PTC India Limited is a key player in power trading and investment, holding a 41% market share in electricity trading since its inception. The company has subsidiaries that provide financing solutions within the energy sector and has maintained a strong financial position, with a current market capitalization of Rs 2,911.24 crore and a reported net profit of Rs 96.31 crore for Q3 2014. PTC India is recommended for investment due to its sound financials, growth potential in the industry, and zero debt status.

2. Company Details
PTC India Limited (PTC) is engaged in the business of power and investment. The Company
operates in two segments: Power trading and Investment. The Company’s subsidiaries include
PTC India Financial Services Ltd, which is a non-banking finance institution is promoted by
PTC India Ltd (PTC) to make principal investments in, and provide financing solutions for
companies with projects across the energy value chain, and PTC Energy Ltd, which is
engaged in develop asset base taking in to its sphere the business of generation, supply,
distribution, transmission and dealing in all forms of energy including import and export of coal,
conversion of coal/ fuels in to electricity, fuel linkages and provide advisory services in energy
sector and energy efficiency.
PTC India, a Government of India initiative, is a pioneer in starting a power market in India.
The company has maintained its leadership position in power trading since inception. At
present, PTC has around 41% share of the trading market. PTC has also been authorized by
the Government of India to trade electricity with Bhutan and Nepal. PTC has maintained No. 1
position in electricity trading since sustained trading began in 2000-01. PTC today is not just
the leading power trader in the country, but also the co-promoter of 1st National Power
Exchange in the country besides diversifying into the unique role of a Complete Energy
Solutions Provider.
The current market capitalization stands at Rs 2,911.24 crore. The company has reported a
standalone sales of Rs 4,193.32 crore and a Net Profit of Rs 96.31 crore for the quarter ended
Sep 2014.

3. Category No. of Shares Percentage
Promoters 48,000,000 16.22
Foreign Institutions 75,892,848 25.64
Financial Institutions 61,693,170 20.84
Nbanks Mutual Funds 46,757,153 15.80
General Public 38,520,372 13.01
Other Companies 22,699,690 7.67
Foreign NRI 2,378,688 0.80
Others 66,400 0.02
Market Cap (Rs Cr) – 2911.24
Company P/E – 9.11
Industry P/E – 14.5
Book Value (Rs) – 84.74
Dividend (%) – 20 %
EPS (TTM) – 10.13
Dividend Yield (%) – 2.03 %
Face Value (Rs) - 10
Share Holding Pattern Financial Details

4. Balance Sheet
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Sources Of Funds
Total Share Capital 296.01 296.01 294.97 294.97 294.55
Equity Share Capital 296.01 296.01 294.97 294.97 294.55
Reserves 2,212.40 2,029.67 1,955.14 1,885.21 1,801.69
Networth 2,508.41 2,325.68 2,250.11 2,180.18 2,096.24
Total Liabilities 2,508.41 2,325.68 2,250.11 2,180.18 2,096.24
Application Of Funds
Gross Block 63.25 62.86 60.90 61.50 60.40
Less: Accum. Depreciation 33.28 30.16 26.78 24.02 19.25
Net Block 29.97 32.70 34.12 37.48 41.15
Capital Work in Progress 0.08 0.00 0.00 0.55 1.41
Investments 959.85 924.49 823.54 1,052.67 876.01
Inventories 0.00 18.31 41.45 0.00 0.00
Sundry Debtors 2,085.69 2,142.11 2,581.01 977.89 531.02
Cash and Bank Balance 544.66 353.46 45.82 162.78 43.01
Total Current Assets 2,630.35 2,513.88 2,668.28 1,140.67 574.03
Loans and Advances 94.59 50.30 86.03 33.19 51.63
Fixed Deposits 0.00 0.00 0.00 524.96 951.36
Total CA, Loans & Advances 2,724.94 2,564.18 2,754.31 1,698.82 1,577.02
Current Liabilities 1,134.34 1,138.10 1,300.57 554.60 355.94
Provisions 72.09 57.59 61.29 54.75 43.42
Total CL & Provisions 1,206.43 1,195.69 1,361.86 609.35 399.36
Net Current Assets 1,518.51 1,368.49 1,392.45 1,089.47 1,177.66
Total Assets 2,508.41 2,325.68 2,250.11 2,180.17 2,096.23
Contingent Liabilities 1,162.68 424.79 213.88 128.82 129.89
Book Value (Rs) 84.74 78.57 76.28 73.91 71.17

