On the back of recent acquisitions, IndiGrid, a listed infrastructure investment trust (InvIT) reported revenues of ₹384 crore, a 17 per cent rise in the September-ended quarter compared with ₹328.4 crore posted in the same period last year.
The Board of the Investment Manager of India’s first power sector InvIT approved a Distribution Per Unit (DPU) of ₹3 for the second quarter, entirely payable as interest to unitholders. With this payout, IndiGrid has distributed ₹39.56 per unit to its investors over the last 14 quarters since its listing, which translates to a total return of 42 per cent.
IndiGrid owns 11 operating projects consisting of 28 transmission lines with more than 6,280 km length and nine substations with 11,460 MVA transformation capacity. Recently, IndiGrid acquired power transmission line operator’s Jhajjar KT Transco Pvt Ltd assets from Kalpataru Power Transmission Ltd and Techno Electric & Engineering Company for ₹310 crore. Additionally, IndiGrid acquired assets of Gurgaon Palwal Transmission Ltd (GPTL) from Sterlite Power for ₹1,080 crore.
The quarter was also marked by an overall improvement in power demand and normalisation of collections to 113 per cent in the second quarter, said CEO Harsh Shah. Further, during the quarter, IndiGrid’s EBITDA was ₹346.2 crore, a 14 per cent increase compared with the same period last year.
Shah further stated that the company’s operations have remained steadfast despite Covid-19 and the remote working environment. It acquired two more projects worth ₹1,400 crore to its portfolio during the quarter.
“In addition, IndiGrid’s growth plans have been reaffirmed by the successful induction of Esoteric II (an affiliate of KKR) as a sponsor, marking an extension of IndiGrid’s strategic relationship with KKR,” said Shah.
As part of KKR’s first investment through its Asia Pacific infrastructure strategy, it had invested ₹1,084 crore in May 2019, and currently owns 23 per cent stake in IndiGrid. Separately, KKR also owns 60 per cent stake in Sterlite Investment Managers Ltd.
Shah also pointed to tailwinds of recovery in power demand and improvement in collection efficiencies to help the company going forward. IndiGrid’s assets under management (AUM) was ₹13,900 crore at the end of September.
Published on November 3, 2020
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