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PTC India Ltd
Earnings Call Analysis
Q3-2024 Analysis
PTC India Ltd
In the warm afternoon greeting to investors, PTC India Limited shared its third-quarter results. The company reported overall sound financial numbers, with noticeable growth in margins and operating profits compared to the previous year. The operating margin from the sale of equity increased by 7% year-on-year, while there was a slight decrease in power units sold by 4% compared to last year. Despite this, the nine-month performance showcases a positive trajectory in power unit sales.
Pankaj Goel, the CFO of PTC India, reported a decrease in volume for the quarter – down 4% to 14.9 million units. Several factors contributed to this: no generation from the Teesta project and lower power import from Bhutan. Operational income fell by 23% to INR 109 crores. Even though the core operating margin increased to 3.52 paisa per unit, substantial reductions in a surcharge income of about INR 42 crores affected the total income. The earnings per share dropped to INR 2.12 from INR 2.63.
PTC India had to navigate through challenges, such as a natural disaster damaging the Sikkim Urja project, resulting in a provision of INR 67 crores accounted in the comprehensive income. This project remains of strategic importance due to a stake of about 5.6% and a long-term power purchase agreement totalling 840 megawatts with four states. The company's assurance in the long-term value of this project indicates optimism for upcoming performance once the project resumes operation.
The subsidiary, PTC Energy Limited, showed promising results with generation exceeding the previous year's corresponding quarter. Meanwhile, PTC Services maintained profitability. An exciting development mentioned was the Central Electricity Regulatory Commission allowing a pilot project for market coupling, which could result in positive outcomes for PTC's investment in HPX. This indicates an aggressive move towards innovation and market differentiation.
In alignment with the company's strategic focus on increasing trading margins, PTC India reported a substantial rise to 3.52 paisa per unit. They continue to scrutinize transactions, declining those that do not meet expected returns, reinforcing their commitment to prudent financial management and shareholder value creation. Despite a shift towards short-term trades this year, the company has effectively maintained a balanced trading mix.
On a consolidated basis, the 9-month results offered reasons for investor confidence with a volume increase of 5% to 57.3 million units and a profit before tax and after tax both escalating by 17%. However, total other comprehensive income saw a marginal decrease by 1%. The earnings per share for the nine months stood at a robust INR 13.2, higher than the INR 11.11 in the last 9 months, suggesting overall solid growth for the company.
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Ladies and gentlemen, good day, and welcome to the investor call of PTC India Limited Q3 FY '24 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 & Operations; Mr. Harish Saran, Executive Director, PTC; and Mr. Pankaj Goel, ED and CFO, PTC.
[Operator Instructions] 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.
Thank you. Good afternoon, dear investors, analysts and the shareholders of PTC India Limited.
It is indeed a pleasure to be with you this afternoon yet again with the third 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 [ equity ] is 7% above what we have done year-on-year last year. And then the million units 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 third quarter result, but in the month of January, we have a robust growth once again. And we have reported in Form 4 to the regulatory commission there.
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 INR 58 crores last year -- last quarter -- the quarter which we have -- the corresponding quarter, we have reported 16.63% as the surcharge number and there is a reduction of around INR 42 crores on this.
Let me just inform our valued investors and analysts that this is a rolling number and this surcharge is calculated on the annual basis. And what we really accrued during this quarter is reported here. So therefore, this number, although is reported somewhere in the bottom line and can reflect in the final number, these numbers are rolling numbers and we are very confident that whatever we have targeted for such earnings 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 are -- in our results are -- that as a prudent accounting measure, we have provided for INR 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 2023. 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 a prudent accounting measures, we have taken this provision.
This project is very important for us in 2 ways that we have a small investment of around 5.6% of the total equity and we have an 840-megawatt of a long-term PPA with 4 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 what 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 Services. We have maintained our profitability in that organization.
And the last but not the least, the newest one, our associates 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 a pilot project for market coupling to take place in the GRID-INDIA, and they are expecting the result to be submitted to regulatory commission so that this market coupling can be enabled for all the 3 exchanges and the market can be coupled. So this is a very important development and 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 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'll 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. Mr. Pankaj, go ahead.
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 stand-alone and consolidated basis. First, I will go through the financial performance on stand-alone basis for the quarter.
