Thanks. HPX launch seems to be delayed. I hope HPX starts with a bang in peak summer season. The update seems good except that there is no mention about the sale of PC Energy.
Sale of PTC Energy is a key monitorable to confirm that PTC management walks the talk on sale of non-core assets and to not make such non-core investments in future.
Disclosure - Invested so views are biased.
PTC India Finance Board meeting was rescheduled without any explanation and for last 1 week there is no news in media on reason for deferral while management has also not provided any reason / next Board meeting date.
PTC India’s results are also affected due to PTC India Finance and as a subsidiary , ultimately the corporate governance issue at PFS impacts PTC as well.
Hoping for clarity on Q3 results by next week other wise need to review the investment.
Disclosure - Invested so views are biased
After ILF&S saga it is clear that these infra lenders owned by quasi government bodies are landmines waiting to explode.
PTC India result is not so good. The trading margin is quite low for Q4 and the net profit seems to be entirely from surcharge income. During the call, management though was quite confident of sustaining surcharge income despite new central govt. rules on Late Payment Surcharge (LPSC).
Divestment of PTC Energy seems to have stalled as PTC expects better valuation and hopefully in interim the generation / net result should be better. Though management mentioned that AP is still not paying at the PPA rate due to cash constraint.
HPX start is an important milestone though there is no clarity if PTC can shift volumes.
PFS forensic audit report will be a key event as a clean chit and good result/dividend will help PTC India as well.
Disclosure - Invested so views are biased
