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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Ladies and gentlemen, good day, and welcome to the investor call of PTC India Limited Q1 FY '24 Earnings Conference Call. The management team at PTC India is led by Dr. Rajib Kumar Mishra, Chairman and Managing Director, PTC; Dr. Mishra is accompanied by Mr. Harish Saran, Executive Director, PTC; and Mr. Pankaj Goel , CFO, PTC. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Dr. Rajib Kumar Mishra for opening remarks. Thank you, and over to you, sir.
Thank you. Good afternoon, all the investors who are present today and all the analysts who has taken out their time to cover our -- this analyst call. And I'm really pleased to come back to you to announce our Q1 FY '24 results. As you must have noted, the trading volume has increased by 60%, and we have crossed 20 billion unit this quarter. And the core margin has also increased by 10% to INR 64.49 crores, and the PAT has gone up by almost 20%, 21%. So with this, what we started last year that the quality trading has to be done and we have to come back to a level, which we have seeded last year. We have not only crossed it by 16%, but also given a good profit after tax in this quarter. Couple of surprises. This quarter was one that the cross-border trade, which we expected to be more because we see that we start getting the snow melted hydrology in the month of May and June from Bhutan. This year, it has come down by almost 800 billion units. And there, we have a shortage as far as the long-term import of power. Because of this reason, the per unit margin is slightly decreased from 3.3 paisa last year to 3.14 paisa, and we expect that this will increase in this quarter on the ongoing quarter. And this was a temporary phenomenon because of the month of May and June, there was lesser hydrology from power imported from Bhutan. Other sources, we had a good control. The shorter-term volume was slightly more and the prices in the market was also lower compared to the previous year. We have increased our market share also. And last year, we see that some of the volumes and so the market share was lesser. This year, we have come back to a normal level of our market share. Similar is the case with -- I would like to remind you all that the Board has already approved a dividend of INR 7.8 per share. And this will be declared in the AGM, which is supposed to be held on 27th of September this year. And once the AGM approves it, the dividend declaration will be done.
We have always believed that the wealth created by the company should be divided and distributed to the shareholders who are the first -- who has the first right to this wealth creation. And our dividend declaration policy is very clear that the 50% of our profit, subject to internal constraints will be distributed to our shareholders.
The second important thing is the progress, what I would like to share with all our investors is the divestment process in PTC Energy Limited. In our press release, we have clearly mentioned that the process is well on track. And by this month end, we will have a firm offers from 5 or 6 of the bidders who are expected to participate. And they are all credible bidders who are expected to participate. And then we will be in a position to give you a clear road map how we are going to get these things resolved. The most heartening thing which has come is from the -- our new investment that is HPX. And within a short span of 1 year, this company has become profitable. And this quarter, we have a healthy trend of profit, which we have seen for the first time. I'm really happy to share with all our investors and analysts that this time, all the holding company, the 2 subsidiary company and our associates are in green and have given a very good result. The other investment that is Teesta Urja Limited, the company has done really good and the profitability in that company for the entire year last year has crossed more than INR 1,200 crores, so that is also a very heartening sign. Let me once again reassure you that the entire top management team is working for the growth of this company. And we feel after the results of the first quarter of this financial year, we are well on track and the ongoing quarter is -- also seems to be well on track.
So with this, I hand it over to our Chief Financial Officer, Mr. Pankaj Goel Gee to give you the details of whatever numbers we have already published, but some analysts what he would like to share with you. Mr. Pankaj Goel?
