IndiGrid Infrastructure Trust · NSE:INDIGRID
IndiGrid Infrastructure Trust — India Grid Trust — Q1 FY19 Earnings Presentation
23 slides from IndiGrid Infrastructure Trust's earnings presentation, Jul 25, 2018
Slide 1: Investor Presentation Q1 FY19
Investor Presentation Q1 FY19 1 25 July 2018
Slide 2: Disclaimer
Disclaimer Thi s presentation i s prepared and issued by Sterlite Investment Managers Limited (the “Investment Manager”) on behalf of and in i ts capacity as the investment manager of India Grid Trust (“IndiGrid”) for general information purposes only without regards to specific objectives, financia
Slide 3: Index
Ind ex 1. Overview Investor 2. Vision and value proposition P re s e n t a tion 3. Q1 FY19 performance Q1 F Y 1 9 4. Growth strategy 5. Appendix 3
Slide 4: Overview
Overview 4
Slide 5: IndiGrid - India's only Power Transmission yield platform
IndiGrid - India’s only P o w e r T r a n s m i s s i o n y i e l d p l a tf o r m • Owns inter-state high voltage power transmission assets • Ful l y operational and revenue generating portfolio • Focused on stable and sustainable distribution to unitholders • Strong growth pipeline with ROFO on Sp
Slide 6: IndiGrid Vision
IndiGrid Vision To become the most admired yield vehicle in Asia which is built upon solid fundamentals of transparency, governance & providing superior risk-adjusted returns to unitholders Deliver B e s t-in-class INR 3 0 0 B N p redictabl e c o r po r ate AUM by 2022 D PU and governance growth 6
Slide 7: Compelling value proposition targeting 12% IRR
Compelling value proposition targeting 12% IRR ✓ Highly stable business model – availability based tariff with minimal counterparty risk Best in class risk adjusted ✓ Very long term annuity like cash flows returns ✓ AAA rated ✓ 12% portfolio IRR from Sponsor assets ✓ Robust industry outlook – $46 bi
Slide 8: Q1 FY19 performance
Q1 FY19 performance 8
Slide 9: Q1 FY19 results highlights
Q1 FY19 results highlights 9 o Strong financial and operational performance o INR 1,458 million EBITDA, up by 10 % QoQ on the back of acquisitions o CERC tariff order received for BDTCL, non-escalable tariff revenue increased by 0.69% o DPU of INR 3.00, payable entirely as interest to unitholders o
Slide 10: Continued strong financial performance
Continued strong financial performance Consolidated Financials Quarterly DPU (INR) INR million Revenue EBITDA DPU (INR) 3.00 3.00 Q2 FY18 1,323 1,223 2.75 2.89 Q3 FY18 1,267 1,173 2.89 2.75 Q4 FY18 1,480 1,326 3.00 Q1 FY19 1,600 1,458 3.00 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 INR 11.64 /unit distribution
Slide 11: Q1 FY19 NDCF and Distribution
Q1 FY19 NDCF and Distribution EBITDA to Distribution (in INR millions) © INDIGRID 11
Slide 12: Operational performance
Operational performance Historical Availability since COD Q1FY19 Availability 99.6% 99.8% 100.0% 99.8% 99.9% 99.7% 100.0% 99.9% 99.8% 99.9% 100.0% 100.0% 99.9% 99.3% 99.5% 99.9% 100.0% BDTCL JTCL RTCL BDTCL JTCL RTCL PKTCL BDTCL JTCL RTCL PKTCL MTL BDTCL JTCL RTCL PKTCL MTL FY16 FY16 FY17 FY17 FY18
Slide 13: Debt Profile
Debt Profile Repayment Schedule* (in INR Millions) 6,988 10,425 1,554 1,658 620 621 540 572 373 429 292 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 ➢ AAA rated by CRISIL, ICRA and India Ratings Debt breakdown as of 30 June, 2018 INR Millions ➢ Net Debt/AUM of ~44% EC
Slide 14: Growth strategy
Growth strategy 1 4
Slide 15: Strong pipeline of existing Sponsor Assets
Strong pipeline of existing Sponsor Assets East North Odisha Gurgaon- Khargone NER-II NRSS XXIX Goa Tamnar Interconnection Generation Phase Palwal Transmission Ltd Transmission Transmission Ltd Transmission Ltd Transmission Ltd Transmission (KTL) Limited (NTL) Project Ltd. (ENICL) (OGPTL) Ltd (GPTL)
Slide 16: AUM in INR billion
12% portfolio IRR from Sponsor assets FY2018 FY2019-2020 FY2020-2021 FY2022-2023 AUM in INR billion First third party investment by IndiGrid to be completed Note: IPA and MRP AUM as of 31st March 2018 © INDIGRID 16
Slide 17: Indicative DPU considering Sponsor assets and PTCL
Indicative DPU considering Sponsor assets and PTCL 15.0 IPA assets MRP Injection I Injection II Injection III 13.0 Acquisition of 3rd party assets and future Sponsor projects 11.0 9.0 DPU (INR) 7.0 5.0 3.0 1.0 © INDIGRID 17
Slide 18: Appendix
Appendix 1 8
Slide 19: Sector fundamentals point to strong growth in the next few years
Sector fundamentals point to strong growth in the next few years All India Electricity Demand Scenario Growth in RE capacity addition and rise in coal capacity NPAs warrants for an increase in transmission capacity ▪ All India electricity demand is likely to increase from ▪ NEP3 calls for 57% (362 G
Slide 20: Grid-connected renewables and stronger Tx networks coming into play
Grid-connected renewables and stronger Tx networks coming into play MNRE Grid-Connected Renewable Targets 2016-2019 Distribution of Industrial Power Shortage (Weekly) 3% 25,000 100 18% 100 850 Less than 1 hour 20,000 Grid-Connected RE (MW) 225 750 5,200 37% 1-5 hours 4,600 Small Hydro 500 15,000 6-1
Slide 21: Investments into transmission to gain traction
Investments into transmission to gain traction Green Energy Transmission the More awards Corridor (GEC) to fulfill SECI-ISTS Tenders missing link expected in 2018-19 demand ▪ Only 59.9% of the annual ▪ The GEC will create an ISTS ▪ SECI has bid out 5,750 MW ▪ Time taken to set up a target for adding
Slide 22: Further growth potential from near term bids
Further growth potential from near term bids… Current Inter-State and Intra-state TBCB tenders Name of Tender Type Stage of Tender Location Est. Cost (INR bn) Strengthening in Jharkhand (Package 1) InSTS RFQ submitted Jharkhand 14.0 Strengthening in Jharkhand (Package 2) InSTS RFQ submitted Jharkhan
Slide 23: Glossary
G l o ss a r y AUM Assets Under Management Availability Percentage amount of time for which the asset i s available for power flow BDTCL Bhopal Dhule Transmission Company Limited CERC Central Energy Regulatory Commission DISCOM State Distribution Companies DPU Cash paid to the Unitholders in the for