income has gone down due to surcharge as sir has already explained. So, likewise the profit before tax has also decreased by 19% to Rs. 85 crores from Rs. 105 crores. PAT has decreased by 19% to Rs. 63 crores against Rs. 78 crores in the corresponding quarter. The total other comprehensive income has decreased to Rs. -4 crores from Rs. 77 crores in the last quarter. So, the total other comprehensive income has already been explained that due to damage of the project to Sikkim Urja, due to flash flood in Sikkim arising out of a cloud burst accordingly an estimated reduction of Rs. 67.49 crores in value of investment have been accounted for in other comprehensive income. Earnings per share for the quarter stood at Rs. 2.12 as compared to Rs. 2.63 for the quarter.

So, now I will go through the nine months Results on a standalone basis:

Volume has increased by 5% to 56.8 billion units from 54.2 billion units. Our total operational income has increased by 5% to Rs. 422 crore from Rs. 401 crore. As sir has already explained our core margin has increased to 3.52 paisa per unit from 3.28 paisa per unit. Profit before tax has increased by 28% to Rs. 371 crore from Rs. 289 crores. Profit after tax in the same lines has also increased by 33% to Rs. 286 crore from Rs. 214 crore in the corresponding 9 months. Total other comprehensive income has increased by 2% to Rs. 218 crore from Rs. 214 crore. Earnings per share for the 9 months stood at Rs. 9.66 as compared to Rs. 7.24 in the last quarter.

Now, I will go through the “Consolidated Results”:

First on the Quarter basis:

Volume has decreased by 4% to 15 billion units from 15.6 billion units. Profit before tax has decreased by 8% to Rs. 131 crores from Rs. 142 crores. Profit after tax has decreased by 7% to Rs. 97 crores from Rs. 104 crores. Total other comprehensive income has decreased by 72% to Rs. 29 crores from Rs. 104 crores. Earnings per share for the quarter stood at Rs. 2.68 as compared to Rs. 3.1.

Now, I will go through the 9 months Consolidated Results:

Volume has increased by 5% to 57.3 billion units from 54.6 billion units. Profit before tax has increased by 17% to Rs. 594 crores from Rs. 509 crores. The profit after tax has also increased by 17% to Rs. 442 crores from Rs. 378 crores. Total other comprehensive income has slightly decreased by 1% to Rs. 373 crores from Rs. 378 crores. Earnings per share for the 9-month stood at Rs. 13.2 as compared to Rs. 11.11 in the last 9 months ended.

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Thank you.

Moderator: Thank you very much. We will now begin the question-and-answer session to ask a question. We will take the first question from Shivan Sarvaiya from Humiviction Investment Advisors LLP. Please go ahead. Shivan Sarvaiya: I will just say my couple of questions. So, the first question is, sir, what would be the additional provisioning that would be required to be done for Sikkim Urja? Dr. Rajib Kumar Mishra: As far as the Sikkim Urja is concerned, actually let me share with you the current development. The project as area is under maintenance or they are going to repair it and they have entered into the main building and all the equipments are intact, the power plant is intact and the other areas also they are trying to repair as early as possible. So, all the information what was available to the Company and the management, they have done provision of Rs. 67 crores and we don't expect anything else at this point of time whatever information is available with us. Shivan Sarvaiya: And sir, the other question that I had is that when we see the power sector which is growing, but when we look at our volumes, we don't see that in our volumes, we see de-growths, so sir what is the exact reason for this? Dr. Rajib Kumar Mishra: Now exactly, as CFO has explained, there are two factors where we have seen the volume in the 3rd Quarter not growing to the expectations we had, but again in the month of January as I suggested, we have a growth of around 19% in the volume. So, if you compare the growth of the market as well as the power sector, we are almost doing, we are at parity or maybe slightly high. Moderator: Thank you. We will take the next question from Suraj Navandar from Prithvi Finmart Private Limited. Please go ahead. Suraj Navandar: Sir, my question was on market coupling, when the market coupling will be implemented, the job of an exchange will remain only to procure the buy and the sell bridge, so what differentiation will be there between IEX, HPX or third exchange? Dr. Rajib Kumar Mishra: Yes, exactly. Your question is to the point. We are saying that based on the service, what you rendered to your clients, the clients will choose the exchange and not because you are having the first exchange you ask that the customers are sticking to it. So, with the price discovery being transferred to Grid India, the exchanges will get the market, or their share based on the service what they are rendering to the customers and we are very hopeful that the third exchange which is HPX promoted by PTC will get its pie because of its differentiation in these services what we can render better than any other exchange. And as far as the value by the exchange, exchanges are known for the innovation, and they will have to come out with innovative products each time the customer wants it rather than bring the price discovery where it can be done by anywhere else also. So, market coupling is a good thing what we expect is going to take place in this country soon.