So in the quarter, volume has decreased by 4% to 14.9 million units from 15.5 million units. As CMD has already explained, the slight fall in the million units is due to 2 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 2 main factors.
The total operational income has decreased by 23% to INR 109 crores from INR 143 crores. The -- although, as CMD has already explained, our core operating margin has increased from 3.43 paisa per unit -- 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 INR 85 crores from INR 105 crores.
PAT has decreased by 19% to INR 63 crores against INR 78 crore in the corresponding quarter.
The total other comprehensive income has decreased has -- to minus INR 4 crore from INR 77 crore in the last quarter. So the total other comprehensive income has already been explained that due to the -- due to damage of our project to Sikkim Urja due to flash flood in Sikkim, arising out of a cloud burst, accordingly, an estimated reduction of INR 67.49 crores in value of investment has been accounted for in other comprehensive income.
Earnings per share for the quarter stood at INR 2.12 as compared to INR 2.63 for the quarter.
So now I'll go through the 9 months results on a stand-alone basis. So volume has increased by 5% to 56.8 million units from 54.2 million units.
Our total operational income has increased by 5% to INR 422 crore from INR 401 crore. So 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 INR 371 crores from INR 289 crores.
Profit after tax has also -- in the same line, has also increased by 33% to INR 286 crores from INR 214 crores in the corresponding quarter.
Total other comprehensive income has increased by 2% to INR 218 crores from INR 214 crores.
Earnings per share for the 9 months stood at INR 9.66 as compared to INR 7.24 in the last quarter.
Now I'll go through the consolidated results on a -- first, on a quarter basis. So volume has decreased by 4% to 15 million units from 15.6 million unit.
Profit before tax has decreased by 8% to INR 131 crores from INR 142 crores.
Profit after tax has decreased by 7% to INR 97 crores from INR 104 crores.
Total other comprehensive income has decreased by 72% to INR 29 crore from INR 104 crore.
Earnings per share for the quarter stood at INR 2.68 as compared to INR 3.1.
Now I'll go through the 9 months consolidated results. Volume has increased by 5% to 57.3 million units from 54.6 million unit.
Profit before tax has increased by 17% to INR 594 crore from INR 509 crores.
The profit after tax has also increased by 17% to INR 442 crore from INR 378 crore.
Total other comprehensive income has slightly decreased by 1% to INR 373 crore from INR 378 crores.
Earnings per share for the 9 months stood at INR 13.2 as compared to INR 11.11 in the last 9 months. Thank you.
Should we begin the question-and-answer session?
Yes, please go ahead.
[Operator Instructions] We have a first question from Prit Nagersheth from Wealth Finance.
We'll take the next question from Shivan Sarvaiya from Humiviction Investment Advisers LLP.
Am I audible?
Yes, yes, you are. Please go ahead.
A couple of questions...
You're not very clear though, Mr. Shivan. Can you speak a bit louder, please? We can hear you, but the volume is a little low.
Okay. I'll 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?
As far as the Sikkim Urja is concerned, actually, let me share with you the current development. The project has -- 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 INR 67 crores and we don't expect anything else at this point of time, whatever information is available with us.
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 degrowth. So what is the exact reason for this?
No. Exactly, as CFO has explained, there are 2 factors which -- where we have seen the volume in the third 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 the -- we are at parity or maybe slightly higher.
We have a next question from Rohan Desai.
I'm sorry, he has exited the meeting. We'll take the next question from [ Suraj Navandar ] from Prithvi Finmart Pvt. Ltd.
So my question was on the MBED, how it will benefit us? Because when -- sorry, my question was on market coupling, not the MBED. When the market coupling will be implemented, the job of exchange will remain only to procure the buy and the sell bridge. So what differentiation will be there between IEX, HPX or third exchange?
Yes, exactly your question is to the point. I mean, we are saying that based on the service, what you render to your clients, the clients will choose the exchange. And not because you are having the first exchange, you asked 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 the 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 doing the price discovery where they -- 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 so.
Sir, in that case, let's say, IEX has one product or we introduce some new product and let's say other exchanges don't have it. Then how will the market coupling will work?
