IndiGrid Infrastructure Trust · NSE:INDIGRID
IndiGrid Infrastructure Trust — Q3 FY2023 Earnings Presentation
26 slides from IndiGrid Infrastructure Trust's earnings presentation, January 2023
Slide 1: Investor Presentation Q3 FY23 Results
I N V E S TOR P R E S E N TA TION Q 3 FY23 R E S U LTS 1
Slide 2: Safe Harbor
Safe Harbor This presentation is prepared and issued by IndiGrid Investment Managers Limited (the “Investment Manager”) on behalf of and in its capacity as the investment manager of India Grid Trust (“IndiGrid”) for general information purposes only without regards to specific objectives, financial
Slide 3: Vision
Vision Focused Business Value Accretive Predictable Optimal Capital Model Growth Distribution Structure • Long term contracts • DPU accretive • Quarterly distribution • Cap on leverage at • Low operating risks acquisitions Y-o-Y • Minimum 90% of Net 70% • Stable cash flows • Creating growth cash flo
Slide 4: Q3 FY23 Quarterly Update
Q3 FY23 Q UARTERLY UPDATE 4
Slide 5: Q3 FY23 Highlights
Q3 FY23 Highlights Portfolio Growth ❑ SPA signed with Sterlite for 100% equity stake acquisition in Khargone Transmission Limited (KTL) in January 2023, Closure expected in Q4 FY 23 ❑ KTL consists of 6 revenue generating elements across 626 ckms of transmission network and 3000 MVA of 765/400 kV AIS
Slide 6: Q3 FY23 Industry Update
Q3 FY23 Industry Update Power Demand and Supply Trend + 8.8% 200 191.6 ❑ Average quarterly peak power demand registered at 191.6 GW for Q2 FY23 190 + 3.7% ❑ Peak power demand witnessed YoY rise of 8.8% as against 3.7% for previous period 180 176.0 169.6 ❑ India has envisioned aggressive generation g
Slide 7: Q3 FY23 Operational Performance
Q3 FY23 Operational Performance Q3 FY23 availability(%) ❑ Zero Harm on HSE 99.73 99.69 99.90 100.00100.00 98.90 99.82 100.00100.00100.00 99.81 98.82 99.95 100.00 ▪ 2 Million Safe Manhours milestone achieved ▪ Zero Fatality, Zero LTI (Loss Time Injuries), Zero MTC (Medical Treatment cases), Zero FA
Slide 8: Q3 FY23 Financial Performance
Q3 FY23 Financial Performance Earnings Revenue (₹ Mn) EBITDA (₹ Mn) 5,706 5,908 ₹ Mn Q3 FY23 Q3 FY22 % change 5,360 5,179 Revenue 5,908 5,706 4% 4,312 EBITDA 5,360 5,179 4% 3,938 NDCF Generated 2,944 2,586 14% DPU (₹ per unit) 3.30 ~3.19 4% Q3 FY21 Q3 FY22 Q3 FY23 Q3 FY21 Q3 FY22 Q3 FY23 Collection
Slide 9: Q3 FY23 Distribution Update
Q3 FY23 Distribution Update Particulars Q3 FY23 Q3 FY22 Quarterly Distribution Trend Distribution per unit (DPU) (₹) 3.30 ~3.19 - Interest ~2.8042 3.1137 3.30 3-4% YoY growth - Dividend NIL NIL 3.19 3.10 - Capital Repayment/Others ~0.4958 0.1863 3.00 3.00 Outstanding Units (Mn) 700.2 700.2 Gross Dis
Slide 10: Q3 FY23 Consolidated EBITDA to NDCF Waterfall
Q3 FY23 Consolidated EBITDA to NDCF Waterfall (In ₹ Mn) 99 92 5,303 5,432 -45 -17 -27 Reserve worth 2,944 ₹ 633 Mn -2,448 replenished during -13 the quarter; reserve balance at ~ ₹ 2,170 Mn 633 -2,311 EBITDA at SPV Finance cost WC Movement Capex Tax at SPV NDCF at SPV Expenses at Finance cost at Tax
Slide 11: Robust Balance Sheet
Robust Balance Sheet Gross Borrowing (~ ₹ 130 Bn) AAA Rated ~7.50% ₹ 10.39 Bn By CRISIL, ICRA & Average Cost of Cash 14 10 India Ratings Debt Balance1 7 28 ~77% ~58% >2.20x Fixed Rate Net Debt/AUM EBITDA/Interest 14 Borrowings ❑ Weighted average cost of borrowing for incremental debt at ~7.8% in NCD
Slide 12: Superior Risk-Adjusted Total Returns to Investors
Superior Risk-Adjusted Total Returns to Investors Annualised Return 5% 6% 14% 13% 11% 14% 10% 25%2 Total Returns1 34% 39% 105% 93% 75% 103% 73% 44% 40% 40% 85% 27% 63% 84% 37% 40% 65% 9% 13% 19% 33% 17% -3% -1% GSEC Bond GSEC Bond IndiGrid NSE 500 NSE INFRA BSE Utilities PGCIL PGCIL InvIT (10 year)
Slide 13: Framework Agreement signed with GR Infra to acquire Rajgarh Transmission Limited
Framework Agreement signed with GR Infra to acquire Rajgarh Transmission Limited Rajgarh Transmission Limited (RTL) • ISTS TBCB transmission project for establishment of Pachora SEZ PP of 1500 MVA capacity at 400 / 220 kV level Asset Overview • Pachora SEZ PP – Bhopal S/s 400 kV D/C transmission lin
