IndiGrid Infrastructure Trust · NSE:INDIGRID
IndiGrid Infrastructure Trust — India Grid Trust — Q4 FY23 Earnings Presentation
31 slides from IndiGrid Infrastructure Trust's earnings presentation, May 2023
Slide 1: Investor Presentation Q4 FY23 Results
I N V E S TOR P R E S E N TA TION Q 4 FY23 R E S U LTS 1
Slide 2: Safe Harbour
Safe Harbour 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: Portfolio Overview
Portfolio Overview ~ ₹ 228 Bn1,2 19 STATES & 1 UT ASSETS UNDER MANAGEMENT 61 REVENUE GENERATING ELEMENTS1,2 ~8,468 ckms1,2 ~17,550 MVA1,2 46 LINES 13 SUBSTATIONS 100 MW(AC) ~27 YEARS S OLAR GENERATION AVERAGE RESIDUAL CONTRACT3,4 ~12,970 1 >5,35,000 MT 5 TOWERS STEEL AND ALUMINUM (1) Value of 100% s
Slide 5: Evolution over the Years
Evolution over the Years Inception in 2017-18 2019-20 2021-23 46 lines (~8,468 ckms)1 Portfolio 8 lines (~1,936 ckms) 20 lines (~5,800 ckms) 13 S/S (~17,550 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 El
Slide 6: Q4 FY23 Quarterly Update
Q4 FY23 Q UARTERLY UPDATE 6
Slide 7: Q4 FY23 Highlights
Q4 FY23 Highlights Portfolio Growth ❑ Signed definitive agreements to acquire units of Virescent Renewable Energy Trust (VRET) – a AAA-rated InvIT with operational renewable assets at an EV of ~ ₹ 40 billion, subject to closing adjustments and approvals ❑ IndiGrid AUM will increase by 18% to ₹ 269 b
Slide 8: Q4 FY23 Industry Update
Q4 FY23 Industry Update Accelerated addition of generation Additional Transmission networks Heightened focus on Renewable capacity to meet the rising demand required to facilitate evacuation generation and energy storage infra 202.0 209.0 ❑ India’s TL network (above 220 kV) ❑ GOI’s aim is to achieve
Slide 9: Q4 FY23 Operational Performance
Q4 FY23 Operational Performance Q4 FY23 availability(%) ❑ Zero Harm on HSE 99.57 99.57 99.29 99.68 99.59 99.97 99.22 99.42 99.52 99.84 99.69 99.79 99.77 99.59 99.55 ▪ 2.5 Million safe manhours achieved ▪ Achieved Zero Fatality, Zero recordable LTI* and Zero FAC (First Aid Cases) ❑ Performance ▪ Po
Slide 10: Q4 FY23 Financial Performance
Q4 FY23 Financial Performance Revenue (₹ Mn) EBITDA (₹ Mn) 5,989 5,495 6,00 0 Earnings 5,278 6,00 0 4,984 4,993 5,00 0 5,00 0 ₹ Mn Q4 FY23 Q4 FY22 % change 4,00 0 3,866 4,00 0 Revenue 5,989 5,495 9% 3,00 0 3,00 0 EBITDA 5,278 4,993 6% 2,00 0 2,00 0 NDCF Generated 3,470 2,931 18% 1,00 0 1,00 0 DPU (₹
Slide 11: Our DPU Growth Journey
Our DPU Growth Journey Management Objective: Superior Returns | Sustainable DPU | Stable Operations FY23 – Closing an acquisitive year ❑ Acquired RSTCPL for ~ ₹ 2.4 billion Delivering consistent growth to ❑ Acquired KhTL for ~ ₹ 15 billion Unitholders ❑ Signed framework agreement with GR Infra Quart
Slide 12: Q4 FY23 Distribution Update
Q4 FY23 Distribution Update Particulars Q4 FY23 Q4 FY22 Distribution per unit (DPU) (₹) 3.45 3.19 - Interest 2.53 2.55 - Dividend (Taxable)* 0.03 NIL - Dividend (Non-Taxable)* 0.26 NIL - Capital Repayment 0.58 0.64 - Other Income* 0.05 NIL Outstanding Units (Mn) 700.2 700.2 Gross Distribution (₹ Mn)
Slide 13: Q4 FY23 Consolidated EBITDA to NDCF Waterfall
Q4 FY23 Consolidated EBITDA to NDCF Waterfall (In ₹ Mn) 6,071 -88 900 -144 -15 5,258 -72 -2,512 Reserve worth 3,470 ₹ 1,055 Mn added during the quarter; -1 reserve balance at ~ ₹ 3,224 Mn -2,415 1,055 EBITDA at SPV Finance cost WC Movement Capex Tax at SPV NDCF at SPV Expenses at Finance cost at Tax
Slide 14: Robust Balance Sheet
Robust Balance Sheet Gross Borrowing ~ ₹ 146 Bn AAA Rated ~7.53% ₹ 11.60 Bn By CRISIL, ICRA & Average Cost of Cash NCDs 42% 6 4 India Ratings Debt Balance1 Bank Loans 58% 15 28 ~78% ~59.5% 2.16x 9 Fixed Rate Net Debt/AUM EBITDA/Interest Borrowings 14 ❑ Weighted average cost of borrowing for incremen
Slide 15: Superior Risk-Adjusted Total Returns to Investors