No, no. Right now, they have started with RTM, then they will shift to DAM. There, a market where all the 3 exchanges are operating. If our product -- if our exchange is having a unique product, then the other exchanges will not compete. That product will be sold only by that exchange.
Okay, okay. And how difficult it is to introduce a new product? Let's say, we introduce a new innovative product, how difficult it will be for IEX or another exchange to just replicate that product?
No. Again, I mean, 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 have a market share, which is much higher than the 2 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.
We have a next question from [ Rohan Desai ], an individual investor.
Am I audible?
Yes.
Yes, yes. Please go ahead.
So as an investor, I'm happy to see the upfront accounting disclosures as well as the points mentioned in the company notes and we expect it to continue in 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?
Yes. 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's exactly the position we are in right now. And we are very hopeful that in this financial year, we'll 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.
The next question is from [ Prashant Galpare from ISG Securities ].
I have 2 questions. My first question on why does PTC India consider exiting the power trading business when distribution discounts have to the option to purchase power directly from discounts?
And my second question is, what are the benefits the gencos derive from trading with PTC India, and similarly, discounts?
No, 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 a lot of value to its customers, both buyers and sellers in the past, and we continue to do that. And we are a 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 power trader and we are the first promoter or the first exchange of the country and the 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 -- our market has today was initiated by PTC and it will continue to grow in future as well.
The next question is from Prit Nagersheth from Wealth Finance.
Yes, sir. Yes, am I audible?
Yes, yes. You are very much audible. Please, go ahead.
Okay. Sir, the question I had is that once you receive the proceeds from ONGC within the financial year, the transaction gets completed, what are the plans to utilize the equity component of that proceeds?
Prit, 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 our -- such kind of a policy and the decisions taken in favor of our shareholders.
But important thing is the business is growing and so are the new products which we are thinking of. Once it is -- 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 the 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.
So sir, should we expect, given that next year is the 75th year for the company, should we expect INR 20 to INR 30 dividend coming our way from these proceeds? Is that a possibility?
Prit asking a very interesting question, but I -- 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 and the -- 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.
We have our next question from Karthik Muthuswamy from Trident Advisors.
Since there is no response, we'll move to the next question from Vishal Mehta from Wealth Guardian.
Am I audible?
Yes, yes. Vishal, you are very much audible. Please, go ahead.
Sir, I just had 3 questions. First question is over the last 2 year-ends, we've had about INR 490 crores and INR 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?
Anything else, Vishal, you have to ask?
Yes, 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 stand-alone 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?
Yes, I'll answer this in 2 parts, the second and third question, and then I'll 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 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?
PFS.
PFS. PFS, we have already mentioned that we have not decided that we are not going to sell the stake. It is on pause. We can take one at a time. So PEL is in advanced stage, as you all are aware, then there are 2 other things, which we have in the pipeline, including the stakes here 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.
So you are right that for the last 2 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 working capital.
So whenever we deploy this, it means that the -- 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 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. And so that is the point, which I wanted to explain regarding the cash availability.
The next question is from [ Vipul Kumar Shah ] from Sumangal Investment.
So my question is you said that surcharges is a rolling item. So can you give the guidance for surcharge for the entire financial year? Although surcharge income has dipped in this quarter, but what should be the approximate surcharge figure we should work with?
[ Vipul ], I mean, 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 our account. So that's exactly the meaning I -- 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 like -- not like to go into that area.
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 on PTC?
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 this can give a real good fight to the first power exchange, that is IEX, in the country and 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 the future. And that's 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 give a 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.
What is the current market share of HPX?
HPX in some of the segment, they have almost 1/3 of the market. And in the area where there is liquidity issues, they have a lower market share where they can improve with the market coupling. And they expect that at least 1/3 to half of the market share should come to that exchange.
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.
We will clarify, just a minute, 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.
Just a minute. So for the quarter, in our short-term trade our gross -- our trading margin was -- including the bilateral trade in 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.
From the 9 months also.
And for 9 months also, sir -- just a minute. For 9 months -- for December '23, on a short term, including bilateral and exchange, it's 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 for December, 9 months.
[ Vipul Shah ], I think we have clarified.
We'll take some text questions now. The question is from [ Suraj Navandar ] from Prithvi Finmart. How much is cash balance on balance sheet as on Q3 FY '24? Have we received money from ONGC? How we are planning use cash balance?
