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Reported PAT declined 47% YoY; adjusted PAT up 12% YoY
PTC India's (PTCIN IN) Q4 reported revenue (standalone) declined 1.4% YoY to INR 33bn. Surcharge income in Q4 rose 24% YoY to INR 930mn. Net rebate rose 3.4% YoY to INR 300mn in Q4FY24. Core margin increased 1% to 2.94 paisa per unit versus 2.91 paisa per unit last year. Traded volumes increased 10% YoY to 18,024mn units (MU). Reported PAT declined 47% YoY to INR 829mn. PTCIN reported an exceptional item of INR 205mn in Q4 on account of provision created against the amount deposited with a supplier. An exceptional item of INR 500mn was reported last year on account of impairment provision. Factoring in exceptional item, adjusted profit rose 12.3% YoY to INR 1,224mn.
Volume mix - Keen on pivoting to high-margin segments
Volume of short-term trades increased 17% YoY to 11,789MU and volumes of medium- and long-term trades declined 1.6% to 6,235MU. Short-term volume comprised 65% of total volume in Q4FY24 and long- and medium-term volume 30% and 5%, respectively.
PTCIN seeks to keep the proportion of short-term trades and long- and medium-term trades at 50-50. Long- and medium-term segments are high-margin segments for PTCIN.
Valuations: Maintain Reduce; TP unchanged at INR 207
We revise FY25E-26E earnings and maintain Reduce with TP unchanged at INR 207.
We value the standalone operations at INR 119 per share on 9.0x FY26E P/E. We ascribe a value of INR 49 per share to PTCIN's investment in PFS, INR 25 per share to its investment in PTC Energy, INR 7 per share to its investment in HPX and INR 7 per share for cash and other investments.
Shares of PTC India Limited was last trading in BSE at Rs. 203.80 as compared to the previous close of Rs. 209.55. The total number of shares traded during the day was 363504 in over 5619 trades.
The stock hit an intraday high of Rs. 206.85 and intraday low of 199.05. The net turnover during the day was Rs. 74306781.00. |
