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.

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?

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.

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?

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.

Thank you. We will take the next question from Suraj Nav andar from Prithvi Finmart Private Limited. Please go ahead.

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?

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.

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?

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.

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?

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.

Thank you. We have a next question from Rohan Desai, an Individual Investor. Please go ahead.

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?

The first question is a very direct question. I can a nswer 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 hav e to complete all the exercises b efore 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.

Thank you. The next question is from Prashant Talpade from ISG Securities. Please go ahead.

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?

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 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.

Thank you. The next question is from Preet Nagarsheth from Wealth Finance. Please go ahead.

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?

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.

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?

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.

Thank you. We have a next question from Vishal Mehta from Wealth Guardian. Please go ahead.

Sir, I just had three questions. The first question is over the last two-year ends, we ha ve 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?

Anything else Vishalji you have to ask?

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?

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 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, 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.

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.

Thank you. The next question is from Vipulkumar Shah from Sumangal Investments. Please go ahead.

Sir, my question is you said that surcharge is a r olling 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?

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.

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.

What is the current market share of HPX?

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.

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. 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.

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.

For 9 months also.

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 a nd average is 3.52 paisa for December 9 months.

Thank you. We will take some text questions now. The question is from Suraj Na vandar 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?

So, as regards the first question, our net cash balance as on 31st December was around Rs. 530 crores.

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 of it, I have already answered this question, we will let our investors and analysts more details on this.

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?

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.

Thank you. Nex t text question is from Narendra K huthia 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?

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.

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.

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?

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.

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?

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 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.

Thank you. We have a next question from Manoj Pande, an individual investor. Please go ahead.

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 g rowth momentum phase? Currently, its book size is falling every quarter since la st 5 years. How can you correct this asymmetry with your subsidiary?

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.

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?

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.

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

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 observ ing that the divestment of PTC India F inancial Service is lagging behind. So, what timeframe we will take to complete the divestment process of PTC India Financial Services?

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 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 India Financial Services?

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.

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?

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.

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.

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.

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.