So as regards to the first question, the -- our net cash balance as on 31st December was around INR 530 crores.
And regarding the ONGC sale, we clarified that the deal is yet to be completed. So it will be no cash has hit to PTC till this entire transaction is over. So -- and the deployment of the -- once we get the equity portion of it, we'll let -- I have already answered this question. We will let our investors and analysts more details on this.
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?
Yes. So second question -- the first question that we have already answered. So second part is, yes, we require our shareholders' approval. And we will come to -- for the notification of the shareholder, 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 notify -- go for the notification of the EGM.
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 FY '24? And what are our plans for HPX for the next couple of years?
So as regards to the HPX revenue for the quarter and 9 months, for the quarter, their revenue from operations was around INR 6 crores. And for 9 months, their revenue from operations was INR 27.46 crore.
And 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 the 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 the last 18 months is also far superior compared to other exchanges.
So we look forward to the market coupling, a better price discovery in the market and level playing field so that this exchange can emerge as the #1 in the country.
The next text question is from [ Dungar Kasundra ]. As per Q3 results, PTC India has some plan for sale of PTC Energy for INR 900-plus crore and instructive value, INR 2,200-plus crore. What would result as profit or loss and amount thereof?
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.
The next question is from Rajini Pande from Elara Capital. Short-term volumes traded on PTC is roughly what percentage the total volumes traded on the exchanges? And second question is, can you share the financials for HPX for Q3?
Financials of Q3, I have already explained that for the quarter revenue from operation was around INR 6 crores. And the HPX profit before tax was around INR 8 lakhs.
For the 9 months ended, their revenue from operations was INR 27.46 crores and their profit before tax was around INR 9.92 crores.
And as regards to the exchange percentage in our total volume, it accounts for around 53% of the total units we have traded in this quarter. And short term is around [indiscernible].
We have our next question from [ Manoj Pande ], an individual investor.
Am I audible, sir?
Yes, [ Manoj ], you are audible. Please, go ahead.
Yes. 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 last 5 years -- 5 years back, it has a book size of INR 13,500 crores. Now it has declined to almost INR 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 is -- parent company is planning to deploy a CEO over there, but no concrete answer is being given.
What is your plan about PFS, sir? How the company can recoup its business and go in a growth momentum phase. Currently, it is -- its book size is falling every quarter since last 5 years. How you can correct this asymmetry with this subsidiary?
[ Manoj ], I mean, 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 that 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 induction 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.
But sir, you as a parent company, you must be monitoring their performance. So why didn't your company had been taking action in last 5 years when the business was dropping from INR 13,500 crores to INR 6,500 crores, sir?
No, no. I mean, 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 hereon.
The next question is from [ Chenamalu Halagodi ], an individual investor.
Am I audible. sir?
Yes, yes. Please go ahead.
Sir, I'm a very serious investor in PTC India company. On the basis of that, we will -- you are concentrating mostly on your core business, I invested in your company. I bought 7,500 shares. As a small investor, I bought 7,500 shares. So -- but since 3 to 4 years, I'm observing that, the divestment of PTC Financial Services is lagging behind. So what time frame we will take to complete the divestment process of PTC Financial Services, sir?
As I just mentioned in my earlier answer that we are taking it 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 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.
You are serious in this divestment of PTC Financial Services, sir?
I know, I know. We appreciate your concern and we know that you're a serious investor and whatever you say today is -- it means a lot to us.
The next question is from Karthik Muthuswamy from Trident Advisors.
There is no response from his line. We'll take one text question from [ Vipul Kumar Shah ] from Sumangal Investment. This question was raised by one earlier participant also when power is available on exchanges, why any DISCOM should you give -- I'm sorry, why any DISCOM should you -- give you spread of 3 to 4 paisa? What benefit they got by buying power through you?
Again, exchanges are providing power to a customer for a much shorter period. And you can -- you must have seen that the fluctuations in the power prices in the exchanges are is very significant. Whereas for a bilateral contract, it is much stable. And globally also, 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 Indian context as well.
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.
Thank you very much. And all the questions, what we've got today from our investors, analyst, friends were very insightful, meaningful and have given a lot of insights to us for our further course of business. We take all your advices, 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.
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.