IndiGrid net profit rises 37% YoY to Rs 137 crore in Jan-Mar quarter
Infrastructure investment trust India Grid Trust on Friday posted a 37.4 per cent rise in its consolidated net profit to Rs 137.12 crore in the January-March 2023 quarter compared to a year ago, on the back of higher revenues.
The consolidated net profit of the company was Rs 99.80 crore in the quarter ended on March 31, 2022, a BSE filing showed.
On a year-on-year basis, the consolidated revenue for the quarter was up 9 per cent to Rs 598.9 crore, the company said in a statement.
IndiGrid ended the quarter with an AUM (assets under management) of Rs 22,800 crore and a net debt to AUM of 59.5 per cent, leaving significant debt headroom for further growth.
The Board of the Investment Manager approved a Distribution Per Unit (DPU) of Rs 3.45 for Q4 FY23, closing the year ahead of the DPU guidance of Rs 3.30 per quarter.
The record date for the distribution is May 18, 2023, and shall be paid as Rs 2.53 per unit in form of interest, Rs 0.29 per unit in form of dividend, Rs 0.58 per unit as capital repayment, and Rs 0.05 per unit as other income, all in accordance with section 115UA of the Income Tax Act.
With this, IndiGrid has distributed Rs 71.86 per unit to its investors totalling to Rs 3,888 crore distribution since its listing.
For FY24, the DPU guidance has been raised by 4.5 per cent on a run-rate basis, to be at Rs 13.80 for the year.
Meanwhile, IndiGrid's board of directors (excluding the KKR representatives), approved the acquisition of 100 per cent units of Virescent Renewable Energy Trust (VRET) along with its Investment Manager (IM) and Project Manager (PM), at an enterprise valuation of Rs 4,000 crore, subject to closing adjustments.
The transaction followed a competitive bidding process and is subject to requisite regulatory and unitholder approvals.
VRET is India's first and only renewable energy Infrastructure Investment Trust (InvIT) comprising a portfolio of 16 operational solar projects through 14 SPVs (special purpose vehicles) across 7 states and with a cumulative capacity of 538 MWp.
The acquisition will be funded through a combination of internal accruals, debt and further capital raise.
Sponsored by KKR, VRET is an AAA-rated InvIT with a strong institutional framework comprising marquee unitholders such as AIMCO, Utilico, L&T and others.
VRET's assets have 7 years of operational history and ~18 years of average remaining tenure with Power Purchase Agreements (PPAs) with strong counterparties enabling it to manage a healthy receivables profile.
Post this acquisition, IndiGrid's AUM will increase to Rs 26,900, its net debt to AUM will reach 65 per cent, and the overall solar assets portfolio will be at 674 MWp.
Harsh Shah, chief executive officer and whole-time director of IndiGrid, said in the statement, "We have reported a very strong quarter of consistent growth driven by accretive acquisitions we completed during FY23 and FY22. We bumped up the DPU for Q4 to Rs 3.45, exceeding our full year guidance and guide for a 4.5 per cent growth in DPU for FY24, on a run-rate basis, to Rs 13.80."
The board has also approved a proposal for raising debt up to Rs 4,250 crore through various sources, including term loans and non-convertible debentures.
It also approved a resolution to raise capital up to Rs 1,500 crore, subject to receipt of necessary approvals from statutory, regulatory and other authorities as applicable.
