PTC India Set To Be Debt-free With PTC Energy Divestment, Affirms CMD

PTC India, a prominent provider of power trading solutions, would soon become debt-free following the divestment of PTC Energy, a subsidiary, to ONGC for an enterprise value of Rs 2,021 crore, as reported by PTI.

Announced in October, ONGC's winning bid for PTC Energy's entire interest has an enterprise value of Rs 2,021 crore.

Rajib K. Mishra, Chairman and Managing Director of PTC India, conveyed that the company will be almost debt-free following the transfer of PTC Energy's assets, the PTI reported.

The enterprise value includes the Rs 925 crore bid from ONGC as well as an amount of debt that exceeds Rs 1,100 crore that will be taken on by the oil corporation after the sale.

Thanks to the Late Payment Surcharge programme, PTC India's outstanding debts have drastically decreased, positioning the company as one that is no longer dependent on loans for its working capital needs.

Mishra emphasised that PTC India is deliberately distancing itself from non-core operations in order to become an asset-light company.

PTC Energy's divestment is in line with the company's plan to exit non-core businesses, which is to improve core margin per unit instead of just growing trade volumes.

According to data, there was a notable 22 per cent increase in the per unit margin (which includes surcharge and rebate income), which went from 6.07 paise per unit in the first half of the previous fiscal year to 7.38 paise per unit in the same time this year.

In a similar way, the per unit margin has increased from 3.39 paise per unit in the first half of the last fiscal year to Rs 3.54 paise per unit in the same period this year.

In the first half of the current fiscal year, the company's standalone core operating margin increased by 8 per cent to Rs 285 crore from Rs 234.85 crore in the same period last year.