IndiGrid Infrastructure Trust · NSE:INDIGRID
IndiGrid Infrastructure Trust — IndiGrid — Q1 FY24 Earnings Presentation
22 slides from IndiGrid Infrastructure Trust's earnings presentation, July 2023
Slide 1: Investor Presentation Q1 FY24 Results
I N V E S TOR P R E S E N TA TION Q 1 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 ~ ₹ 229 Bn1,2 19 STATES & 1 UT ASSETS UNDER MANAGEMENT 61 REVENUE GENERATING ELEMENTS1,2 ~8,468 ckms 1,2 ~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%
Slide 5: Q1 FY24 Quarterly Update
Q1 FY24 Q UARTERLY UPDATE 5
Slide 6: Q1 FY24 Highlights
Q1 FY24 Highlights Portfolio Update ❑ Completed 6 years of value accretive growth, sustainable distributions and best in class governance practices since listing ❑ Virescent Renewable Energy Trust (VRET) ▪ Transaction closure process underway; received SEBI approval; ▪ Targeting closure in last week
Slide 7: Q1 FY24 Industry Update
Q1 FY24 Industry Update Power Demand and Supply Trend + 4.7% + 15.5% ❑ Average quarterly peak power demand registered at 220.2 GW for Q1 FY24 210.2 220.2 182.1 ❑ Peak power demand witnessed YoY rise of 4.7% ❑ India has envisioned aggressive generation growth to meet growing consumption demand ❑ Inst
Slide 8: VRET Transaction Update
VRET Transaction Update Update Transaction • June ’23: Received unitholders’ approval • IndiGrid has signed definitive agreements to acquire VRET along with its IM and PM, for the VRET acquisition1 at a value of ~ ₹ 40 billion, subject to closing adjustments • July ’23: Received SEBI approval for th
Slide 9: Q1 FY24 Operational Performance
Q1 FY24 Operational Performance ❑ Zero Harm on HSE Q1 FY24 availability(%) ▪ Zero - Fatality, 1 LTI – Reportable , 1 FAC – Recordable, 1 MTC- 99.68 99.89 99.52 99.57 99.98 100.00 99.93 100.00 99.56 100.00 99.96 99.84 95.73 100.00 99.36 Recordable. ❑ Performance ▪ Power Transmission : Q1 FY24 Average
Slide 10: Q1 FY24 Financial Performance
Q1 FY24 Financial Performance Earnings Revenue (₹ Mn) EBITDA (₹ Mn) ₹ Mn Q1 FY24 Q1 FY23 % change 6,292 5,669 5,542 5,609 5,039 5,122 Revenue 6,292 5,609 12% EBITDA 5,669 5,122 11% NDCF Generated 1,734 1,153 50% DPU (₹ per unit) 3.45 3.30 5% Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY22 Q1 FY23 Q1 FY24 Collection
Slide 11: Q1 FY24 Distribution Update
Q1 FY24 Distribution Update Particulars Q1 FY24 Q1 FY23 Quarterly Distribution Trend Distribution per unit (DPU) (₹) 3.45 3.30 - Interest 3.1759 3.06 3.45 - Dividend 0.0611 1 NIL 3-4% YoY growth 3.30 - Capital Repayment/Others 0.2130 0.24 3.19 Outstanding Units (Mn) 700.2 700.2 3.00 3.00 3.00 Gross
Slide 12: Q1 FY24 Consolidated EBITDA to NDCF Waterfall
Q1 FY24 Consolidated EBITDA to NDCF Waterfall (In ₹ Mn) 164 5,730 4,788 Reserve worth -1,056 ₹ 681 Mn used -31 -20 -151 during the quarter; reserve balance at ~ ₹ 2,543 Mn 681 2,416 1,734 -2,897 -5 EBITDA at SPV Finance cost WC Movement Capex Tax at SPV NDCF at SPV Expenses at Finance cost at Tax at
Slide 13: Robust Balance Sheet
Robust Balance Sheet Gross Borrowing ~ ₹ 146 Bn AAA Rated ~7.58% ₹ 10.41 Bn 6 4 By CRISIL, ICRA & Average Cost of Cash 9 NCDs 47% India Ratings Debt Balance1 26 Bank Loans 53% 15 ~83% ~60.1% 2.08x Fixed Rate Net Debt/AUM EBITDA/Interest 18 Borrowings 68 ❑ Weighted average cost of borrowing for incre
Slide 14: Superior Risk-Adjusted Total Returns to Investors
Superior Risk-Adjusted Total Returns to Investors Annualised Return 5% 6% 13% 13% 11% 10% 12% 16%2 Total Returns1 38% 46% 109% 107% 91% 80% 103% 37% 37% 2% 67% 59% 15% 78% 96% 40% -2% 44% 72% 11% 13% 21% 36% 23% GSEC Bond GSEC Bond IndiGrid NSE 500 NSE INFRA BSE Utilities PGCIL PGCIL InvIT (10 year)
Slide 15: 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 – VRET acquisition, framework asset with GR Infra upon its COD ❑ Proactively participate in synerg
Slide 16: Annexures
A NNEXURES 16 16
Slide 17: 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 Metal Asset States Elements Contract COD (%)1 (₹ Million) Co
Slide 18: 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 19: Diversified Investor Base
Diversified Investor Base As on Jun 30, 2023 Corporates & Supported by marquee long term investor base Retail Trusts 25% 15% Insurance 6% Others ~24% owned by DIIs including insurance companies, mutual ~23% 1% funds, pension fund and corporates Other FIIs 9% KKR (Sponsor) Retail Holding at ~25% ; qu
Slide 20: 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 21: Glossary
Glossary AC Alternate Current KKR KKR & Co. Inc. (including its affiliates and subsidiaries) 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 Limited MTL Maheshwaram T
Slide 22: Thank You
T H AN K Y O U 22