Thank you, sir. Good afternoon, everybody. Now I'll go through the results for the first quarter of FY '23-'24. First, I'll go through the stand-alone results of the quarter vis-a-vis the previous year quarter ending June. The volume has increased by 16% to 20.6 billion units from 17.7 billion units. Total operational income has already been explained by CMD has also increased by 8% to INR 147 crores from INR 136 crores. This is mainly on account of increase in higher margin in our long-term trade, specifically as already informed in the cross-border trade. The likewise profit before tax has also increased by 20% to INR 120 crores from INR 100 crore. So this is again because of the high margin and the, I will say, effective working capital management because you can see from our results that treasury income has gone up and interest expenses from bank borrowing has also gone down. So there is a 2-way effect. Likewise, in line with the PBT, profit after tax has also increased by 21% to INR 90 crores from INR 74 crore. Total other comprehensive income has increased by 20% to INR 89 crores from INR 74 crores. Earnings per share for the quarter stood at INR 3.03 compared to INR 2.5. Now I'll go to the consolidated results for the quarter. Volume has increased by 16% to 20.7 billion units from 17.8 billion units. Profit before tax has increased by 5% to INR 191 crores from INR 182 crores. Profit after tax has increased by 6% to INR 143 crores from INR 135 crores. Total other comprehensive income has increased by 5% to INR 142 crores from INR 136 crores. Earnings per share on a consolidated basis stood at INR 4.39 in comparison to INR 3.97. Thank you.
Should we begin with the question-and-answer session, sir?
Please go ahead.
[Operator Instructions] We'll take our first question from the line of [ Mohit Kumra ] from Kumra Investment Company.
Most of my questions are directed towards HPX only. Can you hear me?
Yes, yes, we can hear you well. Please go ahead.
So a couple of my questions are directed toward HPX only. First and foremost, on an interview on CNBC. Some very higher management person from your HPX company, very explicitly said that you need to list the company very soon. Is that true?
No, no. What exactly he said?
That I'm very certain that -- and I listened to it many times that he said that just like IPX is listed on the market, even HPX is planning to list on the market. Is this true?
As far as from PTC side, we can say it because we -- right now, we are in the analyst call for PTC. Let me tell you that I'm not aware that this company is going for any kind of listing at this point.
Fair enough. But you understand that you are a majority shareholder, and this is the only way for us to...
Yes. So I clarified what I wanted to clarify.
Okay, sir. My second question is that what will be the real-world effect of this market coupling thing which we are hearing of because one side is claiming that it's a game changer, the other side is claiming that nothing is going to happen. Do you truly believe that something will come out of this market coupling thing.
Market coupling is very much required. As you can understand, there are many reasons. First, I would like to give you the technical reason why and the commercial reason why market coupling is very much required in this country at this point of time. And then I will tell you more about the commercial impact of this market coupling on our exchange and the other 2 exchanges. The important thing is the market coupling is required to have a very strong power market in India where the anonymous buy and sale can take place on a platform which is neutral to both buyers and sellers. Now what the market coupling will be done -- will do is it will have -- create one national price, which is free from any kind of aberration. Today, if you see every day in the night, right from 6 to 7 in the evening, it reaches to the peak of INR 10 and the entire evening, the price is INR 10 and then there is no market operating. If it hits the market at INR 10, then there is no market. So now you are not very sure what to do with such kind of market where the prices are firm. So therefore, the price shifts from the day end market to term end market, which is a bilateral market. So that's not a fair kind of a situation in the market. There are several other reasons why there has to be one national market and the market clearing has to be done on a very neutral way. So market coupling is required, and it is not what I am saying. It is what the PMR says. That is Power Market Regulation '21 says that this is required and this has to be notified on a particular date when the maturity of the market is there. And we feel that the market is mature enough that this market coupling has to be there. The second point, what you asked is what will be the commercial impact of the other exchanges. We are not saying anything to hurt any other exchange, but at the same time, for the national interest of developed market to take place, we expect that the market need to be coupled. And if the benefit comes to HPX because of that reason, that is purely something which is consequential. But we are saying that the market need to be coupled for the reason that we expect that the market has to be fair and transparent and totally say anonymous. So for these reasons, we are advocating it, and I think the government as well as the regulators is clearly trying to...
But what will be the real-world effect for HPX. If it happens, let's assume it happens because I think they have made it very clear that they are very interested in the government. What percentage of the market do you expect will you have once this is executed, the market coupling?
Let me tell you, I'll not predict anything or I'll not give anything in future perspective. But to give you some perspective, I can always say that the other segments of the market, HPX in a very short span of 1 year, they have almost garnered almost 1/3 of the market.
