PTC India, the country's largest power trader, is expected to report more than 5 percent growth year-on-year in first quarter profit at 46.1 crore and revenue at Rs 3,881 crore, respectively. The bottomline growth may be partially impacted due to lower Y-o-Y rebate, treasury and surcharge income.
However, according to average of estimates of analysts polled by CNBC-TV18, operating profit in June quarter may fall 2.7 percent to Rs 56 crore and margin may decline 20 basis points to 1.4 percent compared to same quarter last year.
After registering a contraction in the last two quarters in volumes (Q4FY15 volumes were down 17.3 percent Y-o-Y), PTC India is going to register good growth during Q1FY16 despite weak power demand. Analysts feel the problems related to transmissions may have been easing.
They expect trading volumes to increase by 12-15 percent driven by commissioning of new power purchase agreements (PPAs) as they believe volumes with high trading margin (Bangladesh, Meenakshi and Simhapuri) have improved both Q-o-Q and Y-o-Y.
Increased sales under long term contracts may help in resulting in higher trading margins.
Key factors to watch out for would be trading volumes & margin guidance for FY16, commissioning of projects and any development on traders being allowed to participate in long-term bids.