According to CMD, PTC India would be debt-free after the sale of PTC Energy to ONGC

A senior official said that PTC India, a supplier of power trading solutions, will soon be debt-free after selling its division, PTC Energy, to ONGC for an enterprise value of Rs 2,021 crore. In October, PTC India said that ONGC, an upstream company, had emerged as the winning bidder to acquire PTC Energy’s 100% interest for an enterprise value of Rs 2,021 crore.

Rajib K. Mishra, Chairman and Managing Director of PTC India, said in an interview that the business will practically become debt-free with the transfer of PTC Energy’s assets. According to Mishra, PTC Energy’s enterprise value comprises the ONGC’s offer of Rs 925 crore and a debt component of over Rs 1,100 crore, which will be transferred to the oil giant upon completion of the deal. He said that PTC India’s outstandings have significantly decreased as a result of the Late Payment Surcharge program, and the firm is now becoming known for not requiring loans to cover its working capital requirements.

He went on to say that PTC India is likewise exiting non-core operations and concentrating on building an asset-light company. He said that the firm is more concerned with enhancing core profit per unit than with growing trade volumes, and that the disposal of PTC Energy is a component of the plan to leave the non-core business.

Data from the first half of the previous fiscal year indicates that the per unit margin (including surcharge and rebate revenue) grew by 22% to 7.38 paise per unit in the same time this year from 6.07 paise per unit in the previous fiscal year. In a similar vein, during the first half of current fiscal year, the per unit margin grew from Rs 3.39 paise per unit in the previous fiscal year to Rs 3.54 paise per unit.

In the first half of current fiscal year, the company’s standalone core operating margin grew by 8% to Rs 285 crore from Rs 234.85 crore during the same time last year. The first company in India to launch a power market was PTC India Ltd, an initiative of the Indian government. Since its founding, the firm has continued to hold the top position in the power trading industry.

In addition to short-term trading resulting from supply and demand mismatches, the trading operations encompass long-term trading of electricity produced by huge power plants, including renewables.