Okay. So is it fine for us even as citizens of India to believe that a market which was monopolistic for a very, very long time, will not remain so in the future, if market coupling is introduced? Is that right way of thinking?
You -- without asking this question to me, you sort of answered that if it is a monopolistic market, it has to be something which is more transparent for the benefit of the end consumers. And that's what we are trying to convey in so many conferences and views.
We have the next question from the line of [ Narendra Cutia from Robo Capital. ]
Yes. Am I audible?
Yes. Yes. You are.
So my first question is regarding the PTC Energy divestment. So last call, if I'm not wrong, you had said that it will be completed by June or July end. So is there any specific reason for the delay, if you could share something?
No, there is -- the process is well on time, and we have uploaded everything in our data room and because of so many -- there are several of the projects, look at it in different states and any serious buyer will try to have a proper due diligence before they submit their bid. And because of these reasons, they are going into deeper dives and trying to get all the information required for such kind of bid, which they have completed more or less. And that's the reason why I announced that by end of this month, we will be in a position to give you more information on this divestment and what exactly the bids are.
Okay. And secondly, on the PTC financials. So are we in a position to rethink our stakes in -- begin the talks again for that?
At this point of time, I can only share with you that PTC Energy is in advanced stage. And PFS, we have -- as the Board has decided, we have kept it on hold. And last time also I mentioned that all the 3 divestments cannot be done in one go, so it has to be sequential. And right now, I mentioned that PTC Energy is on the cards.
Okay. Okay. And regarding the -- we talked about the market coupling. But what about the MBED rule that is under discussion, so how will it affect us? And also how will it affect HPX, if you could share something?
MBED, I have explained earlier, MBED was to be implemented almost 1.5, 2 years back, and that is more a dispatching and not a market per se, it was that all the central generator -- generating stations will schedule their power through the exchanges. That was what was proposed in the MBED. Now as because the final beneficiaries are the states and states do get the schedule from the central generating stations, first, they have to agree for this. And then if it is agreeable from both the side, the central engineering stations as well as the distribution companies, this can be implemented, which I feel that still both the parties have to agree for this. So once they agree, then only it will be implemented and PTC is not going to get any impact of it. Rather, we will get the benefit that some of the long-term PPAs, what we have, will get a better schedule once MBED is...
But for HPX, it could be a huge trigger, right?
Yes. HPX certainly will get a lot of benefit that entire power -- if it is scheduled through exchanges, of course, HPX being an institutional exchange will get a lot of priority for such kind of treatment.
We have a next question from Nikhil Abyankar from ICICI Securities.
So my first question is, Teesta has a PPA with PTC and they are also selling on HPX, so -- where PTC basically doesn't make any margin, so why does Teesta sell on HPX while PTC doesn't make any money basically?
No. Let me give you the entire background of Teesta having a PPA with PTC. Teesta had 4 PPAs with PTC, long-term PPAs with the state of Uttar Pradesh, Rajasthan, Haryana and Punjab. So altogether, that is 820 megawatts of supply to be given from Teesta Urja Limited to all the 4 beneficiaries. Then there are 12% free power for the state of Sikkim and there's some merchant capacity of around 240 megawatts. I feel all the numbers what I have mentioned is correct. So this 240-megawatt merchant power, they can sell anywhere, and it can be sold through any exchange. And that's exactly the thing what we are discussing right now. The merchant power, they are selling it through HPX. And moreover, the two schedules, which Punjab and Haryana has to take from Teesta Urja is still to be operationalized. So that power also maybe -- might be routed through any of the exchanges, which they have -- they are currently doing through HPX.
Okay. And sir, now next question about HPX. So initially, when we started, we had given some discounts, if I'm not wrong. So are we still giving those discounts?
No, that's a strategy of the company. I'll not go into the strategy of HPX how they're doing business.
Sir, can you just share the profit numbers for Q1 and FY '23, if you may?
Yes. I'll ask CFO to just share with you.