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Suraj Navandar: Sir, in that case, let us say, IEX is one product, or we introduce some new product and let us say other exchanges don't have it, then how will the market coupling will work? Dr. Rajib Kumar Mishra: Right now, they have started with RTM, then they will ship to DM, they had market where all the three exchanges are operating. If our exchange is having a unique product, then the other exchanges will not compete. That product will be sold only by that exchange. Suraj Navandar: And how difficult it is to introduce a new product, let us say, we introduce a new innovative product, how difficult it will be for IEX or another exchange to just replicate that product? Dr. Rajib Kumar Mishra: No, again, if you have to customize a new product, you will be a pioneer in that area and you will get the advantage, just the way you are seeing IEX has a market share which is much higher than the two exchanges. So, if somebody comes out with a new product which others will be bringing new products, you will find they will be the leader. Moderator: Thank you. We have a next question from Rohan Desai, an Individual Investor. Please go ahead. Rohan Desai: So, as an investor, I am happy to see the upfront accounting disclosures as well as the points mentioned in the Company notes and we expect it to continue in the near future. So, I have a couple of questions, so first one is that when can we expect to receive the sale value of PEL sale to ONGC and the second one is that how do we plan to further enhance the shareholder value? Dr. Rajib Kumar Mishra: The first question is a very direct question. I can answer you straight away that PEL stake sale to ONGC is on track and things are moving. It takes a little time when you are doing the block deal or the entire stake on sale and we have to complete all the exercises before we call for the EGM for the shareholder and that is exactly the position we are in right now and we are very hopeful that in this financial year, we will be closing this deal. The second aspect is value addition to the Company. I mentioned that we are looking forward to the new products which we are trying to introduce, and it is not only the investment we had in HPX, but we are also trying to find out new innovative products where the Company will have its niche. Moderator: Thank you. The next question is from Prashant Talpade from ISG Securities. Please go ahead. Prashant Talpade: I have two questions. My first question on, why does PTC India consider existing the power trading business when distribution discoms have to the option to purchase power directly from discoms? And my second question is what are the benefits Gencos drive from trading with PTC India and similarly discoms? Dr. Rajib Kumar Mishra: No, intermediaries are globally recognized as the driver for the market and if I need to explain why intermediaries or a power trader or a solution provider is needed, that is a fundamental question you are asking, but let me assure you that PTC has added lot of value to its customers, both buyers and sellers in the past and we continue to do that and we are market leader and we are very proud to say that the power market today as what it is today is created by PTC. We are the first part trader, and we are the first promoter or the first exchange of the country and the

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third exchange of the country and need not to mention that they drive what we have or 12% or 13% of the market share this power market has today was initiated by PTC and it will continue to grow in future as well.

Moderator: Thank you. The next question is from Preet Nagarsheth from Wealth Finance. Please go ahead. Preet Nagarsheth: Sir, the question I had is that once you receive the proceeds from ONGC within the financial year, the transaction that is completed, what are the plans to utilize the equity component of that proceeds? Dr. Rajib Kumar Mishra: Preet, your question is very relevant, and I have replied this question in the last analyst call also. Here, I would like to repeat that we have a clear written down dividend declaration policy, so the investors can get benefit from such kind of a policy and the decisions taken in favor of our shareholders. But the important thing is the business is growing and so are the new products which we are thinking of. Once these things are being planned at the strategy level, once these things are finalized, we will declare what we have in our mind when we are investing in anything which is for the business growth, but important thing is everything is well planned and the capital allocations we are trying to do, so that once we get this equity return, we can deploy at the most profitable places and for the benefit of our shareholders. Preet Nagarsheth: So, sir, given that next year is the 75th year for the Company, should we expect Rs. 20 to Rs. 30 dividend coming our way from these proceeds? Is there a possibility? Dr. Rajib Kumar Mishra: Preet, asking a very interesting question, but you yourself must be knowing that it is very difficult to answer these kind of questions, but I said that we will keep in our mind the importance of shareholders for the welfare of anybody who was with this Company for a longer period. For long 25 years if the shareholders are with us, we do take care of their interest. Moderator: Thank you. We have a next question from Vishal Mehta from Wealth Guardian. Please go ahead. Vishal Mehta: Sir, I just had three questions. The first question is over the last two-year ends, we have had about Rs. 490 crores and Rs. 870 crores lying in the current account. We are losing on the interest income. Is this because of poor cash management or there is some business need which is forcing us to do this? Dr. Rajib Kumar Mishra: Anything else Vishalji you have to ask? Vishal Mehta: Yes, the second question was related to the market coupling. Now we know that HPX is going to benefit out of it, but what will be the impact on our standalone trading business? And one more question, if I can squeeze in is that do we have any plans of stake sale in PFS at all? Dr. Rajib Kumar Mishra: Yes, I will answer these two parts, the second and third question and then I will hand it over to CFO to answer the first part. About the treasury management, CFO will be answering. For the second and third question, let me tell you that the HPX is going to get the market share for the