5. Profit and Loss Account
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Income
Sales Turnover 11,510.71 8,856.87 7,650.28 8,997.28 7,770.34
Net Sales 11,510.71 8,856.87 7,650.28 8,997.28 7,770.34
Other Income 58.66 11.89 50.77 62.74 73.77
Stock Adjustments -18.31 0.00 0.00 0.00 0.00
Total Income 11,551.06 8,868.76 7,701.05 9,060.02 7,844.11
Expenditure
Power & Fuel Cost 10,964.00 8,408.91 7,477.00 8,837.08 7,675.06
Employee Cost 15.46 12.97 11.90 11.45 8.29
Other Manufacturing Expenses 164.51 163.99 0.00 0.00 0.00
Miscellaneous Expenses 35.49 100.99 16.01 2.27 12.94
Total Expenses 11,179.46 8,686.86 7,504.91 8,856.27 7,705.67
Operating Profit 312.94 170.01 145.37 141.01 64.67
PBDIT 371.60 181.90 196.14 203.75 138.44
Interest 2.75 0.92 25.97 2.12 1.33
PBDT 368.85 180.98 170.17 201.63 137.11
Depreciation 4.20 4.21 4.46 5.03 5.52
Profit Before Tax 364.65 176.77 165.71 196.60 131.59
PBT (Post Extra-ord Items) 364.22 178.46 165.59 196.80 131.80
Tax 112.99 49.72 45.21 58.28 37.69
Reported Net Profit 251.23 128.74 120.37 138.52 94.10
Total Value Addition 11,179.46 8,686.86 7,504.90 8,856.27 7,705.67
Equity Dividend 59.20 47.36 44.25 44.25 35.35
Corporate Dividend Tax 7.77 8.05 7.18 7.18 5.87
Per share data (annualised)
Shares in issue (lakhs) 2,960.08 2,960.08 2,949.74 2,949.74 2,945.47
Earning Per Share (Rs) 8.49 4.35 4.08 4.70 3.19
Equity Dividend (%) 20.00 16.00 15.00 15.00 12.00

6. Dividend History

7. Index and Company Comparison

8. Company Forecast

9. PBIT – 2.66 v/s 1.86
RoCE – 14.47 v/s 7.63
RoE – 10.4 v/s 5.64
Net Profit Margin – 2.17 v/s 1.45
Return on net worth – 10.01 v/s 5.53
Interest Cover – 132.02 v/s 194.16
Current Ratio – 2.26 v/s 2.14
Reserves – 2212.4 cr v/s 2029.67 cr
PAT – 251.23 cr v/s 128.74 cr
Total assets – 2508.41 cr v/s 2325.68 cr
Net sales – 11510.71 cr v/s 8856.87 cr
Book Value – 84.74 cr v/s 78.87 cr
Days BSE NSE
30 92.67 92.69
50 94.62 94.64
150 90.29 90.29
200 87.00 87.01
Simple Moving AverageImportant Ratios

10. Recommendations
Buy PTC India Ltd. at current or lower market levels
Reasons for the recommendations are :
Sound financial position of the company.
Huge growth potential in the industry.
Under performance of the stock of the stock in the current market bull run.
Good client base include CESC and JSPL Ltd.
Governments approach towards developing power industry.
Improved QoQ performance of sales.
Zero Debt Company.
Promoter holdings in its subsidiary companies.