Yes, the PBT, actually, I will tell my share because we are holding 22% share. So whatever profit I'm telling you, so that is 22%, and you can then cross it out. The profit before tax, which we have consolidated in our balance sheet is INR 2.48 crores. So -- sorry. It's for the whole HPX actually, INR 2.48 crores.
Just for Q1?
Yes, Q1.
And last year, sir?
Last year, it was having a loss of INR 10 crores, PBT.
Loss of INR 10 crores. Okay. And sir, just a follow-up question on that. Given that coupling does actually happen and we -- basically all the exchange act as an aggregator and the Nodal Agency will do all the clearing work, so what will be our moat basically? So what are we doing to like develop a mode for our company, for HPX basically?
Nikhil, I'm not very clear. What exactly is your question?
Sir, if we keep on reducing the prices, transaction prices keep on giving discounts, so how will we create value for our shareholders? And also, if we only act as an aggregator, basically, under the coupling, all the exchanges will act as aggregator and the Nodal Agency will do the clearing work, if I'm not wrong. So how will we generate our own moat in that scenario?
Nikhil, I understand the margins, whatever has been prescribed by the regulator is already given there. And the -- any company or for that matter exchange, if they are coming out with some promotional scheme that they have to take care, but I don't feel that this is going to impact the profitability or the commercial aspects of that company.
We have a next question from the line of Vipul Kumar Shah from Sumangal Investment.
So sir, can you give a broad direction, what are the margins for short term? And what are the margins for long term?
Yes. We have shared it in our investor set, but I can give you the number or Pankaj Gee you would like to share?
Yes. Yes. So for the June quarter, the margin in short term was including exchange and bilateral trade on an average was 0.8 paisa And for medium term, it is 1.73 paisa. For long-term rate, including cross border, it was 7.22 paisa per unit. So that is the major margins in different trades.
Okay, sir. And what is the market share of HPX currently? Any number?
Yes, market share for a particular segment, that is term ahead market, they have a market share at around 30% to 35%. For day-ahead market, they are yet to launch the product because they are expecting that the parity is required for such product. There are 3 new products which HPX has launched, and they are market leaders in that.
We have our next question from Vaibhav Gupta from Bowhead Investment Advisors.
Am I audible?
Sir, you're sounding very low. You'll have to speak louder.
[indiscernible]
No, sir. It is still very low. Can you increase the volume, please? Management team, are you able to hear Mr. Vaibhav Gupta?
No, we are not. I mean, you can give him the opportunity to again come back if required. You can give the opportunity to somebody else in the meantime.
Sure. Mr. Vaibhav Gupta, I request you to check your connection. Meanwhile, we'll take the next question from Mohit Kumar from ICICI Securities.
I hope I am audible.
Yes. Yes, you are very much audible.
So my first question is on the PTC Energy. What are the revenues, EBITDA and profit? And any update on the sale of the asset where we are right now? And is there any issue with the realization as of now? Or are we getting the full tariff?
So Mohit, I'll answer your third question first, and then we'll come back to one and two. Third, you have asked about the tariffs. So we are getting the tariff from all the 3 beneficiary states, that is Andhra Pradesh, Karnataka and Madhya Pradesh. And ever since this LPS and property scheme, the all DISCOMs are making payment well in time. So this is what I can say regarding the outstanding. And related to other -- some of the cases like GBI and all things are being discussed at a different forum. And once that will be settled, they will start making the pay. The first part, you have asked is the profitability part. They generation this quarter is 6% up and so is the profitability. And the divestment part, as I have already just mentioned that the progress is going on well, and we expect that the process will be complete by this month.
Sorry, sir. His line is disconnected. We'll move to the text questions now. We have a question from Bharanidhar V from Avendus Spark. The question is why is the growth of long-term and medium-term volumes in the quarter negative. The purpose to introduce market coupling by regulator in PMR is to have one, uniform pricing; second, reduce transmission congestion, uniform pricing and there's almost no transmission congestion. Why is market coupling needed?