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	exchange related business where we have decided that if, I have already mentioned that the cost
	of service is more than our earnings or the margin, we are not undertaking that. That means we
	are not losing any business even if it goes to the exchanges. The second part, what you asked is
	the market coupling part. HPX certainly will get the benefit of it and what was the third question
	you said?
Vishal Mehta:	PFS.
Dr. Rajib Kumar Mishra:	PFS, we have already mentioned that we have not decided that we are not going to sell this stake.
	It is on pause. We can take one at a time. So, PEL is in the advanced stage as you all are aware.
	Then, there are two other things which we have in the pipeline including the stake share in PFS.
	At the appropriate time, we will share with you what the decision of the board is and how we
	are going to take it up. Now, I hand it over to CFO to answer your treasury management part.
Pankaj Goel:	So, you are right that for the last two years you are in the balance sheet on a closing date of 31st
	March, you must be seeing the balances in our current accounts or other investments, but as you
	know that for every business to grow, we need a working capital. So, whenever we deploy, it
	means that at that point of time there was cash, but as soon as if the cash is reducing so that is a
	good sign that it means our business is growing and more and more working capital is being
	deployed in the business which we are doing. And as far as the return is concerned, that on fixed
	deposits you may be knowing that we may be earning around 6%-7%, but as we deploy our
	money into the business, so we get an instant rebate of 2% and we also earn some such sort of a
	surcharge in case there is a delay of 15%. So, if you analyze that 2% rebate, we are earning at
	least 24%. So, that means our working capital means that there should be less and less cash in
	our balance sheet, so that is the point which I wanted to explain regarding the cash availability.
Moderator:	Thank you. The next question is from Vipulkumar Shah from Sumangal Investments. Please go
	ahead.
Vipulkumar Shah:	Sir, my question is you said that surcharge is a rolling item, so can you give the guidance for
	surcharge for entire financial year, although surcharge income has dipped in this quarter, but
	what should be the approximate surcharge figure we should work with?
Dr. Rajib Kumar Mishra:	Vipulji, I have mentioned that when I say that surcharge income is accounted for on accrual
	basis. Once it hits your account we generally take that into account. So, that is exactly the
	meaning what I meant and when I say that it is a rolling thing means whatever is outstanding, if
	it is the surcharge income is accrued on that, that will be taken into account. Giving guidance
	for fourth quarter or for the annual number will not be prudent and I would not like to go into
	that area.
Vipulkumar Shah:	And sir, my second question is regarding the benefits out of this coupling, so you have said that
	it will benefit us, but if you can briefly explain how it will benefit, particularly trading business
	of PTC?