Superior Risk-Adjusted Total Returns to Investors Annualised Return 5% 6% 13% 11% 10% 9% 11% 20%2 Total Returns1 34% 39% 103% 83% 71% 65% 84% 42% 35% 48% 45% 23% 58% 73% 37% -3% 40% -1% 68% 10% 13% 21% 36% 20% GSEC Bond GSEC Bond IndiGrid NSE 500 NSE INFRA BSE Utilities PGCIL PGCIL InvIT (10 year) (
Slide 16: Business Outlook
Business Outlook Portfolio Strategy ❑ Consummation of pipeline deals including VRET acquisition and framework agreement asset with GR Infra ❑ Identifying and acquiring value accretive assets to ensure consistent DPU growth including upcoming BESS1 bids and opportunities in power transmission spaces
Slide 17: Key Decisions at upcoming EGM
Key Decisions at upcoming EGM ITEM NO. 1: TO APPROVE PROPOSED ACQUISITION OF UNITS OF VIRESCENT RENEWABLE ENERGY TRUST AND MATTERS RELATED THERETO • Acquire 100% units of Virescent Renewable Energy Trust (“VRET”) from Terra Asia Holdings II Pte. Ltd. (“Terra”) an affiliate of KKR & Co. (“KKR”) and o
Slide 18: Acquisition of Virescent Renewable Energy Trust
A CQUISITION OF V IRESCENT R ENEWABLE E NERGY T RUST 18
Slide 19: Transaction Highlights
Transaction Highlights 1 IndiGrid has signed definitive agreements to acquire Virescent Renewable Energy Trust (VRET) along with its IM / PM, at an Enterprise valuation of ~₹ 40 billion; acquisition subject to requisite regulatory and unit holder approvals and closing date adjustments 2 Assets Under
Slide 20: Deal Details
Deal Details The Transaction Deal Process • India Grid Trust (IGT) has signed definitive agreements to • May 12, ‘23: Approval received from Board* of Investment acquire Virescent Renewable Energy Trust (VRET) along Manager to acquire 100% units of VRET with its Investment Manager (IM) and Project M
Slide 21: Consolidated Geographical Footprint
Consolidated Geographical Footprint Pre-Transaction Post-Transaction • 46 lines – ~8,468 ckm • 46 lines – ~8,468 ckm • 13 sub-stations – ~17,550 MVA • 13 sub-stations – ~17,550 MVA • 17 Solar Asseta – 555 MWAC • 1 Solar Asset – 100 MWAC • 20 States & 1 UT • 19 States & 1 UT TL End-Point Substation S
Slide 22: Key Advantages for IndiGrid
Key Advantages for IndiGrid >18years <15years Exemplary Track Record 50% 18% Average ▪ Assets with ~7 years of operational history and ~18 years of avg. remaining tenure balance life ▪ Majority PPAs with strong counter-parties; well-managed receivables profile of ~90 days of ~18 years 15-18years ▪ I
Slide 23: DPU Accretive Acquisitions
DPU Accretive Acquisitions 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) Acquisition V (VRET + Expansions2) 15.0 13.80 14.0 13.35 12.75 13.0 12.20 12.00 12.00 12.0 11.001
Slide 24: Proposal for change in Investment Management Fee
Proposal for change in Investment Management Fee Current Structure Proposed Structure ▪ 0.25% of AUM of IndiGrid, as per latest valuation, subject ▪ 0.25% of AUM of IndiGrid, as per latest valuation, subject to the Base to the Base Fee not exceeding 1.75% of EBITDA Fee not exceeding 1.75% of EBITDA,
Slide 25: Annexures
A NNEXURES 25 25
Slide 26: Asset Portfolio
Asset Portfolio 13 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 FY24 Tariff Metal5 Asset States Elements Contract COD (%)1 (₹ Million) C
Slide 27: 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% 100% BDTCL JTCL RTCL PKTCL MTL NTL Kallam OGPTL PTCL ENICL GPTL JKTPL PrKTCL# NER-II
Slide 28: Diversified Investor Base
Diversified Investor Base As on Mar 31, 2023 Corporates & Supported by marquee long term investor base Retail Trusts 24% 16% Insurance 6% Others ~24% owned by DIIs including insurance companies, mutual ~23% 1% funds, pension fund and corporates Other FIIs 9% Retail Holding at ~24% ; quadrupled in va
Slide 29: 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 30: 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 31: Thank You
T H AN K Y O U 31