I would like to answer the second part first. The reasons what we understand why the market coupling is required has nothing to do with the price congestion. It has some other reasons why in PMR, market coupling was felt necessary. And those conditions, what was felt necessary prevails in this market in a very strong way. The second part, what has been asked is, I have already explained that the cross-border trade, which is a long-term trade was affected because of the hydrology in Bhutan and we had lesser volume from there. And for some of the contracts, the scheduled volume was lesser than what was anticipated in our PPA. So these are the 2 reasons why the long-term PPA is slightly lesser than what was anticipated.
The next question is from Mr. Rajan Shah from Value Invest. What is the net debt of PTC Energy? By when can we expect the offers to be opened and disclosed to shareholders?
So net debt as on 30th June is around INR 1,200 crores for PTC Energy Limited.
And regarding the date, we have already informed.
We have a question from Vaibhav Gupta from Bowhead Investment Advisors. What are our plans to sell stake in Teesta Urja? And given the high profitability in FY '23, what kind of amount can we expect to realize for our stake? And the second question is receivables outstanding beyond 30 days and 6 months. And third, cash and debt position of PTC India stand-alone on 30th June.
Yes. So the first part, what you have asked, the -- rather the numbers, what you have asked the outstanding position and the liquidity position, I'll request CFO to please answer that.
Yes. So net cash balance as on 30th June was around INR 553 crores, we had a cash on -- as on 30th June. And as regards the debtors, we always analyze debtor minus creditor because we have a lot of back-to-back debtors and back-to-back creditors. So taking into account all this, so we have a net working -- net working capital exposure of order around INR 1,957 crores and per se, if you specifically ask the more than 30 days exposure is around INR 992 crores.
We'll go on to the next question from Rupesh Sankhe from Elara Capital. What is the volumes sold on IEX platform in Q1 FY '24 versus last year Q1 FY '23?
Yes. For exchange, this quarter, we have done INR 10.2 billion vis-a-vis the last quarter, it was around 7 billion units on the exchange.
And the next question is from Vipul Kumar Shah from Sumangal Investment. What is our stake in PTC Energy?
PTC owns 100% of the PTC Energy Limited. It's 100%...
[Operator Instructions] We'll take our next question from [ Mohit Kumra ] from Kumra Investment Company.
I wanted to understand the long -- this might be a very basic question, but how is -- how are power exchanges not getting into the power trading business, your core business, number one. And is it correct for me to understand that power distribution companies suppose their estimated requirement is 100 units in a month, so they buy 90 units from the trading company and then the final thing they adjust on exchanges. Is that correct or not correct? This is a very basic question. I'm just trying to understand.
No, no. I'll give you a very simple and very straightforward answer to this. If you feel that the entire country is generating 1,400 billion units in a year, 90% of it comes through a long-term PPA. And this is being done by the generator straight either with the DISCOMs or through an intermediary through a long term or medium term PPAs. So 90 -- almost 88% to 90% of the volume comes from long-term PPAs. Rest of the small 11% to 12% comes from either exchange or through short-term bilateral contracts. So you can understand these exchanges are contributing only 5% to 6% of the total requirement of a distribution company. At this point of time, this is the share of different components.
How do you see this moving forward? Does it change structurally, but in the longer term?
With the market getting more mature, this 12% may increase to around 20% to 25%.
We have a question from the line of Rajan Shah from Value Invest.
Sir, I had few questions actually. In the first quarter, our volumes went up by about 16%. What is your outlook for the next 3 quarters? That was my first question. The second question is on PTC Energy. What is our net debt in PTC Energy? I just wanted to understand that because I just wanted to get a feel of what is our equity holding. I mean, we hold 100% in PTC Energy. So just wanted to know what is the net debt and what could be the net equity realization for us at PTC Energy? So that was my second question. And third are post-PTC Energy divestment, which you are expecting by the end of this month, can we expect process on PFS to start? So these are my questions.
No, the first, what you asked is what will be the way forward for the entire year. I think we have already given that what the target we have set for us, and it will be in the range of 15% to 20% for this year for the growth of the volume. The second part, you asked about what is the net debt, which CFO has just informed that it is around INR 1,200 crores for PTC Energy Limited. And once we finally get the bid and we are in a position to share with you the details, we will be in a position to tell how much equity or the value we with -- this company has created for us. So there we are.