Slide 14: KTL – Binding Share Purchase Agreement Signed with Sterlite
KTL – Binding Share Purchase Agreement Signed with Sterlite Khargone Transmission Limited (KTL) • ISTS TBCB transmission project for evacuation of Khargone Power Plant (KPP) through Khandwa Substation at 765 kV • 3000 MVA Substation at Khandwa of 765/400 kV, ~626 ckms of transmission network of 765/
Slide 15: Proven track record of sustainable increase in DPU
Proven track record of sustainable increase in DPU IPA assets Acquistions I (MTL+ RTCL + PKTCL +PTCL) Acquistions II (ENICL+OGPTL+NRSS) 16.0 Acquistions III (JKTPL+GPTL+PrKTCL+NER+FRV) Acquistions IV (RSTCPL+KTL+Kallam) 15.0 14.0 13.20 12.75 13.0 12.20 12.00 12.00 12.0 11.001 11.0 10.0 9.0 8.0 DPU (
Slide 16: Business Outlook
Business Outlook Portfolio Strategy ❑ Focus on maintaining stable operations for predictable and sustainable distribution while looking for value- accretive acquisitions ❑ Delivering on increased DPU Guidance of ₹ 13.20 for FY23 ❑ ~ ₹ 2,400 Bn worth of transmission projects to be added to the grid b
Slide 17: Annexures
A NNEXURES 17 17
Slide 18: More than Five Years of Sustainable Growth Journey
More than Five Years of Sustainable Growth Journey Sustainable Growth • Acquisition of 2 assets, KTL & RSTCPL, worth ₹ Portfolio Growth Regulatory Evolution 17.5 Bn* • Acquisition of 3 assets • Framework Agreement • Acquisition of 4 assets worth worth ₹ 25 Bn with G R Infra for RTL ₹ ~17 Bn • Execut
Slide 19: Evolution over the Years
Evolution over the Years Inception in FY18 FY20 FY23* 42 lines (~7,790 ckms)1 Portfolio 8 lines (~1,936 ckms) 20 lines (~5,800 ckms) 12 S/S (~14,550 MVA)1 Growth 2 S/S (6,000 MVA) 4 S/S (7,735 MVA) 100 MW (AC) Solar 4 states 12 states & 1 UT 19 states & 1 UT 10 Revenue Elements 22 Revenue Elements 5
Slide 20: Footprint
Footprint ~ ₹ 212 Bn1,2 19 STATES & 1 UT ASSETS UNDER MANAGEMENT 55 REVENUE GENERATING ELEMENTS2 ~7,790 ckms 2 ~14,550 MVA2 42 LINES 12 SUBSTATIONS 100 MW(AC) ~29 YEARS S OLAR GENERATION AVERAGE RESIDUAL CONTRACT3,4 2x315 MVA (400/220 kV GIS 765 kV S/C substation) 765 kV D/C 2x500 MVA (400/220 kV GI
Slide 21: Asset Portfolio
Asset Portfolio 12 Inter State TBCB 1 Intra State TBCB 1 Regulated Tariff 1 Solar Generation 1 Under Construction TBCB Transmission Projects Transmission Project Transmission Project Asset Transmission Project Availability AUM2 FY23 Tariff Metal Asset States Elements Contract COD (%)1 (₹ Million) Co
Slide 22: Corporate Structure
Corporate Structure Other Unitholders Sponsor* ~24% ~20% ~56% 100%^ Investment Manager (IIML) Trustee 100% 100% 100% IGL IGL 1 IGL 2 100% 100% 100% 100% 100% 100% 70% 30% 100% 100% 100% 100% 100% 74% 100% 100% 100% BDTCL JTCL RTCL PKTCL MTL NTL Kallam OGPTL PTCL ENICL GPTL JKTPL PrKTCL# NER-II Solar
Slide 23: Diversified Investor Base
Diversified Investor Base As on Dec 31, 2022 Corporates & Supported by marquee long term investor base Retail Trusts 21% 15% Insurance 7% Others ~24% owned by DIIs including insurance companies, mutual ~23% 3% funds, pension fund and corporates Other FIIs 10% Retail Holding at ~21% ; quadrupled in v
Slide 24: Experienced Board of Directors
Experienced Board of Directors • Over 30 years of rich experience, currently independent non-executive director of Mapletree Logistics Trust Ltd. He is an independent director of • Member of the Asia-Pacific Infrastructure team of KKR since 2018 Westlife Development Ltd., Jubilant Pharma Ltd. and Gl
Slide 25: Glossary
Glossary AC Alternate Current JKTPL Jhajjar KT Transco Private Limited AIS Air Insulated Substation M/C Multi Circuit AUM Assets Under Management Mn Million Availability Percentage amount of time for which the asset is available for power flow MT Metric Tonne BDTCL Bhopal Dhule Transmission Company
Slide 26: Thank You
T H AN K Y O U 26
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