23 slides from Indigrid Infrastructure Trust's earnings presentation, November 2023
Slide 1: Investor Presentation Q2 FY24 Results
I N V E S TOR P R E S E N TA TION Q 2 FY24 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: Portfolio Overview
Portfolio Overview ~ ₹ 269 Bn1,2 20 STATES & 1 UT ASSETS UNDER MANAGEMENT 80 REVENUE GENERATING ELEMENTS1,2 ~8,468 ckms1,2 ~17,550 MVA1,2 46 LINES 13 SUBSTATIONS TRANSMISSION - ~27 YEARS 555 MW(AC) S OLAR - ~ 18 YEARS S OLAR GENERATION AVERAGE RESIDUAL CONTRACT3,4 ~12,970 1 ~5,30,000 MT5 TOWERS STEE
Slide 5: Q2 FY24 Quarterly Update
Q2 FY24 Q UARTERLY UPDATE 5
Slide 6: Q2 FY24 Highlights
Q2 FY24 Highlights Portfolio Update ❑ Completed acquisition of Virescent Renewable Energy Trust (VRET) in Aug.’23 for ~INR 40 billion ❑ IndiGrid’s renewable portfolio increased 5x from 138 MWp to 676 MWp; IndiGrid’s AUM increased by ~18% to ₹ 269 billion post VRET acquisition ❑ Letter of Award for B
Slide 7: Q2 FY24 Industry Update
Q2 FY24 Industry Update Power Demand and Supply Trend 228.5 ❑ Average quarterly peak power demand registered at 228.5 GW for Q2 FY24 193.9 195.0 ❑ Peak power demand witnessed a significant YoY rise of 17% ❑ India has envisioned aggressive generation growth to meet growing consumption demand ❑ Instal
Slide 8: Q2 FY24 Operational Performance
Q2 FY24 Operational Performance ❑ Zero Harm on HSE Q2 FY24 availability(%) ▪ Zero - Fatality, Zero – MTC, 1 LTI – Reportable , 3 FAC – Recordable 99.81 99.27 100.00 99.80 100.00 99.95 99.98 100.00 100.00 99.93 99.87 99.92 98.18 99.82 99.89 ❑ Performance ▪ Power Transmission : Q2 FY24 Average availab
Slide 9: Q2 FY24 Financial Performance
Q2 FY24 Financial Performance Earnings Revenue (₹ Mn) EBITDA (₹ Mn) ₹ Mn Q2 FY24 Q2 FY23 % change 6,950 5,354 5,584 5,476 5,810 5,040 Revenue 6,950 5,810 20% EBITDA 5,584 5,354 4% NDCF Generated 3,086 2,798 10% DPU (₹ per unit) 3.55 3.30 7.5% Q2 FY22 Q2 FY23 Q2 FY24 Q2 FY22 Q2 FY23 Q2 FY24 Collectio
Slide 10: Q2 FY24 Distribution Update
Q2 FY24 Distribution Update Particulars Q2 FY24 Q2 FY23 Quarterly Distribution Trend Distribution per unit (DPU) (₹) 3.55 3.30 - Interest 2.8961 3.11 3.55 - Dividend NIL NIL ~4% YoY growth - Capital Repayment 0.6341 0.19 3.30 3.19 - Other income 0.0198 NIL Outstanding Units (Mn) 731 700.2 3.00 3.00
Slide 11: Q2 FY24 Consolidated EBITDA to NDCF Waterfall
Q2 FY24 Consolidated EBITDA to NDCF Waterfall (In ₹ Mn) 936 6,728 -110 -6 52 -352 5,855 Reserve worth 3,086 ₹ 491 Mn replenished during -3,282 -9 the quarter; reserve balance at ~ ₹ 3,034 Mn 491 2,595 EBITDA at SPV Finance cost WC Movement Capex Tax at SPV NDCF at SPV Expenses at Finance cost at Tax
Slide 12: Robust Balance Sheet
Robust Balance Sheet Gross Borrowing ~ ₹ 188 Bn AAA Rated ~7.56% ₹ 18.70 Bn 9 4 By CRISIL, ICRA & Average Cost of Cash 9 NCDs 55% 28 India Ratings Debt Balance1 Bank Loans 45% 16 ~84% ~63.5% 1.87x Fixed Rate Net Debt/AUM EBITDA/Interest 76 Borrowings 45 ❑ Weighted average cost of borrowing for incre
Slide 13: Superior Risk-Adjusted Total Returns to Investors
Superior Risk-Adjusted Total Returns to Investors Annualised Return 5% 6% 13% 13% 12% 13% 13% 11%2 Total Returns1 38% 44% 113% 116% 114% 126% 114% 28% 38% 1% 75% 2% 90% 90% 104% 40% -2% 44% 75% 12% 15% 23% 39% 26% GSEC Bond GSEC Bond IndiGrid NSE 500 NSE INFRA BSE Utilities PGCIL PGCIL InvIT (10 yea
Slide 14: Business Outlook
Business Outlook Portfolio Strategy ❑ Focus on maintaining stable operations for predictable and sustainable distribution while looking for value accretive acquisitions ❑ Consummation of pipeline deals – framework asset with GR Infra upon its COD ❑ Greenfield Development – Commissioning of Kallam Pr
Slide 15: DPU Accretive Acquisitions
DPU Accretive Acquisitions 17.0 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 14.0 14.10 13.35 13.0 12.75 12.20 12.0 12.00 12.00 1
Slide 16: Annexures
A NNEXURES 16 16
Slide 17: Asset Portfolio – Transmission Assets
Asset Portfolio – Transmission Assets 13 Inter State TBCB 1 Intra State TBCB 1 Regulated Tariff 1 Under Construction TBCB Transmission Projects Transmission Project Transmission Project Transmission Project Availability AUM2 FY24 Tariff Metal Asset States Elements Contract COD (%)1 (₹ Million) Contr
Slide 18: Asset Portfolio – Solar Assets
Asset Portfolio – Solar Assets PPA Tenure at CoD AUM1 Asset DC Capacity AC Capacity States COD Offtaker (years) (₹ Million) Solar - I 68 50 Andhra Pradesh Jul-18 SECI 25 3,223 Solar - II 70 50 Andhra Pradesh Jan-19 SECI 25 3,449 SolarEdge 169 130 Maharashtra Apr-18 SECI 25 9,528 TL Patlasi 22 20 Mad
Slide 19: Corporate Structure
Corporate Structure Other Unitholders Initial Portfolio Asset Transmission Assets Sponsor Solar Assets ~23% ~19% ~58% % Represents Economic Ownership 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% 10
Slide 20: Diversified Investor Base
Diversified Investor Base As on Sep 30, 2023 Corporates & Supported by marquee long term investor base Retail Trusts 22% 18% Insurance 7% Others ~24% owned by DIIs including insurance companies, mutual ~25% 3% funds, pension fund and corporates Other FIIs 8% KKR (Sponsor) Retail Holding at ~22% ; qu
Slide 21: 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 22: Glossary
Glossary AC Alternate Current MW Megawatt AUM Assets Under Management NAV Net Asset Value per unit Availability Percentage amount of time for which the asset is available for power flow NCD Non-Convertible Debentures BDTCL Bhopal Dhule Transmission Company Limited Net cash flow at trust’s disposal f
Slide 23: Thank You
T H AN K Y O U 23