And the third part is just after this or maybe after some month time, as I said, that we will take one by one, whatever the disinvestment process we have to take up and what the Board has mandated it for us.
Sir, I had one more question actually. The CFO mentioned that the profit of Hindustan Power Exchange in the first quarter was about INR 2.4 crores or this INR 2.4 crores was for 100% of Hindustan Power Exchange, I understand not for 20 -- right?
Yes, it is for 100%.
100%. So our share is about 22%, 23%. So fine. So sir, maybe in the next 1 or 2 years, do you plan to sell your holding in HPX or bring it down...
I have clarified this very well, that whatever the PMR will tell us, we will do that. But important thing is we have created this institution. And we being the largest -- one of the largest promoter of this company will decide what to do with this. But right now, we are in the creation.
Okay. Sir, last question, sir. The promoters NTPC and other prominent power players, they hold about 16%, Damodar Valley holds about 4%. Any plans by the Power Ministry to privatize this company or sell all these players selling their stake? Because if that happens, it could really unlock tremendous value of PTC India.
I think you are asking this question related to the decision to be taken by my promoters and the Ministry of Power. So I will very humbly say that this is a question meant for them and not for me.
[Operator Instructions] We have a text question from [ Narendra Cutia ] from Robo Capital. What was your revenue of HPX in FY '23, if you could share the number?
Just a minute. The CFO will share that.
Yes, total revenue of HPX for the quarter was around INR 9.53 crores.
We have a text question from Manoj Alim Chandani from AFRS. What is the fair value estimate for PTC Energy, who has done the valuation before inviting offers for sale? What is the minimum reserve price? How the sale processes are proposed to be used?
Sir, we understand that this is something very sensitive questions which you are asking. And the process is on, and it has to be a very transparent process. And as I informed our shareholders and investors that there are multiple bids, which we are expecting. And any of the information which we had to share at this point, we need to be very cautious. And I can only say that once this process is complete, the entire thing we will share with you included what the reserve price was and how much the bid was and what is the final bid which we have received. So till time, I feel that you have to bear with us, and we will be announcing it shortly.
We have a text question from Sonal Kohli from Bowhead. INR 500 crore is net debt or gross debt of the stand-alone entity? What are your gross receivables and creditors on 30th June? Also, gross receivable about 6 months on 30th June, any plans to sell Teesta Urja this year or next year?
Yes. Just a minute, I mean, CFO is trying to dig out the data.
Gross receivables as on for the quarter as on 30th June was around INR 6,449 crores.
Should we move to the next one, sir?
Yes, because the other two I have already answered in the earlier questions, so you can move to the next.
[Operator Instructions] We have a question from Narendra [ Cutia ]from RoboCapital.
Thanks for sharing the queue number but it would be helpful if you could share the FY '23 number for HPX revenue.
Yes, I'm just trying to dig it out. I'm able to find it, I'll tell you.
Yes, yes, no problem.
You are asking for the March '23 numbers?
Yes, FY '23. If it could be possible.
Yes. Yes, the total revenue was around INR 17.44 crores.
Okay. Just wanted to know the growth trajectory for it.
Yes. For the quarter, it is INR 9.53 crores. And for the last year, as a whole, it is INR 17.44 crores.
We have a text question from Sriram R. I understand that PTC India was one of the original promoter of IEX. Why did we exit and now we have reentered the scene via HPX. Can you please explain the logic of exit and reentry?
No, PTC in past is the creator of the market. That is we have -- since 2000, have started this process, and we have created many institutions. And IEX was promoted by PTC at one point of time, not PTC, but PTC Financial Services for that matter. And the decisions taken at that point of time, there is no point to look into what decisions has been taken. But HPX has been -- this decision to invest in HPX, the third power exchange was taken in 2016-'17. We got the license in '19-'20. And since then, they operationalize in '22-'23. And we are at the stage what we are today. This is the real story. And if you try to see any other reason other than that, I think we can discuss it separately.
