PTC India is current top loser

PTC India is currently the top loser on the BSE, down over 8% at Rs.86 with an intra day low at Rs.84.25. Its 52-week low is at Rs.52.05.

The stock has slumped on the back of its dismal set of numbers. The numbers which we declared yesterday after market hours showed a 92% (YoY) slump in net profit for Q3FY15 at a mere Rs.7 crore, down from previous Q3’s Rs.91 crore. This was thanks to the one-time provision of Rs.33  crore. This provision comes from the divestment of its long-term investment in Teesta Urja at below face value for sale/transfer. The company has stated that no matter how it is divested, it will necessarily incur a loss of Rs.6.52 crore and if all other shares are also sold, it has pegged the loss at Rs.33 crore. This apart, there is the base effect also at play – in previous Q3 the company has a surcharge of Rs.72 crore, which was outstanding due received from UP and that naturally bolstered the profit.