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Dr. Rajib Kumar Mishra: When I was saying that market coupling will benefit us means we have promoted the third power exchange, which is where we have almost 24% of stake and we are the major promoter of that exchange and that is in the nascent stage right now. It started operation just almost 14-15 months back or 18 months back and the initial months are encouraging. And we expect that will this can give a really good fight to the first power exchange that is IEX in the country and we will get a major market share in the exchange business. So, our investment in that exchange, we are expecting to give us a good return in future and that is the reason why I said it is important investment for us and it is going to benefit the Company. As far as the trading business is concerned, the growth of exchanges brings different kind of products in the market. Bilateral market will always remain, and it will have its own importance and trading will continue in the form and format which will keep on changing in due course of time with the evolving market. Vipulkumar Shah: What is the current market share of HPX? Dr. Rajib Kumar Mishra: HPX in some of the segment, they have almost one third of the market and in the area where there is liquidity issues, they have lower market share where they can improve with the market coupling and they expect that at least one third to half of the market share should come to that exchange. Vipulkumar Shah: And sir, lastly, can you quantify what should be our margins from long term and medium-term deals and short term deals because in your presentation the figure given is blended one? Dr. Rajib Kumar Mishra: We will clarify just a minute. I mean in the long term, what is the margin and in the shorter term, CFO will clarify what is the margin currently we have for 9 months as well as for the quarter. Pankaj Goel: So, for the quarter in our short-term trade, our trading margin was including the bilateral trade in the short term and the exchange part is 0.84 paisa and for medium term it is around 1.72 paisa on a long-term trade, it is 7.38 paisa. Vipulkumar Shah: For 9 months also. Pankaj Goel: For 9 months, for December ‘23, on a short term, including bilateral and exchange is 0.75 paisa, for medium term again, it is 1.73 paisa, for long term trade it is 6.99 paisa and average is 3.52 paisa for December 9 months. Moderator: Thank you. We will take some text questions now. The question is from Suraj Navandar from Prithvi Finmart. How much is the cash balance on the balance sheet as on Q3 FY24? Have we received money from ONGC? How are we planning to use cash balance? Pankaj Goel: So, as regards the first question, our net cash balance as on 31st December was around Rs. 530 crores. Dr. Rajib Kumar Mishra: And regarding the ONGC sale, we clarified that the deal is yet to be completed, so no cash has hit to PTC till this entire transaction is over and the deployment of once we get the equity portion

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of it, I have already answered this question, we will let our investors and analysts more details on this. Moderator: Thank you. Next question is from Rajesh Shah from Sayaji Industries Limited. What is the progress in sale of PTC Energy subsidiary of PTC India Limited? Do we require the approval of shareholder? When are we planning to get the same? Are all other conditions fulfilled? Dr. Rajib Kumar Mishra: So, first question, we have already answered. So, second part is yes, we require our shareholder’s approval, and we will come to for the notification of the shareholder at EGM as early as possible. And the third is once that is done, we are in the final stages of completing all the condition precedent and once that will be complete we will go for the notification of the EGM. Moderator: Thank you. Next text question is from Narendra Khuthia from RoboCapital. What was the revenue and PAT for HPX for this quarter as well as 9 months FY24 and what are our plans for HPX for the next couple of years? Pankaj Goel: So, as regards, the HPX revenue for the quarter and 9 months, for the quarter, their revenue from operations was around Rs. 6 crores and for 9 months their revenue from operation was Rs. 27.46 crores. Dr. Rajib Kumar Mishra: As far as the future plan of this Company, we have already shared with you in previous calls, but to reiterate the thing, we want it to be the most innovative, the most modern technologically advanced exchange with the backing of with three of the most reputed institutions in the country that is ICICI Bank, PTC India Limited and Bombay Stock Exchange and the present infrastructure what has been created for this exchange is one of the world class, both in terms of the hardware and software and last but not the least, the service delivery what we have seen in last 18 months is also far superior compared to other exchanges. So, we look forward and to the market coupling, better price discovery in the market and level playing fee, so that this exchange can emerge as the number one in the country. Moderator: The next text question is from Dungar Kasandra. As per Q3 results, PTC India has some plan for sale of PTC Energy for Rs. 900 plus crore and instructive value, Rs. 2,200 plus crore, what would result as profit or loss and amount thereof? Dr. Rajib Kumar Mishra: At this point of time, let this figure hit our accounts and then we will be in a better position to share with you what is the profit loss because at this point of time, it is prudent not to answer which is like a hypothetical question at this point of time. Moderator: Next question is from Ragini Pande from Elara Capital. Short-term volumes traded on PTC is roughly what percentage the total volumes traded on the exchanges? And the second question is, can you share the financial for HPX for Q3? Pankaj Goel: Financials of Q3, I have already explained that for the quarter, revenue from operation was around Rs. 6 crores and the HPX profit before tax was around Rs. 8 lakhs, for the 9 months

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ended their revenue from operation was Rs. 27.46 crores and their profit before tax was around Rs. 9.92 crore. And as regards the exchange percentage in our total volume, it accounts for around 53% of the total units we have traded in this quarter.