We have a text question from Manoj Alim Chandani from AFRS. What are the plans for expansion of bold and any fresh induction of reputed IDs?
No. The -- as far as the PTC is concerned, we have 12 board members and 6 of them are reputed IDs and they have incredible records. So that is -- we are compliant, 100% compliant as per as SEBI LODR is concerned. Any new induction at any point of time will be informed to both the exchanges and will be informed to the shareholders also.
We have a question from Vaibhav Gupta from Bowhead Investment Advisors.
Sir, am I audible?
Just one request, like can [indiscernible]
I'm sorry, Mr. Gupta. We just lost your voice again.
Am I audible?
I can hear you. Yes.
Yes. Sir, just wanted to make one request with regard to sharing subsidiary financials going forward in the quarterly presentation itself.
Okay. We will try to do that. As per SEBI LODR because these are 2 listed companies, and they have their separate analyst calls, so we maintain that. We have 2 different analyst calls. But in case if you feel that for sharing information, you want this additional information to be given to our investors, we can do that. But again, my request to all our shareholders is please restrict our call limited to this listed company.
Mr. Gupta, does that answer your question?
Yes. Thank you.
We have a text question from Vipul Kumar Shah from Sumangal Investment. What is our stake in Teesta Urja Limited?
CFO will inform. It's around 6%.
To be precise, 5.62%.
[Operator Instructions] We have a question from the line of Rupesh Sankhe from Elara Capital.
Yes. Yes, Sir. Sir, I just wanted to clarify. You said that we sold 10 billion units on IEX platform in Q1 FY '24. Is that correct number sir?
Yes, the exchange volume is this, and most of it goes to IEX.
Okay. Okay. So let's say, tomorrow, HPX come out with a [Indiscernible] product. Do we intend to divert our volume from IEX to HPX?
We have always informed you that the -- all the customers who have faith on PTC to do their business on the exchanges, we give them full opportunity to choose which exchanges they would like to do business with. So as far as PTC is concerned, we will not ask anybody to either do it through IEX or any other exchange. But customer has the full choice to choose which exchange they would like to do business.
Have a text question from Manoj Alim Chandani from AFRS. What are the plans for expansion of Board and any fresh induction of reputed IDs?
I think we have already answered it. I think there is a repetition, please. So if there is no fresh question, I think we can thank all our investors.
We have two questions. Should I read that?
Please, please, continue with that.
We have a question from [ Lipika Kundu ], an individual investor. Sir, next year 2024-'25, is Silver Jubilee year, what are plans to reward investors?
No, no, I mentioned it during my opening remarks itself that PTC management, Board both are very keen to reward their investors. And the dividend declaration policy also speaks very clearly about that. But the important thing is if the value is created in terms of whatever will be shared and will be rewarded to the shareholders, and the Board is very much in favor of that.
We have a question from [ Sriram R ]. What is the current operating margin of HPX, how would that change when market coupling happens?
The trading margin, what is prescribed in the PMR is very clearly to 2 paisa buy side, 2 paisa sale side, and that's the margin on which they operate. Of course, they can offer some discounts and any new exchange in the initial years will offer some discounts. And this is not going to change even if there is a market coupling. There is nothing which we know that after market coupling, the exchanges or for that matter, bid aggregators will be reduced from this 2 paisa plus 2 paisa margin.
Thank you, sir. As there are no further questions, I would now like to hand the conference over to Dr. Rajib Kumar Mishra for closing comments. Over to you, sir.
Thank you very much, and I'm really thankful to all the investors because we know that tomorrow is an Independence Day for the country. And just after the weekend and before the Independence Day, it's a tough day for all of us, but you all participated and I'm thankful for all our investors that they have shown faith in this company all these years and particularly during some time when we we're not facing the best of the times. So I'm really helpful for all our investors, and I can assure you that the company is on the right track, and we are doing good as far as what we have planned. Thank you very much.
Thank you, sir. Ladies and gentlemen, on behalf of PTC India, that concludes today's session. Thank you for your participation. You may now exit the meeting.