Moderator: Thank you. We have a next question from Manoj Pande, an individual investor. Please go ahead. Manoj Pande: Sir, my question is regarding PTC Financial Services. Sir, business wise, the Company is looking very bad, although it had some problems of course recently, but in the last 5 years, 5 years back, it has a book size of Rs. 13,500 crores, now it has declined to almost Rs. 6,500 crores despite a strong team deployed over there and no visibility is being seen when we go to the investor meet over there, they say that the Company’s parent Company is planning to deploy a CEO over there, but no concrete answer is being given. What is your plan about the PFS, sir? How can the Company recoup its business and go in a growth momentum phase? Currently, its book size is falling every quarter since last 5 years. How can you correct this asymmetry with your subsidiary?

Dr. Rajib Kumar Mishra: Manojji, generally we say that the listed companies, the questions related to PFS are being answered in the earnings call in PFS, but as because you are asking as an investor in PTC, let me tell you that we keep at arm's length, we have a major investment in that Company and the Company in recent times have met all the regulatory requirements and they are trying to revive their business plan. So, whatever your worries are can be taken care of. As far as the regular management is concerned recently there are major 3 or 4 senior level inductions in the Company and they are planning to get a full-time MD and CEO soon. So, this is what I can share at this point of time. As far as their business growth and plan and strategy, I think the Company will be in a better position to answer you.

Manoj Pande: Sir, as a parent Company, you must be monitoring their performance, so why didn't you? Your Company had been taking action in last 5 years when the business was dropping from Rs. 13,500 crore to Rs. 6,500 crores?

Dr. Rajib Kumar Mishra: No, let me tell you, the Company is having a close watch, and it is being monitored and it is also being seen that the growth of that Company should start from here on.

Moderator: Thank you. The next question is from Chanamallu Halagodi, an Individual Investor. Please go ahead.

Chanamallu Halagodi: Sir, I am the very serious investor in PTC India Company. On the basis of that, you are concentrating mostly on your core business. I invested in your Company; I bought 7500 shares. As a small investor, I bought 7500 shares so but since 3 to 4 years I am observing that the divestment of PTC India Financial Service is lagging behind. So, what timeframe we will take to complete the divestment process of PTC India Financial Services?

• Dr. Rajib Kumar Mishra: As I just mentioned in my earlier answer that we are taking in one by one, and PTC Energy is at the advanced stage. Once that is complete, we have never mentioned that we are not going to

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PTC India Limited February 16, 2024

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take it up, but we have put on pause or on hold the divestment of PTC Financial Services and we will announce the divestment once this process is complete and it is cleared by the board.

Chanamallu Halagodi: You are serious in this divestment of PTC India Financial Services? Dr. Rajib Kumar Mishra: I know, we appreciate your concern and we know that you are a serious investor and whatever you say today, it means a lot to us. Moderator: Thank you. We will take one text question from Vipulkumar Shah from Sumangal Investments. This question was raised by one earlier participant also when power is available on exchanges why any discom should you give you spread of 3 to 4 paisa. What benefit they got by buying power through you? Dr. Rajib Kumar Mishra: Again, exchanges are providing power to a customer for a much shorter period, and you must have seen that the fluctuations in the power prices in the exchanges are, it is very significant whereas for a bilateral contract it is much stable and globally it has seen that a part of their total power procurement, they do only from the exchanges and rest it is done on a bilateral basis for keeping the portfolio stable. So, intermediaries and trading companies are relevant throughout the world, and it will continue to be relevant in the Indian context as well. Moderator: Thank you. As there are no further questions, I would now like to hand the conference over to Dr. Rajib Kumar Mishra for closing comments. Over to you, sir. Dr. Rajib Kumar Mishra: Thank you very much and all the questions what we got today from our investors and analysts friends were very insightful, meaningful and given lot of insights to us, for our further course of business. We all take all your advice and your questions very seriously and we would like to get it implemented for our future business. Let me once again reassure you that the entire top management of PTC India Limited is working for the benefit of our shareholders and we would ensure that the interest of shareholders is of highest priority for the Company. Thank you very much.

Moderator: Thank you, sir. Ladies and gentlemen, on behalf of PTC India, that concludes today's session. Thank you for your participation. You may now exit the meeting.

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